As a Charlotte homeowner, moving into an assisted living facility means you have to figure out what you’ll do with the home you’re leaving behind. There are usually three routes you can take: leaving the home to a family member, renting it out, or selling it. There are a few aspects to take into consideration with each option, so let’s look at what they are.
Leaving the Home to Family
With this option, you’d need a lawyer so you can either transfer ownership of your home or gift it. When making a transfer, you can usually choose from three different types of deed transfers. The most popular one is a quitclaim deed as it’s faster. However, there is less protection for you from legal claims.
You can also give your home to family, and according to Market Watch, you can give it to someone outright if you plan far enough ahead and calculate your gift tax obligations correctly. Bear in mind that gifting the property can have future capital gains tax implications for your child.
While keeping the home in the family can be attractive, it’s important to note that there can be unpleasant consequences as well; transferring your homeownership may affect your eligibility for Medicaid benefits, so sort your decision carefully.
Turning Your Home into a Rental Property
The good thing about this option is that you can take advantage of Charlotte’s hot rental market to generate some steady income to offset your assisted living costs. However, according to Nationwide, being a landlord is more than just collecting rent. You’ll need to make sure you’re operating in conformance with state laws, and that means you’ll still be responsible for maintaining the property.
To make sure it’s worth it, you’ll need to determine a rental rate that covers your expenses and still earns a profit. And before you can even rent the property, it’s important to vet your potential tenants by carrying out background checks on their employment, rental, and credit history.
If all this is too much for you to handle, hiring a property manager could be your best move. To be sure, property managers don’t come cheap, but you’ll get great benefits from having them find your tenants, handle the day-to-day activities, deal with clean-up in between tenants, and, most importantly, advertise your home at the best rental rate possible.
Selling Your Home
Getting your house sold can involve quite a few steps, according to Open Door. First, determine if you’d like to use a real estate agent or sell it yourself. Then look into the prices similar homes are selling for in your area. Then declutter, clean, and bring any maintenance concerns up to speed.
Selling the house may not generate steady income, but you can use the bulk funds to pay off debts, make investments, or set a monthly budget for your living expenses.
Preparation Is Key
Regardless of which route you decide to take, you’ll need to prepare the home to go into someone else’s hands. This includes decluttering each room of your house. You would need to discard items that are no longer useful and donate those that are in good condition. For the things you decide to keep, you’ll have another decision to make. Some items can stay in the house, while others will need to be placed in storage until you decide what to do with them.
There are different kinds of self-storage options, so you’ll need to find one that’s right for you. When it comes to the cost, this can vary according to location, and prices in Charlotte can be a bit high, so be sure to search for deals. You’ve already made a tough decision about moving out of your home. There’s no need for your next decision to be stressful. When you’re deciding what to do with your home, make sure you take everything into account and do what’s right for you.
Guest blog post by Natalie Jones from Homeownersbliss.
Natalie and her husband, Jason, recently bought their first home. She hopes to make the process of buying a home less scary for first-timers by sharing what she and Jason have learned along the way.