RENEWING LEASE OR CONSIDER A PURCHASE?
September 8, 2018
Tenants often tell me that it’s hard to convert from leasing to buying because our market requires tenants to renew so early (sometimes 8-11 months before expiration). With many leases in Bloomington, Indiana, the lease cycle goes from August to August, so September/October is a perfect time to consider options for the following year. Although you are not ready to buy today, meeting with a Realtor to learn about the process and get some guidance is a must. A Realtor will recommend seeking pre-approval for a mortgage and this will help determine what you can afford and know how much of a down payment you’ll need. You’ll also learn the time line, so backing up the lease expiration date, for the pending sale period and considering the length of time for house searching, the Realtor will help you know when the time is right. Starting early also allows the tenant become familiar with the market pricing and conditions. To learn more, you can schedule a time to meet with our Team of Agents by calling 812-331-7353 or emailing Info@CallChoiceRealty.com.
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Although you may be renting a place for a short time or a year or two, having a rental can feel so temporary. There are many ways to create a more permanent feel without spending a bunch of money or making unapproved alterations. Start with decorating. One of the easiest ways to make your rental feel more homey is to decorate and accessorize. By adding plants, candles, throw pillows and other home decorating items, you can quickly create a warm and inviting space. If you're not permitted to put nails in the walls, you can use products that are temporary, such as double-sided tape or non-sticking hangers for wall art. In addition to the inside, you can also consider adding some decoration to the exterior. Whether it's only a simple welcome mat or a welcome mat along with a door wreath, flowers or holiday decorations, adding to the exterior can make your entry more inviting and cheerful.
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Combining the effects of the pandemic with the housing shortage, the rental market is as tough as the sales market right now. We are experiencing the highest retention in history with tenants choosing to renew their leases rather than move to a different rental. The housing shortage has also caused the rental rates to rise, some seeing more than 5% annual increase. What does that mean for the future rental market? Some forecasting shows that the rental market will continue seeing rental rate increases for the next few years while some believe the market is due to level off in the next year. Until local, state and federal governments can help the private sectors in creating more affordable housing and less government restrictions, Bloomington will continue to struggle with the high cost of living. Although it's a Seller's market right now, it may be a good time for Tenants to consult with a Realtor to see if it is a good time to consider purchasing. Studies show that lifetime wealth is substantially better for those who own real estate versus those who have rented. To learn more, contact our office for a free consultation.
