Ronda Allen's Blog

Thinking you may not be able to hang onto your home much longer?  Are your finances keeping you up at night?  Hearing the news that the recession is over in DFW, but not seeing any help coming your own way to dig back out from the hole it created?  You are not alone.  Many families are getting by right now.  Just barely getting by.  There is no shame in it.  It is a sign of the times.  Our government knows that job creation is the answer, but that's a big ship that moves slowly, and help may not be coming for a while.  What to do? 

In 2008 and 2009, we were able to help many Prosper homeowners lease out their homes for a 1-2 year period, in order to alleviate their burden.  That answer is a much better solution than a short sale as we head into 2010, as well.  I shocked someone the day after Thanksgiving when I showed them that the home that costs them $1100 per month would actually lease for $1500 per month right now.  I leased out a 4-bedroom home on Amistad in Lakes of La Cima this year on a two-year lease for $2400 per month. 

Demand is still up for residential leases, and supply in Prosper is still low.  Most of these homes lease in just a few weeks, even if they've been up for sale for many months.  I have found a better quality of tenants are out there today.  The ones I've encountered are just normal folks trying to find a good area in which to live, and they want good schools for their kids.  Or, they are downsizing from something larger and don't want to leave the Prosper school district. 

Only one of my leases from 2009 opted to do property management.  The rest decided to manage their own properties and have done a fine job of it.  In Prosper, many of the homes are still under the manufacturer's warranty and/or residential home warranty contracts, so servicing the home while the tenant is in the house is neither expensive nor burdensome. 

Leasing can buy you the time you need to get back on top of your finances.  Don't become a short sale without considering the option of leasing out your current home.  If you are already behind on mortgage payments, then we need to move very quickly to get you up for lease.  If the bank knows you are going to lease out the house, they may work with you while we find a tenant.  I helped one family in 2009 that was four payments behind to the largest lender in our area.  We leased their house in one day.  Their lease is $650 above their house payment, so they are able to send the remainder to the lender to catch up on their back-payments.  No foreclosure is underway, because I asked the owners to speak with their lender every Monday like clock-work with updates.  The family moved to a smaller home just a short drive away, and the kids stayed in the same school.  Crisis averted! 

Have a blessed day!

Ronda

Since Spring, 2009, we've seen strong demand for leasing residential real estate in the far North Dallas suburbs.  Frisco and McKinney have added over 400 additional occupied housing rentals since March, 2009.  Prosper has added 30 occupied residences to the rental market, and Celina shows to have added 28 per our local Collin County MLS. 

Homeowners in Prosper need to be positioning their home right in the housing market.  We have some people listing lower than they should.  Be sure you have seen area comps on leases before putting your home up for lease.  Rents are rising, and we've seen some homes renting at closer to $1.00/sf.  Demand for leases in Prosper have been high - in no small part due to the reputation of the Prosper schools.  The average price per square foot lease on a Prosper home is currently at $.70/sf.  In Celina, it's at $.63/sf. 

We currently have 25 homes for lease in Prosper, ranging from just under $1000 per month up to $11,000 per month.  That isn't a lot of inventory in comparison to the cities and towns around us.  Properties are leasing in Prosper at 57 days on average, and Celina homes are leasing at an average of 58 days.  Many of these homes are being hit with multiple lease offers in just a matter of days. 

For people who just want a little relief from these economic times, leasing can be the right answer for both the landlord and the tenant.  Realtors are here to help. 

Have a blessed day!
Ronda


Ronda Allen, Realtor and Certified Purchasing Manager
RE/MAX Dallas Suburbs
www.dallassuburbs.net