Homeowners Becoming Landlords [AUDIO]
Whether they’re forced into it, or just want to make some extra dough, homeowners across the nation are becoming landlords as well.
Instead of selling their home when moving into a new place, they choose to hold on to their old property and rent it to others.
“In most cases, they’re going to be able to rent it for a much higher rate than their current monthly mortgage payment, so that’s proving to be a good source of income for many people,” Molony said.
For some, the scenario is viewed as a solid real estate investment, and they can easily afford to hold on to two homes at the same time. For others, renting out their old home may be the only way to bring them above water on their mortgage. Either way, these new landlords can choose to sell their former home in the future if prices spike.
“It’s part of the hangover of the boom-and-bust cycle,” Molony said.
Molony cited a “very strong” demand for rental units in the United States, particularly in the New Jersey-New York area.