According to a study published by homes.com, more homeowners are renting spaces in homes for income value. This is not just a small percentage, according to the study, which states that 51.2% of homeowners said that they had to rent out space in their home.

Renting has become a part of the real estate culture within the United States. Homes have continued to become more expensive not only to purchase but to maintain, renting has become not only a trend but now a way of life.

When most people shop for a home, they do the math in order to figure out what that home will cost them to purchase. But what is not figured into that price by many homeowners is the cost of maintenance, which also includes taxes.

According to Freddie Mac, home buyers should budget up to 4% of the property value in annual maintenance costs. That translates into $12,000 a year for a $300,000 home. And as Counsellors Title readers know, the average home price in America now stands at $312,000. So as homes appreciate, so does the cost of maintaining and keeping those homes. So before you get up in the morning on the first of the month, already your home will cost you $1,000 that month. Of course some months are less but certain events occur, such as the replacement of a water heater, roof replacement, and of course painting every four to five years.

Some basic expenses required to operate a home can include:
Annual property taxes
Landscaping
Hazard insurances
Heating and electricity
Water
Sewer
Pressure washing roofs
Internet service
Replacing appliances

So as the average home appreciates 5 to 6% every year, so does the cost of maintaining a home increase, most likely to a proportionate measure.

What gets rented in the house?
• Bedrooms 43%
• Finished basements 27%
• Detached guest house 17%
• Garage apartments 14%
In addition, 11% of millennials say that they would get a roommate to help pay home bills, according to Redfin, and 10% said that they would rent their space on a home rental site such as Airbnb.

In such states as New Jersey, where the average property tax exceeds $8,000 a year, over 22% say they are renting their houses to help pay property taxes.

Finding a Renter
Owners are relying upon the internet in many cases to find the potential renter for a room, home or basement. Here’s where they go to find their candidates:
• Craigslist 18.4%
• Social media 30%
• Rental website 19%
• “For Rent” sign 16%
• Personal website 5%
Homeowners basically have been successful in renting out their extra space, and 80% said that they had a positive experience renting to the people that they had.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!

Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/