Today’s blog topic involves your options when you have your parents’ home in Sarasota, and you’re not sure if you should rent it or sell it. People often ask me if it’s a good idea to rent out a property that belonged to their parents. Perhaps the parent has transitioned into a nursing facility or a retirement home, or in some cases the children have inherited a home from their parents.
Let’s take a look at some of the reasons it’s a good idea to hold onto the property and rent it out.
First, rents and property values are going up. Now is a good time to buy property, not sell it. According to a senior real estate economist, home values are projected to increase into the foreseeable future as the millennial generation moves from renting into buying their own homes. Also, baby boomers who are entering middle age and their retirement years are moving into the sunshine state – Florida.
Keeping an Asset
Another good reason not to sell is that someone in the family might want to use the home in the future. Southwest Florida is considered one of the most desirable places to live in the country. You might not have the opportunity to own property here again. That’s a good reason to hold on and not sell.
People have also told me that selling a parent’s home during a time of transition can be very upsetting for the parent, especially if they are moving into a nursing home or long term care facility. Renting the property temporarily while you determine what your long range plans are might be the best idea.
You can use renting the property as a way to generate funds to fix the property up for when you want to sell it in the future. You can even use the income to pay for whatever retirement facility your parents are living in.
You will want a professional property manager to assist you to minimize potential damage to the home, and to handle any problems with rent collection. A property manager can find you a qualified tenant who will pay rent on time and help you execute and enforce the lease contract, as well as oversee maintenance expenses.
If your parent has a home they no longer need, consider the advantages of renting it out instead of selling it. Please contact us at Sarasota Management & Leasing if you need any help.