Sell or Rent? What to do with your home when moving into Assisted Living
Posted by Mike McQuinn on January 8, 2016 | no comments
If you or a loved one have made the decision to move into Assisted Living, the next question is usually, what to do with the existing home. This can be a tricky subject fraught with many emotions due to the memories a house can hold.
When weighing all options however, the biggest consideration usually boils down to finances.
- Do you own the house outright?
- Do you still owe money on it, and if so how much?
- Do you need the income from a sale to help cover the cost of the new living situation?
Decisions for Homeowners
If you own your house outright and think you can collect enough rent to cover your new cost of living expenses, then that is surely an option. Keep in mind however that one of the perks of assisted living is a simplified, more relaxed lifestyle. Unless you want to deal with the hassles of finding renters and managing the monthly business of being a landlord, you will need to budget in the cost of a good property management company.
You may be able to find a family member to do this for you, but it’s a big job, and they should still be compensated for it. If you do decide to go this route, you can always try it for a period of time and if it ends up not working out, you can make the decision to sell. If property values are increasing in your area, this might end up being a wise financial choice.
Getting Advice from an Expert
A trusted local realtor is a good place to ask for advice. They will be able to appraise your current home and advise you on value and competitive rent prices in the area if you choose that path. This is always a great place to start when gathering information to help in your decision making. They will be able to advise on any home improvements that should or shouldn’t be made if you are planning on selling. Some improvements are worth the return on investment, while some can be left and the money saved. Ask close friends and neighbors for the name of an experienced realtor you could interview.
If you do decide to keep your current home, be sure to add it into your will, or even better, a trust, so that your loved ones will be able to either sell it easily, or continue to use it as income property. An attorney can discuss your options on this matter.
There are definite pros and cons to each decision and they will be different for each situation. Take your time, ask some experts, see how it all pencils out and make the decision that is right for you and your family. Once your decision is made, you can look forward to relaxing and enjoying your new, simpler, worry free lifestyle.