It’s very common to hear that people can no longer keep up with their mortgage payments, and have to consider refinancing, a loan modification, a short sale, a deed in lieu of foreclosure, or declaration of bankruptcy. However, did you know that many people outright own their property and still cannot afford to keep it? Of course you do, which is why you are reading this article in the first place. The circumstances leading up to this point are beside the point. It doesn’t matter whether or not you’ve been left as the sole owner after a divorce and had your income cut in half, or you’ve inherited the property. All that matters is that even though you don’t have mortgage payments, you have the burden of property taxes, insurance, utilities, maintenance and upkeep.
So now that you’ve come to terms with the fact in your current situation, you can’t afford to keep your house, what can you do? Let’s take a look at some practical solutions.
3 Things You Can Do If You Currently Can’t Afford to Keep Your House
Bring in a Tenant
If the home is big enough, you may consider renting out a portion of the space to a tenant. The longterm rental income may cover your expenses and more. If you already have a basement suite with a separate entrance you may have a turnkey solution at your disposal. Some work, including renovations, may be required to make a space attractive to prospective longterm renters, but if you can afford the initial investment you can recoup the expenses overtime as the monthly rent comes in.
The challenge, is finding tenants that you can trust to respect the property, your personal space, and to pay their rent on time. Right now the Winnipeg rental market is wide open because of the multifamily residential construction over the past three years that has resulted in a surplus, so you may have to be patient for this one to see fruition. You also have to be prepared to play the role of a responsible landlord. If you’re not prepared to do that, this may not be a sound option.
Short Term Rental Market
If longterm tenancy doesn’t sound that attractive, you can consider the booming short term rental (STR) market in Winnipeg. The proliferation of Airbnb and VRBO offerings has created an entirely new revenue opportunity for Winnipeg homeowners and may work for your unique needs.
However, for all of the opportunity, there are many things that can get in the way of this otherwise practical prospect. For one, Airbnb and VRBO have very strict rules in place about condition and in-suite amenities. If your property is old, rundown, and in disrepair, it will not be allowed on their respective platforms. Also, whether or not you will be staying within the house makes a difference. While some people are OK with sharing their vacation spot with the homeowner, if the home is not outfitted with a separate entrance it won’t book all that well. If you have a place to stay (friends, family, etc.) for when the house is booked you may very well be able to earn enough to cover the monthly expense of owning the home, with just a few short bookings. But again, your property (and location) must be fairly attractive to vacationers to make this happen.
Sell It Fast
To be fair, while the options above may be reasonable, they do require that stars align, and they may not exactly be longterm solutions. The next logical option is to sell. However, given that in your current state you cannot afford to keep your home, you also cannot afford to keep it on the real estate market for months, or more. And that’s what will happen when you use a Realtor or agent. Instead, enjoy the benefits of selling your Winnipeg home without a Realtor, and use our service instead. When you sell your home to us, you get fair market value, and get paid in full within the week, with no middle-person, commissions/fees, requests to renovate/repair, or any red tape whatsoever. All you get is cash in hand and the freedom to move on to bigger and better things.
Call the shots in your life by calling us at 204.222.0022 today.