Keep Rent or Sell : What Seniors Can Do With Their Old Homes
By Jim Vogel, Elderaction.org 11/7/2019
Seniors face an interesting dilemma when they’re forced to leave their home. Whether moving for practical reasons, health concerns, or monetary purposes, seniors have to decide what to do with their old properties. This isn’t an easy decision as the move is often forced by circumstances against the will of the senior. When you throw an emotional connection to the home into the mix, things can get really complicated. To help make this decision easier, here are some choices seniors have when handling the decision.
Put the property on the market.
Seniors who don’t mind selling their old home or who are in need of some cash should consider placing their home on the market. Selling their home is a great way to free up funds to put toward a smaller, more manageable home. This money could also be used to pay for an assisted living facility (assisted living in the state of Virginia averages $3,933 a month) or nursing home if a senior’s circumstances necessitate the move.
Before listing their home for sale, there are several things to do, such as cleaning, decluttering, and enhancing curb appeal. It’s also important to take note of the market in your area. This will provide a better idea of what seniors can expect to earn for their property, and can also inform them about home prices if they’re buying another property. For example, homes in Salem fetched an average selling price of $246K last month. Make sure to compare your home with those of similar value in terms of size, age, condition, location, and style.
Let the family take care of it.
Some seniors may be dreading a move from their home, not due to a loss of autonomy, but rather due to their sentimental connection with the property. The Spruce points out you can help your senior adjust by taking photos of their old home for them to remember and arranging furniture in a similar way in the new place. Many of these individuals have spent decades in their homes with countless fond memories of getting married, raising children, and growing older with a loved one. It’s not easy to let go of a home that carried all of these memories, but some familiar things and honoring memories can help.
Seniors who can’t stand the thought of losing their home can entrust it to their family instead of putting it on the market. If there’s a family member who needs a place to stay, seniors might even be able to get some monthly income by renting the property. Even if nobody lives in the home for a while, it may be enough to have somebody stop by every so often to make sure everything is in order.
Rent the property.
Seniors who want to maintain ownership of their home while still earning some income should consider renting the property. With this choice, they’ll remain the rightful owners without losing out on the potential to earn some profit on the home after they have to move out. All they need to do is find some trustworthy tenants and make sure the property is in good condition.
It may be necessary for some seniors to hire a property manager to handle their home as a rental. Although renting a home can give you passive income, there are some hands-on aspects that a senior might have difficulty with such as remodeling, emergency fixes, and handling tenant complaints. Seniors might be able to work out a deal with a family member or friend to save some money. If not, hiring a property manager can still leave room for a nice monthly income to supplement a senior’s pension or 401k payout.
It’s never easy to admit when a senior needs to leave their home for an alternative living situation. When this decision is made, seniors must also settle on the state of their old home. There are many different options to consider, and each has its own advantages. Remember to consider a senior’s needs and wants when making this decision so everyone can move forward with peace of mind.
Keep Rent or Sell Article courtesy of Jim Vogel, Elderaction.org 11/7/2019