Almost half of homeowners agree to rent their house
As short-term rentals continue to grow in popularity, search by Realtor.com found that an increasing number of young homeowners are willing to rent out part or all of their homes to generate additional income in order to save or invest.
Overall, survey respondents said 32% of homeowners have experimented with different approaches to earning extra income from their properties, including renting out the residence while they are on vacation. Additionally, 85% said they would consider building additions to their home to rent it out for additional income, while 53% of homeowners said they would rent part of their home to increase their savings.
The survey also found that while most homeowners use traditional methods, such as finding a roommate, to increase their income, a small percentage employ creative tactics such as renting a swimming pool (6%) or renting out. their garage or parking space (7%).
âAs the next generation of home buyers embrace carpooling and short-term rentals, it’s only natural that they are starting to view their greatest asset – their home – as a potential source of income,â said George. Ratiu, Director of Economic Research, for Realtor.com. “For people looking to take advantage of the sharing economy, in addition to traditional approaches, it may be worth exploring creative solutions, such as listing your home as a vacation rental when you leave town, or renting out your outdoor space or pool. Even a small amount of income each month can multiply over a year or more and can turn into bigger returns .
The survey also found that 69% of homeowners would rent part of their home if there was a separate kitchen or entrance, while 32% had previously rented a space or feature of their property, most often taking a long-term contract. roommate (10%), or Airbnb (8%).
While almost half of homeowners (49%) are interested in renting out their property, one of the things that keeps more homeowners from renting out their homes is the lack of a suitable tenant they can trust.
“Landlords have a higher preference for renters in their own social network, with 52% of them saying they would feel comfortable renting to someone they know,” the study says. . âA third of owners would feel comfortable trusting someone who is not in their network, but who could be controlled either directly or through a third-party app. And having a long-term tenant (six months or more) is more preferable to a short-term tenant (less than a month). Interestingly, 16% of homeowners said they would feel comfortable renting to anyone if they needed the income. The responses are relatively consistent across generations and places, with some nuance. Younger landlords in urban areas are more comfortable with short-term tenants.
Ratiu continued, âIt’s important to keep in mind that while today’s sharing economy may seem easy to generate rental income from your home, there are many factors to consider before take the plunge. You should be familiar with the rights of tenants in your state and locality, and understand the restrictions of the community. Along with this, making sure that tenants have been properly vetted, and that home insurance will cover any potential damage, are additional things to consider before inviting tenants into your home.
Realtor.com gleaned its data from HarrisX, a market research and consulting company, which polled 3,026 respondents over a three-day period in July.
A complete copy of the Realtor.com survey can be found here.