Tips for navigating the month-to-month rental market
Selling a home in a low inventory market is great, but not if you can’t find or get into your next home right away. If you are having to vacate before your next home is secured, there are more options than overstaying your welcome in a guest room with friends or family. If your houseless situation stretches from weeks to months, staying in a hotel may be very costly.
Here’s some other temporary housing options to consider.
Rent back your own home
It is worth asking the new owners that purchased your home if they plan to move in right away. If not, you could become a renter in the home you formerly owned. Owners may need to sell their home, or move a long distance, creating some window of rental opportunity.
If the buyer used a 1031 Exchange, purchasing your home to replace another investment property they sold, they likely cannot move in right away. Though there are exceptions, generally investor/owners must wait two years before moving into their own investment property, or risk significant tax consequences.
Reside at an Extended-stay hotel
Long hotel stays can be expensive, but many have accommodations for long term stays at significant discounts. If your overlap is just month, living at a hotel may be a fun adventure. Look for an extended stay room with either a full kitchen or kitchenette and a desk and/or workspace. You might even get some perks like a fitness center, pool and free breakfast. Staying a month may reduce the usual rates by around 30%, depending on the time of year.
Don’t overlook the long-term rental market, even if you need a place for just a month or two. You may be surprised to find how many listings there are for a furnished place that are willing to rent on a monthly basis. While the rent may be a little higher, its far cheaper than a hotel, with much more room.
Check with a property manager that oversees long-term rentals. Often there are people that have their home for rent short-term while a property is for sale.
You can find rentals with flexible lengths of stay on sites like Airbnb and Homeaway. But don’t assume you’ll pay a whole lot less. According to one survey by Pricenomics, renting an apartment on Airbnb will cost you just 21% less than renting a hotel.
Which type of temporary housing or rental is right for you?
If you are a couple needing temporary housing, the options may be a little more flexible. Bigger families need more space, so likely a month to month rental on a home or apartment is more practical. Also think through essential requirements. Do you need a full kitchen? How about storage for boxes of personal items?
A little early planning when you are still in escrow will go a long way to securing temporary housing and knowing you have a place to rest your head at night.