Since 2020, the real estate market has favored sellers, showing consistently high demand and low inventory across the country. As a result, it hasn’t been unusual for sellers with Beverly Hills homes to see their properties turn over quickly, selling for well above the asking price.
But a seller’s market may dissuade some from putting their house up for sale because of the difficulty they could face buying a new home. That’s why many are turning to Beverly Hills real estate rental properties. By selling and leasing at the same time, they’re able to take advantage of the uptick in market prices while not putting all their equity into another highly-priced home.
There are many reasons why renting is better than buying, especially in a seller’s market. You can say goodbye to repair costs and updating your appliances when you rent from a landlord who covers those fees. Many apartment complexes have additional amenities for tenants to enjoy, like clubhouses, exercise rooms, and pools. You may also be in a more ideal location closer to shops and restaurants.
You also won’t have to put a down payment on your rental property, which is good news for your bank account. Renting gives you more flexibility to strike when the market shifts back towards favoring buyers. You’ll be able to move more quickly than you could if you buy another house.
First, you’ll want to research the area and get a feel for how much other Beverly Hills homes are selling for. That can give you a general idea of how much you might be able to get for your home. Take time to review how much equity you already hold and how much of your mortgage loan is left to pay off. Since you’re not putting profits from your sale into a new property, you’ll want to make sure you can get as much equity as you can before you sell. That money will go straight into your savings or future investments.
You’ll also want to think through what you’re looking for in a rental property. Where in Beverly Hills do you want to move? Think about the kinds of amenities at the top of your wish list, and be sure to consider any apartment or condo association fees and insurance options.
As you’re researching, consider finding a local real estate agent who understands the Beverly Hills real estate rental and residential housing markets. An agent can give you a more thorough analysis of the market and when you should plan to sell and move.
Typically, if you’re looking to sell your home quickly, July is the best month to do so in California. If you want the best price for your home, March is the month to list it. However, the right time to sell can differ from city to city. A real estate agent can give you insight into your specific neighborhood and help you maximize your potential earnings.
When you start looking into Beverly Hills real estate rental properties, expect high levels of competition. With the increased demand for homes over the past two years, there haven’t been enough properties listed to keep up. As a result, buyers have struggled to find homes to move into from the few rental properties available.
Plan on competition and move quickly on properties that you like. From your ID to your credit score, have all your paperwork ready to send over to potential landlords. When properties pop up, expect that they’re going to receive multiple offers. You may end up offering to pay a higher monthly rent than what was originally listed online to secure the rental you want.
The high competition for Beverly Hills homes and rentals right now means you’ll want to have a rental property lined up before you sell. You don't want to end up in a situation where you’ve sold your house and have nowhere to live.
So, give yourself at least 3-6 months to secure a rental property. That means if you’re planning on selling your house in July, you want to start looking at rentals no later than February. Work with your real estate agent to make sure you’ve put together a realistic timeline. It may mean waiting to sell your house until the following spring or summer, depending on how long it takes for you to find a rental.
The good news is, if you do find a rental and are ready to move, you most likely won’t have to wait long for your house to sell. Since the pandemic, real estate sales in California have been turning over relatively quickly. In 2021, the average time a house spent on the market in California was around 70 days, selling at a rate just over 13% faster than the national average.
Determine the average number of days a house stays on the market in your neighborhood. Your real estate agent will likely have this information on hand. Use this average to determine when you should list your house. Again, if you want to sell by the end of July, count back 70 days and list your home in the middle of May.
By moving into a rental, you can take advantage of the current seller’s market without the added struggle of putting all your equity into another home that sells well above the asking price. If you’re interested in selling and finding Beverly Hills real estate rental properties at the same time, contact Jordan Pollack.