Articles And Announcements
Is your current
renter moving because they purchased a new home?
|
Dear RSI Client,
As I talk
with different property managers, they consistently discuss
turnover due to new home purchase.
When I worked as a district manager I was also faced
with this same issue. It’s
impossible to talk someone out of moving once they’ve
purchased a new home; the trick is to influence them before
they buy. An
aggressive retention plan can sway individuals who are
contemplating a new home purchase.
I found a great article from the National Multi Housing
Council about the myths of home ownership.
I hope you are able to use some of this information as
a retention tool. I
listed a few of the top myths:
MYTH:
OWNING A HOME IS A HUGE TAX BREAK
Reality: The
tax advantages of owning are often not as large as is commonly
believed. If your mortgage interest and other itemized
deductions do not add up to more than the standard deduction
(currently $7,200), you don’t get any tax advantage. That
means the mortgage interest deduction is irrelevant for many
lower- and middle-income owners who don’t itemize. For those
who can deduct their mortgage interest, it still may not be
worth it for them to pay $1 in mortgage interest in order to
save 28 or 33 cents in taxes. Once you consider the additional
costs of ownership – such as home repairs and property taxes
– the tax benefits seem even less important.
MYTH:
PAYING RENT IS THROWING YOUR MONEY AWAY INSTEAD OF BUILDING
EQUITY
Reality: In the
first five years of ownership, nearly 90 percent of the money
spent on monthly mortgage payments goes for interest. That
means that most of your mortgage payment is also "money
down the drain," and not money building equity. On top of
that, the cost of buying and selling a home can total 10
percent or more of the property’s price. Given that nearly
half of all homeowners move in the first five years, the fact
is that most would have saved money if they had rented.
OTHER
REASONS TO CONSIDER RENTING
·
Maintenance-free,
hassle-free living
·
Superior amenity
packages that rival and often surpass single family homes
·
Access to new
technologies that are unaffordable or unavailable in single
family homes
·
Ability to
relocate for job opportunities without having to incur the
cost of reselling a home
·
Convenient access
to transportation, employment, retail and entertainment
·
Organized social
opportunities with fellow residents
I hope you
find this information to be of some value.
It could easily be incorporated into a newsletter or as
part of your renewal campaign.
If you need anything or have questions about this
article, don’t hesitate to give us a call, my team and I are
always here to help.
Sincerely,
Jeff
Malone
Regional
Marketing Director
Rental
Services Inc.
|
