If you are currently thinking about listing your home for sale, you also might be considering putting your condo on the market for rent as well. The one thing you might want to know is that you are not alone, and this option is becoming more of a trend in the downtown Boston market. If you have purchased your home since 2004, there always is a possibility you won’t “break even” on your investment. Its an interesting time in this market since many sellers are mentally adamant that they need to make money on their investment and to wait few more years until their home appreciates in value. Many sellers try to put their home on the market for a while and if it doesn’t sell within 2-5 months, they start to consider putting it on for rent.
Tips for Renting vs. Selling
1. Have a Game Plan. If you have been contemplating Renting as well as Selling your home, set up a time line. If your home is not gaining traction in the sales market, say “if my home does not get sold within 2 months, then we are also going to put it on the market for rent.”
2. Try the Sale Route first. If you are considering “Either-Or,” try the sales market for a while. I suggest selling it first. It takes a lot more work, man hours and money to get a property ready for sale, so you should attempt to see if it pays off. During the peak months of the rental season, the property has the potential of going quickly while the sale of the property can take much longer (but with downtown Boston inventory so low, it looks like DOM are starting to look like rental DOM’s.)
3. Pick an Agent who can do Both, or pick an Agent who is teamed up with a rental specialist. Its important to have a good team that supports your end result, or to have someone guide you through both options. Sales and Rentals are different animals and its important to have input on how to approach the rental side of the equation as well. Some people say rentals are easy, but its important to have someone knowledgeable about sales as well.
4. Decide how long you want to rent your property for. If you decide to go down the rental route be upfront with your interested clients on when you want to re-list the property for sale. for instance; if you rent the condo out for 12 months and you tell your tenants that after 8 months you will be putting the place up for sale and start showings, If this is news to them you can have angry tenants in your home, and it can be difficult situation showing the property. In the downtown Boston market, its pretty standard for the tenant to pay the broker fee (well at least during the spring and summer months). If you have a tenant that pays a full fee, moving costs and now have the inconvenience of having to have their place shown, you can see how not explaining your sale plans can affect a relationship.