Hello, Millennials! I am talking to you:
Rather than sell your home, maybe you should consider renting it out instead.
Are you ready to move up to a new home? Have you been in your town home or condo longer than you had planned and are now bursting at the seams? Or maybe you bought at the height of the market and still owe more than market value?
I speak with Millennials every day who bought their homes either between 2005-2008 (they bought at the height of the market with 100% financing) or between 2009-2014 (they paid a reasonable price but have not had much appreciation so it may not make sense to sell the home yet). What I advise them to do is to take a serious look at renting out their home before automatically deciding to sell it. Let's at least run the numbers on it and weigh the pros and cons.
Do I think renting out your home is right for everyone? Absolutely not!
But I do think you should at least look into it and rule it out before you automatically go down the home sale path.
Young Professionals Have Real Estate Options, Too.
My clients are smart, savvy professionals who, for a variety of reasons, decided to purchase and enjoy home ownership. But now they are ready to go - either move up to a new home, move out of state for a new job, or move into another owned or rental home due to a new relationship. My clients are ready for the next chapter of their lives and we at Yaffe Real Estate and Chesapeake Property Management are here to help them move on as seamlessly as possible.
The obvious thing to do is to sell your home. And we agree - you should do your homework regarding selling your home. We have been helping clients buy and sell homes for over 23 years!
>> See What Is My Home Worth?
But, in these economic times, we strongly believe that, in addition to doing your due diligence on selling your home, you should also look into renting out your home. And, yes, you can rent out your home and qualify for a loan to buy a new home.
Here are a few reasons why we think Millennials are the perfect group to investigate this.
Job Fluidity Means You Need Flexible Real Estate Options.
You change jobs often and your jobs are not guaranteed. That means that you won't be staying with one company for 40 years like your parents did. To be upwardly mobile, you have to jump around a bit - to different positions, to different cities and to different states. For some jobs, you will be compensated as a full-time salaried employee, sometimes you will be a contract employee, and sometimes you will be part time. In order to move up the ladder, you have to be agile and flexible and ready to accept positions so you can gain the necessary skills, even if they don't give you much stability.
As you move around, we think you should strongly consider holding onto your real estate here in the Baltimore Metro area while you rent and "try out" your new area. You can continue to enjoy tax deductions and appreciation while you follow your career wherever it takes you.
Renting Out Your Home Means An Additional Income Stream.
It is hard to earn enough money from one income stream to support the lifestyle that you want. You may be the first generation that does not live as well as your parents. I regularly talk to my kids about multiple income streams and how much it has helped us as a family. From personal experience I can tell you that having multiple income streams has given us peace of mind and afforded us a lifestyle that we never could have achieved if we only earned income as employees.
We have 2 businesses - Yaffe Real Estate and Chesapeake Property Management - a few rental properties and some financial investments. It is not uncommon to have one income stream up while another is down (for example, when sales were down, Yaffe Real Estate was down. But during those times, rentals were up and Chesapeake property management was up.) Having the cash flow from our rental properties has sustained us while we adapted and changed our businesses to succeed in changing economic times.
Think about adding another income stream, a rental property, to your earned income. If managed properly, it can really help your cash flow.
Your Real Estate Property Is A Safe Investment.
Real estate as an investment is very safe vs other investments. I am a financially conservative person and real estate feels safe to me. I can see it, I can check on it, and I trust it. Financial investments make me more nervous - stocks, options, etc. They are just pieces of paper and I feel out of control regarding these investments; there is too much I can't control in the financial markets.
But real estate? That feels safe to me. And I want to share this "safe" feeling with you. That is why Yaffe Real Estate and Chesapeake Property Management were created. To give you "peace of mind" so that you could keep your rental property and move on with your life. We are here to give you sound real estate information so that you can choose the best option for you. While other real estate companies automatically always tell you to buy and sell, we believe that sometimes you should rent out your current home.
Our competitors are often looking out for their own bottom line and not looking out for what it in your best interest. Let's expand your options and make sure we look at each one closely before we automatically go down one path.
If appropriate, we can manage your home and your investment while you move up and out. We know how scary it is to trust another person to manage an expensive investment for you and we want to fill that gap.
Before we started Chesapeake Property Management, we looked at other property management companies to help us manage our properties and, frankly, they scared us! I felt there was a total lack of professionalism, a lack of attention to detail and just not enough knowledge and depth for me to feel good about working with any of them. And, if I could not work with them, how could I refer them to my real estate clients? So we set out to create a property management company that could meet our needs and the needs of our desired client base.
Our goal was to create a company that is:
- Highly professional with hands on owners,
- Where every team member has an in depth knowledge of the real estate market, and
- Where every team member truly cares about the property, the landlords, the tenants and the community.
- A company that always remembers that we are people helping people - we are not a national company just going through the motions and only concerned about profits. We actually want to make a positive difference in people's lives.
Now's The Time To Experiment With Being a Landlord.
Now is the time to experiment with being a landlord.
We bought our personal investment properties when we were in our early 30s. We bought and experimented before we knew any better:).
- Experiment now, while you have some disposable income and before the kids take up every last penny.
- Experiment now while you have some time to check in on your property.
- Experiment now before you become too risk averse.
Once you find the right property management company (hopefully you will choose us), then when your time gets tighter, you will already know that your investment property is in good hands and you will not have to invest much time at all. You will already trust us and that allows you to not just move on with your life, but also to enjoy where you are in your life.
We have had one client for almost 15 years whom we have never met! He dropped the keys through the mail slot before he left town and has never been back. He trusts us completely. We communicate via the phone, email and his Landlord portal and, now, when his time is extremely tight with his business and family, he knows that we are here to take care of his property.
Before You Sell, Explore Renting Out Your Home Instead!
So before you sell that home, at least investigate whether you should rent it out. Yes, we can help you sell it. No problem. But let's look at all of your options, weigh the pros and cons and then put together the strategy that is best for you and your family. No two situations are the same and we are here to customize the right path for you. As always, no pressure, I promise.