Over the past 5 years, we’ve seen several clients make the switch from home-ownership to rent. Renting can be a great option depending on what you have going on at the time. Some people want to free up cash for a business venture, others are looking at moving outside the city they’ve been in for a while and want to test out a new neighbourhood before putting down new roots. A lot of sellers decide to rent when they’re ready to downsize, and some are looking to decrease debt, big mortgage payments, and/or reduce expensive monthly upkeep costs that come along with home ownership. Whichever the case, going from owning your own home to living in a rental is a big change. Here’s some advice to help you through the process.
Making The Transition from Home-ownership to Rent
Don’t Search for The Perfect House
If you have been living in your house for a long time prior to moving into a rental, you may have been used to a lot of “norms” that the new rental doesn’t have. The backyard isn’t as big. The kitchen is dated or isn’t as open as your house was. Don’t let these things hold you back from analyzing the bigger picture. The questions you should be asking are: Is the neighborhood close to amenities that you need? Does the rent suit your current budget? Is the landlord approachable and open to feedback? Keep your mind on achieving the necessities and change will come easier.
Managing Your (new) Finances
Moving into a rental could save you big bucks! Depending on your rental agreement, your new monthly rent payment could be lower than your old mortgage payment, and with some rentals utilities could be included further reducing your monthly outlay. This, along with other bills you no longer need to pay (insurance, property tax, condo fees, mortgage interest) could mean freeing up thousands of dollars every year! Not to mention not having to set aside “just in case funds” for a new roof or furnace. Not your problem anymore! But before you book that all-inclusive vacation, it may be wise to reach out to your bank or financial advisor about options for managing your new set of finances. Even if you do not plan to own a house in the future, the decrease in your monthly expenses combined with the equity you may tap into selling your house could be utilized for new investment opportunities. If you invest wisely, this move could be a BIG win in the financial department.
Learn to Communicate (But Not Overcommunicate)
Renting has its perks. For starters the landlord is now responsible for any issues that come up with the house. Before you reach for your toolbox or call a cousin to help repair a broken furnace, contact your landlord and communicate problems you see or experience. Make sure to keep a log of when it occurred, when you reached out, and when your issue got resolved. Landlords know it is their responsibility to ensure that you have a safe, functional home to live in. Reserve your communication for only the most pressing issues. For other matters that are deemed trivial, coagulate them and send it in an email or work out a quarterly meeting with your landlord to provide the feedback. When you reserve your calls for only the most urgent of issues, your landlord will take it seriously and react accordingly.
Have A Positive Mindset
Regardless of what society thinks, renting a home is not deemed inferior to homeownership. With the prices of houses rising rapidly in the past few years, homeownership is becoming unattainable and even unwise to those who cannot afford it. Renting is becoming the growing norm and as long you make timely payments on your rent, you should be proud of your new place you call home. If you are in the position of transiting from homeownership to moving into a rental, contact DCI Properties. We are eager to provide you a hassle-free solution to sell your home so you can focus on your next big milestone. We even provide assistance finding a new rental through our own network of homeowners and landlords!