Turning Real Estate Into A Rental

Many homeowners looking to sell their home have quickly found that the downturn in the economy has turned the real estate market into a buyer's market. This means that it might take a little longer than usual to sell a home. As a result, many homeowners have given up on trying to sell their home, and have instead turned their home into a rental property.

With a buyer's market, the buyer has the upper hand in the purchase of a home. Therefore, the homeowner has no choice but to either sell their home for less than they paid for it, or let their home continue to sit on the market until they receive a better offer price for the home. This leaves many homeowners with no choice but to offer there home as a rental property because it can be financially difficult to pay a mortgage on two homes, especially if they have purchased a new home before finding a buyer for the old home. Renting a property will sometimes have added expenses related to maintenance and wear and tear. However, this is sometimes a better option if the home cannot sell because it allows the homeowner to maintain the mortgage on an unsold home.

With more homeowners choosing to offer their unsold home as a rental, there are more real estate agents who are also offering property management services. This is beneficial to the homeowner because the real estate agent will handle the tenant screening process to find the right tenant. Many times the real estate agent can find a rent-to-own tenant, which gives the tenant the option to eventually purchase the home.