Few good options.
That’s what former Goodrich resident Ken Wood figured when his local mortgage business was no longer lucrative and he needed to relocate to Cleveland for a new career.
‘I didn’t even try to sell my house,? said Wood, a 1985 Goodrich High School graduate. ‘I’d be in a world of hurt trying to sell my house in Goodrich’I was in a spot where I was trying to sell and right now I would have taken a beating on price. I had to move and still make my mortgage payment’I did not want to go upside down given the value of homes today.?
Wood chose an option that some realtors are finding more attractive to homeowners’leasing their home.
‘Renting was not my first option, but consider the alternatives,? said Wood, who found a renter for his Goodrich property in about three days. So far it’s been a good choice.
‘It was pretty easy to lease out my house,? he said. ‘Consider a lot of people are in a position where an apartment is just not a good option. A family with a dog or kid is not always a good fit for a small apartment.?
With sagging home sales and a drop in property values, area real estate marketers are beginning to provide a service to both home buyers and sellers like Wood.
Jeff Dawley, president of Atlas Real Estate, 8491 State Road, Goodrich, said leasing a property has become more of a trend in the last two years.
‘This is a recent phenomena,? said Dawley. ‘We’ve had a lot more interest in leasing. As a real estate broker, homeowners now realize we can help them to either sell or lease a home.?
Dawley said the demand for homes to lease and the supply of property on the market is about equal.
‘We’ve had an increase of about 33 percent in our area just in the last year,? he said. ‘The cost of rentals have not gone up; however, that could change. Many people are looking at renting as a bridge between the time of negative home value to positive equity.?
Dawley said if homeowners are interested in renting a home, they need to seek an attorney for the contract and consider references.
Walt Renn, vice president and treasurer of Horton-Renn Insurance, 1839 S. Ortonville Road, said if homeowners are considering renting or leasing their home, a different policy is needed.
‘We are seeing significantly more customers renting their home now than in years past,? said Renn. ‘The key element is that no longer are they ‘owners and occupants.? They will lose the occupant side of the policy’they will need a dwelling fire policy for the property. Right now the premium price is about the same, however, that’s changing rapidly.?
Renn, who has been in the insurance industry for almost 30 years, said the average homeowner’s policy is about $600 for the Brandon, Groveland Township area compared to about $700 for a dwelling fire policy. He also recommended that homeowners make sure the renters have, ‘renters? insurance,? to cover the liability in case someone is injured on the property.
‘All the personal items inside the home should be covered if you’re renting. For homeowners, make sure there’s sufficient liability insurance for those renting your home,? said Renn.
Not only is it necessary for renters to have insurance, Wood emphasizes that finding just the right people to live in your home is paramount.
‘First thing I’d do’get a credit report. It tells a lot about someone. Look it over carefully and make sure they can cover the costs. For a home it’s typically more costly than an apartment or townhouse.?