House Not Selling? Renting It Might Be the Solution
Wisconsin’s current real estate market is experiencing difficult times much like the rest of the country. There is a tremendous increase in competition when selling a home in Wisconsin, due to the increased number of short sales and foreclosures. In 2009, there were 35,000 filings for foreclosures in Wisconsin. That is an increase of 190% since 2007, ranking Wisconsin #19 of states with the biggest issue with foreclosures. Currently, buyers in Wisconsin’s real estate market have the advantage. Home prices are still falling and many homes are selling at a loss. Buyers have become more particular and no longer have to look past a home’s minor flaws. It seems like Wisconsin home owners have to put their house on “clearance” just to draw some attention. However, the other option to selling a home at a loss is turning the home into a rental and selling it when Wisconsin’s real estate market recovers.
Renting your home until the market stabilizes can save an owner from taking a loss when selling. The increased number of foreclosures, as well as, banks tightening the requirements on mortgage applicants has significantly increased the pool of renters. There is a growing demand for single family homes. As a property management company in Wisconsin, we have witnessed the increase. Daily, we receive calls from families inquiring about the availability of single family homes for rent. Transitioning a home that isn’t selling into a rental ensures the home will remain an investment, as you originally intended it to be. However, transitioning a home into a rental is not a simple task; it brings an owner a new list of responsibilities, regulations, and time commitments to consider.
As a property management company in Wisconsin, we have seen the good and bad of renters. There are many issues a new landlord must be aware of and prepared to handle. It is crucial that the owner of a rental property knows how to properly screen tenants so they acquire quality tenants that take care of the property and pay rent in a timely manner. This includes more that just checking the applicant’s credit. Background checks, rental history, and income qualification also need to be analyzed. While doing this, Landlords must also be aware of discrimination laws while acquiring and screening tenants and properly comply with them. Creating and enforcing a rental agreement or lease that is pertinent to the home owner’s property is another crucial step. These are just a few of the many issues a new landlord would face. For these reasons and many more, it is highly advised a home owner team with an experienced and trustworthy property manager when transitioning their home into a rental property. Property managers do everything form advertising, screening applicants, creating and enforcing leases, showing properties, collecting rent payments, and making sure the property is properly maintained. Property management companies are needed to make the transition from home owner to investment property owner smooth and successful. MPC Property Management is located in Burlington, WI and covers Kenosha, Racine, Rock, Walworth, and Waukesha, WI. Please visit us at http://www.mpcpm.com for more information.
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