Thinking of Renting out your House? Here is what you need to know.
Tue, Aug 9 2016 at 10:47am
Hope Street Real Estate Corporation?s goal is to provide the best property management Edmonton and Calgary have to offer. We met with 991 prospective new clients last year, conducted 4202 showings, received 8722 phone calls from prospective tenants, and hosted 128,289 sessions on our website. Without a doubt, the most common question that came up throughout these 141,213 interactions in 2015 was from inquisitive individuals or families asking us, ?Should I rent out my house?? This blog post will examine some of the common traits from our clients who answered yes to that questions, and we hope that we will be able to offer some insight to help you decide.
Who Should Rent Out their House - Client Profiles.
Obviously, making sweeping generalizations is difficult and dangerous, especially when making big decisions relating to property management for your home in Calgary or Edmonton, but we believe that a statistical analysis and historic trend will dictate who rents out their homes. Generally speaking (another generalization, gasp) we are able to confirm that about 81% of our 602 new clients last year fit into one of the following three client types: Jetsetter (46%), Accidental Landlord (30%), and Investor (5%).
All of these ?client types? present some good opportunities in the current Alberta rental market and some careful consideration of the benefits of each will show us some fairly significant different perspectives.
You are a Jetsetter if you have some reason (usually work related) to move to another city or country and are somewhat unsure as to how long you will be gone for. Keeping your nest egg in Alberta is a great idea because you?re fairly sure that you will end up back here, and because you figure the market will improve and your home will be worth more in the future than it is now.
You are an Accidental Landlord if you have been trying to sell your home for more than 90 days and have concluded that renting for the short term is the best defensive move for you. Your property is most likely leveraged, and in some cases ?underwater? meaning the outstanding mortgage balance is greater than the current market value of your property.
You are an Investor if you have purchased one or more rental properties and plan to rent them out for cashflow, equity growth through mortgage pay down, and or capital appreciation of your property. We have found that Calgary and edmonton property management seem to be a great option for Landlords in this group, because a property manager will free up your time to find other good rental properties.
How do I make my current home into a rental home?
The biggest thing that new landlords have trouble grasping is the concept of turning the home into a business. Your home is no longer your home; it is a rental house. I understand that this sounds a little harsh, but changing your thinking is, hands down, the most important thing that a new landlord can do. Land lording is a tough business, we?ve all heard horror stories (for every one horror story, 20 versions of the same story exist in the public realm), there are midnight emergency calls (sometimes), and showing a property to a prospective tenant can be time consuming, frustrating, and even present some safety issues in certain cases. Successful landlords view their rental property as a business, and deal with the risks, operational efforts, and returns in the exact same way. There is no emotion, catastrophic disappointments, or tense situations when a homeowner changes their view of the home to a business operation whose governing philosophy is based on profit and loss, not emotional aspects of home.
Thinking of renting our your home? The next step is to call your nearest Hope Street office, we?ll provide you with a free, no-obligation, in home consultation, and chat about this and much much more. After all, this ain?t our first rodeo!
Hope Street Real Estate Corporation is an industry leading team of property managers whose goal is to be the best property management Calgary and Edmonton have available.