(Boise, Idaho) August 22, 2016 – Ada County’s real estate market is hot, hot, hot! Homes have been selling in a matter of days, not in three to six months like they do in a “normal market.” In addition, home sales prices are at record highs. The median home sale price in June of 2016 in Ada County was $253,000, a 10% increase from last year.
This hot real estate market may make some people want to sell their homes to take advantage of the higher prices, but Mike Louie, Realtor with Boise Real Estate Pros says that this might be the best time to turn your existing house into a rental instead.
Rental vacancies for single family homes in Ada County were at 2.7% in July, one of the lowest vacancies rates ever. In addition, rents are on the rise as more people move to Ada County looking for places to live in. The average rent in Ada County is $1368 a month for a single family home. Source: http://www.weknowboise.com/rental-market-vacancy-rates
“If your home has a bit of equity in it, it’s an excellent time to turn it into a rental, “says Louie.
Louie also says that it’s gotten easier to for current homeowners to get lending for a new home if they are putting their existing home up for rent.
Louie offers the following tips to homeowners who are interested in turning their current home into a rental.
- Work with an expert: Work with a realtor who specializes in leasing who can help you properly value and price your home for a rental property.
- Lease agreement: Your realtor or property manager or lawyer can also help you put together a lease agreement that is legal and binding. You’ll need to understand what you can and can’t have in your lease.
- Money in the bank: Have a cushion of at least 5 months’ payments in the bank for unexpected maintenance and repairs on the rental.
- Insurance: Make sure you have the proper home owners’ and liability insurance on your property. Most homeowners’ policies will not cover your property if you turn it into a rental. You need to get a special policy for that.
About Boise Real Estate Pros:
Boise Real Estate Pros was established by Boise realtors Mike Louie and Jennifer Hickey. They have over 40 years of collective real estate experience having gotten their start as real estate appraisers.
Mike and Jennifer have earned Top Producer awards for years 2012- 2015. They are New Construction Pros, First Time Home Buyer Pros, Property Management Pros, and Listing and Marketing Pros. Boise Real Estate Pros is brokered by Boise Premier Real Estate. For more information, go to: http://boiserealestatepros.com.