More Luxury Owners Renting Out Their Homes
March 25, 2014
More luxury home owners are renting out all or part of their sizable dwellings for reasons such as finding someone to watch their pets or to help pay the bills.
A Demand Institute survey of more than 10,000 home owners and renters nationwide, released last month, reveals that 5 percent of respondents in all markets and 7 percent in the most affluent markets were living with an unrelated adult.
With 41 percent of households in the top-tier markets indicating that they spend 30 percent or more of their incomes on housing, Demand Institute chief research officer Louise Keely says luxury home owners may be feeling the pinch of housing costs as much as the less wealthy. Keely says renting out their homes is an appealing option, given that rents relative to home prices remain high.
While these arrangements can be successful, there are some challenges, especially when it comes to putting the home up for sale. Sellers will find it difficult to unload the property if there is a tenant in the house, and tenants with month-to-month leases could be forced to move.
Source: "Landlords of the Manor," The Wall Street Journal (March 21, 2014)
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Updated: June 19, 2018