What do you do when you find yourself with a property that you’re not planning to live in?
We get this question a lot at Five Star Property Management. Usually, we’ll hear from adult children who have to move their parents or their grandparents out of the property that may have been in the family for generations. They’re not sure what to do.
You have options, and our job as a professional Foster City property management company is to help you think through those options and show you what the result could be if you decide to rent it out.
Keeping and Renting a Property
If you and your family members decide that it’s not the right time to sell the property, you have to talk about what you’re going to do with it. Maybe someone in the family needs a place to live, and will want to take it over. Or, perhaps you’ll decide that renting it out is the best course of action. Usually, when people decide they want to rent that property to tenants, they’re not sure how to get started.
Any professional property management company should be able to give you some simple steps to get started. We will guide you through the process and help you make educated and informed decisions that will result in the best outcomes for everyone.
Rental Income and Maintenance Investments
Only you can answer whether you want to keep and live in the property or rent it out to tenants. If you do decide to rent it out, contact a property management company immediately. We can come in and evaluate the house. We can talk to you about the different scenarios that you will face.
Our experience will allow us to give you an estimate on the property’s rental value. So, you’ll know about how much rent you can expect to earn. We’ll also talk about the work that you’ll need to do to get the property ready for the rental market. It’s unlikely that you’ll have to pour $50,000 into a total renovation, but you should be prepared to spend a few thousand dollars getting it ready for a tenant. It’s very rare that we get a new property that doesn’t need any work at all.
Understanding these financial matters is important, especially if you’re moving your family member into a senior care center or an assisted living facility. You may need to rely on the rental income to cover those costs. And, even if you have to spend $5,000 getting the property ready to rent out, you’ll earn a lot more on that investment over time.
We know this can be an emotional and confusing time for a lot of people, and we’re here to help. Our job is to help you weigh the pros and cons of every option and figure out the best solution for you.