Homeowners' Dilemma = Renter's Delight

People mulling a relocation, whether it’s for a new job or to moving to a place with better job opportunities, face a dilemma — sell their home at a loss, or not move.

That’s bad. This nation needs for people to go to where they can find fruitful employment — that’s good on an individual level, and for the economy as a whole.

I’ve written about some signs that more people are willing to bite the bullet, sell their home and relocate for work.

And now there’s an indication of a willingness to take a different step to facilitate a relocation: The Wall Street Journal has an interesting article about how more homeowners are willing to rent out their home. Even if the rent they’ll make is less than the mortgage, they hope that home prices will rebound enough in the longer term to offset those rental home costs.

Renting out a home is not an inexpensive affair.

If you’re using a property management firm to oversee the property, you’ll pay them a fee from 3% to 12%, and you’ll pay more to insure the place (about 25% higher than a homeowners policy). You’ll also still have the costs of upkeep, and the rental income can affect your tax situation.

However, more are willing to take on those expenses to get on with relocating their lives.

And it’s great for renters — they now have more options beyond just an apartment.

(Read more in’s rental home section.)

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