It's a tough economy out there right now, especially for the real estate market. Across the nation there are thousands upon thousands of homes sitting empty, and many of them have been and will continued to sit empty for a good long time. Some of those homes are very nice, in good neighborhoods.
So why should those places sit empty if you need a place to live?
No, I'm not talking about squatting. That's illegal and can get you arrested.
What I am talking about his home tending.
How it works: The basics
The way home tending generally works is you agree to live in the home and pay a basic, cheap rent. How much? You'll have to work that out with the person renting the house to you, but I've personally paid rents of only $600 a month for a $700,000 house.
Who is it that rents the house to you? That will vary. There are home tending associations or businesses in some places, and they will often work with you to find a house. In other areas, sometimes you can hook up with a real estate agent or even a bank that has lots of empty houses for sale.
Personally, I have checked lists of homes that are nearing foreclosure, and I've then contacted the home owners themselves. Most times, when people get a letter from the bank saying they are being foreclosed upon, the people pack everything up and flee. But foreclosure doesn't work that quickly. It usually takes anywhere from two to six months, sometimes longer, before a foreclosure is completed, meaning it's auctioned off (usually at a county court house, but sometimes elsewhere). That's two to six months, sometimes longer, a house is sitting empty with no one living in it.
Generally, you will not sign a long-term rental agreement with a home owner or with a home tending company, or with a bank. What you will need is a lease agreement, one that stipulates the amount of money you will pay, how often it will be paid, and the amount of time you will be given before you will have to vacate the property once it has been sold or auctioned off.
Why would anyone rent you a house for cheap?
When I've contacted the home owners, usually they are thrilled to have someone living in the house and renting from them. To them, it's free money. They've left the house, they are waiting for the hammer to fall, and usually they need the money.
Again, there are multiple ways home tending can be worked out. If you live in an area that has a home tending organization, check with them first.
Also, real estate agents and banks want to be able to sell a house, whether or not it's being foreclosed upon. Houses that are taken care of, and houses that have someone living in them, tend to sell better on the market and look more appealing to potential buyers.
What's expected of you
For one, you need to take care of the house, including mowing the yard, keeping the place clean, doing minor repairs, etc.
Why?
Because the place has to look good, more than just presentable, to potential buyers.
The downsides
Some might consider home tending taking advantage of those who are having their home foreclosed upon. You're not, not really. You are actually doing them a favor. You need a cheap place to live, they need money. Why not use this property to satisfy both of your temporary needs?
Of course, there are many downsides to home tending.
First off, you have to be able to move at a very short notice, sometimes a week or less. Sometimes you might know that moving time is coming, but often times you will not. If you keep up with foreclosure dates and the like, and if you happen to work in real estate, is pretty easy to know when you would have to leave a house in which you're home tending. But if you don't follow such things, you might just get a phone call from a real estate person or a bank representative saying, "Hey, the house is being sold this weekend!" That means you've got to move.
Also, don't expect to stay in the house for very long. I've home tended several times now with my wife; one house we were in for only five weeks, yet another house we lived in for 9 months.
If any major repairs are needed done, you are out of luck. There is no landlord to pay for big fixes. So, you either fix it yourself, which could cost lots of money, or you move sooner than expected or try to live around whatever major catastrophe has happened, be it a dead water heater, a flooded basement, a tree through the roof, whatever.
Moving often brings its own challenges. You'll have to change your mailing address often. You'll have to change your driver's license often, and anywhere else it's important for your address to be listed correctly, such as at work, with your bank, credit card companies, etc.
If you have school-age children, home tending is not likely for you because it would be more than a chore to have to make your child change schools often, unless you happen to be able to do all your home tending in one school district.
In closing
Home tending has some pluses, but it also brings with it a share of negatives. For a couple without children, and who possibly have jobs that allow them to work from home, home tending can not only help with cheap rent, but it can also be quite adventurous by allowing you to live in different homes, some you possibly would never be able to afford normally.
Just don't forget the downsides. And again, I'll suggest that if you are interested in home tending, check with any local home tending services in your area before trying to do this on your own. Even if there's not such a service in your area, perhaps you should contact a home tending firm in another area and ask them how you could get started. At the least, check out a few websites to learn more.
Also, keep in mind that any home tending companies, banks or real estate businesses you do business with will likely want to do a background check on you, perhaps even have you bonded.
Some home tending links
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