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Simi Valley Short Sale Market Update-HyperLocal

By Chris B Johnson REALTOR®

Real Estate Agent with Allison James Elite CA. DRE 01501699

October 27, 2014 10:15 AM

By Chris B Johnson Realtor, Simi Valley Short Sale, Moorpark Short Sale Ventura County Short Sale, Moorpark Short Sale , Thousand Oaks Short Sale,

A recent study has concluded that 39% of buyers prefer to rent out their last residence rather than sell it when purchasing their next home.

The study cites that many homeowners were able to refinance and “locked in a very low mortgage rate in recent years. That low rate, combined with a strong rental market, means they can charge more in rent than they pay in mortgage each month... so they are going for it.”

This logic makes sense in some cases. Residential real estate is a great investment right now.

However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for. Are you ready to be a landlord?

Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.

10 Questions to ask BEFORE renting your home

How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
Have you interviewed experienced eviction attorneys in case a challenge does arise?
Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
Will you allow pets? Cats? Dogs? How big a dog?
How will you actually collect the rent? By mail? In person?
Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
Do you have a list of craftspeople readily available to handle these repairs?
How often will you do a physical inspection of the property?
Will you alert your current neighbors that you are renting the house?

Bottom Line

Again, renting out residential real estate historically is a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.

Thanks for reading this,

Many Ventura County Homes Appreciated by over 16% Last Year. If you’re thinking of selling, yours may have now have enough equity to sell without being “Short”.

Pricing your home correctly the FIRST TIME is more important than ever!

If you want an accurate idea of what your home is worth Click Here:

You may now have enough EQUITY in your home to sell WITHOUT

having to be “short”. If you are thinking about a short sale I can help

you get an accurate value for your home and get back on your feet.

If you would like periodic updates on what is going on in

Your Neighborhood or the Ventura County Real Estate Market, Click on the Links!

Thanks for reading this,

Chris B Johnson.

Chris B Johnson is a Realtor with Berkshire Hathaway HomeServices .

Phone: 805-208-0823.

email cjohnson@BHHScalhomes.com.