Should I Rent My Property If I Move Into Assisted Living
There may come the point in your life when you need to move into an assisted living facility. Assisted living facilities are for those who need long-term care and help with their daily activities. Residents in assisted living facilities have independence and often on-site conveniences, transportation, and emergency support. However, assisted living facilities are not covered by Medicare which means the cost can add up quickly. According to the 2020 Genworth Financial Cost of Care Survey, the average cost of assisted living is $4,300 per month.
Many seniors may not be able to afford this amount each month, and it can be a rude awakening to find out Medicare does not cover long-term care. Before you officially move into the assisted living facility you have been inquiring about, you will want to think about the cost and what will happen to your property once you move. Renting your property may be an option for you. Several benefits can come from renting your property while you no longer live there.
Source of income
Renting your property can be a source of income for you. Rental income can be taxed differently than employment income; thus, it can be more appealing to rent the property than sell it. You will have little to maintain on a day-to-day basis, although you will need to know who to call if repairs are required.
A vacant home can be a potential hot spot for squatters and even vandalism. Instead of dealing with an empty property while you are in an assisted living facility, you may want to rent it out. Renting the property can give you a sense of security and ease as you know someone or a family member is maintaining it. You can create a contract that states specific requirements and set the lease timeline, which allows you to know how long the renters are looking to stay.
Flexibility on when you want to sell
The market may not be the right time to sell, or you might not be ready to sell your home officially. Renting the property gives you flexibility on when you want to put the house up for sale. If you time it correctly, you may profit from the home and use it for other essential things.
Help with mortgage
Renting your home allows you to set the desired monthly rent. You can own the house but set the rent to equal the mortgage you pay on it. This means you can use the money you would be paying for the house towards your assisted living facility or health insurance.
Disadvantages to renting your property
Renting your property can also have disadvantages that you will want to contemplate before renting your home. As a landlord, you must be available to the tenants if unexpected repairs are required. You also need to know who to call for each kind of problem that can occur.
Once the tenants’ lease is up and they move out, you will need to find new renters. Finding new renters can be easy or difficult depending on where you live and how much you are asking for rent. You may need to lower the rent if you can’t find potential tenants right away.
Before you move into an assisted living facility, you will want to decide what to do with your personal belongings and property. It is not easy letting go of a home you have resided in for a period. Renting your property can be an option if you are not ready to sell the house. Laying out all your options and going through the advantages and disadvantages of each can help you prepare for your transition.