Brave New Market for Landlords

Renting out the house is becoming an economic necessity

Economic necessity is driving more and more people to search out low interest loans and emergency cash loans. At the same time, the growing pressures of foreclosure and difficulty paying bills — along with changes of opinion about how to live in an economic downturn — are forcing owners to rent out their homes rather than occupy them.

The neighbors don’t appreciate it

Because of the tightening credit market, many former homeowners who can't afford a mortgage are being forced to rent. At the same time, homeowners who need to relocate but can't sell their houses – or who have vacation properties they can't sell – have grudgingly become landlords. Across the country, neighborhoods and municipalities aren't sure how to deal with the new rental economy. Towns and subdivisions are barring their doors, arguing that tenants usher in neglect, misbehavior, and even violent crime.

Many communities governed by homeowner associations limit rentals or ban them altogether. Some neighborhoods have eased these restrictions in order to keep homeowners out of foreclosure. But others have responded with even stricter rental rules in an effort to protect home values.

Rents are down, and that’s good and bad

The increase in rental properties is driving down monthly rental payments. Landlords may not welcome the news — unless the landlords are renters, too — but renters have some bargaining power in the current market. There is presently a nationwide glut of unoccupied condos and houses. The rising rental-vacancy rate plays an obvious part in falling rents, but rising unemployment rates are also an important factor. Young adults are normally a large segment of the renter population. But today, many young adults are unemployed and staying with family or finding roommates instead of renting homes of their own. ... click here to read the rest of the article titled "Brave New Market for Landlords"