What to Do With Your Home When Work Relocates You

(October 9, 2013)

relocationIf you have a great job that you love, count yourself among the fortunate. Of course, sometimes, the call of duty means going to where the job needs you. If work relocates you, and you own your home, you have some decisions to make.

What is the best option for your finances, your needs, and your sanity? You might find that relocating is actually a good thing. We’ll look at some things you can do when you have to move and still deal with your current home.

Consider Renting Your Home

If you are going to be moving for a certain period, such as six months or a year, or even longer, it might be a good idea to think about renting the property. This way, you will still be able to hold onto your investment. When you are determining the price to charge for renting the property, you should check out some popular sites such as rentometer.com, zillow.com, and craigslist.org. These sites will give you an idea of what homes are renting for in your area. When you look at those other homes, make sure they are comparable to your home. If your home has two bedrooms, don’t compare it to a home with four or five bedrooms in your area!

When you determine how much you can charge for rent, compare that with what you are paying for your mortgage, property taxes, insurance, and association dues (when applicable). If you are able to make more or at least break even, then renting your property might be the best choice. Even if you calculate that you may be losing a couple hundred dollars each month, the way property values are increasing, renting still may be a good choice. Check DQnews to see how property values are increasing in your area as compared to last year. You may be forking out $200 of your own cash each month to keep it, but in reality, you could be making thousands back every month.

Since you are moving and will not be in the area, you need to have someone who can watch over your property for you, and perhaps even collect the rent. Hiring a property management company can be a good choice. They can ensure your property stays in good shape, take care of any issues that arise on the property, and monitor rent collection each month so you can take care of your own bills. Having a good property management company working for you can take away all of the stress of trying to run a property on your own. Just make sure you are still making enough in rent to hire the company!

When Renting Won’t Work

Renting your home might not be an option for many reasons. You may consider it too much of a hassle. If you aren’t coming back to the area in the near future, you might want to buy another property in your new location. Selling your home can help you get the money you need for your down payment on a new place in the area your work relocates you to. Keep in mind though that selling through an agent could take a couple months. Instead, you may find it is easier to sell to an investor. The deal can close in as little as ten days. This way, you can sell and not have to worry about any loose ends after you move.

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Jennifer Shenbaum

Written by Jennifer Shenbaum

Jennifer Shenbaum is a real estate investor based in Southern California. She is a veteran of the housing market crash of 2007. Best of all, she offers free remodeling ideas to all who ask.

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