Renting Out Vs. Selling Your Elderly Parent’s Home
When the house becomes too much for Mom or Dad, what should you do with it? It can generate money to use for long-term care, but is selling, renting out or getting a reverse mortgage the best option for that?
Your first instinct, especially if the move is the unanticipated result of a health crisis, may be to sell the house, even though you know the market isn’t good. But you may do well to stop and think first, Florida realtor John Mike tells NPR.
When a crisis hits — say, dad dies and mom needs to move in with a child — the family may see the house as a source of immediate cash to help pay for the move and more care. “It’s found money,” he said. “They don’t care if they get $20,000 less than they would” by being patient. This rushed selling has been contributing to low prices in South Florida, he said.
Mike said renting out a house to create an immediate monthly stream of cash can be a better option than panicked selling. “I’ve seen people who have been very happy with renting out the house, and it’s better for the neighborhood because the house is occupied,” and the home-price comparisons don’t get driven down in a rushed sale, he said.
What about getting a reverse mortgage? That’s another option to think carefully about before you jump, the article points out. OurParents has also covered that debate here.
Leigh Ann Otte is a freelance writer who specializes in health and aging issues. She covers finding and paying for senior care for OurParents. If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.