Looking to Downsize to a Rental? Here Are the Things You Need to Consider

Many older adults find themselves in a situation where downsizing makes sense. Reducing costs associated with owning and maintaining a house may be in order. You may want less house to clean and yard to tend to after the kids fly the nest. Or you may prefer to live in a tighter-knit community with more amenities like social clubs, fitness classes, and group activities.

Whatever your reasons for moving, if you're considering downsizing to a rental, a little reflection and planning are in order first!

Your Emotional Preparedness

If you're not 100% committed to moving yet, take a little time to process the emotions associated with such a significant change.

Reach out to family and friends, speak to others you know who've already made the transition, and utilize the resources at your disposal for gathering information.

Sit down and list the pros and cons of staying where you are vs. downsizing to a rental. After you've made a list, you'll likely find the pros of downsizing will motivate you to start the ball rolling!

Finances

Finances are usually the most impactful variable when it comes to any big decision in life, but that's especially true when planning a move. First, speak to a realtor and establish how much you'll realistically get for your home on the market.

Renting after you sell means you'll keep the profits from selling your home, but some of that income will go toward costs you may not have previously thought of.

Rental deposit fees, application fees or additional pet fees are often associated with renting. You'll probably also need extra money to move, rent a storage space if necessary, and purchase things specifically for the new place, like smaller furniture or appliances.

And don't forget to estimate the monthly expenses you'll need to budget, like utilities, internet/cable, and electricity. There are some expenses (like municipal trash collection) the rental property will likely pay. If you’ve committed to a lease, consult your contract for information on precisely what expenses you will and won't be responsible for.

Think About Your Lifestyle

Downsizing to a rental may also mean making minor adjustments to your daily routine. Consider things like transportation and the proximity of shopping, healthcare, and recreational activities. If you’re planning on moving somewhere for your retirement—such as Florida or Arizona, think about adjusting to a new city as a renter. Look for apartments in Tampa, Orlando, or Mesa, all of them great retirement destinations, or consider even moving to a bigger city if that’s something you want. With renting, you have a lot of freedom of movement, so you can easily explore new places.

It may also mean finding a place that can provide a smaller-scale alternative to the comforts that come with extra space, like having a garden or a fenced yard for your pet.

There are plenty of places with amenities to accommodate your lifestyle preferences; all you need to do is make a list of must-haves and search accordingly! The goal is to find a place to enhance your lifestyle and allow you more freedom to do what you love.

Think About the Future

How long do you plan to stay in your new rental? If you're planning on staying for a long time, or even permanently, you'll want to ensure it's a place you can grow older in comfortably and rent safely as a senior. Does it have stairs? Is it easily navigable if you need a cane, walker, or wheelchair down the road? Thinking about these things now will save you the potential hassle of picking up and moving again if your physical care needs change.

Consider a Timeline

Moving is a big project, but successful downsizing to a rental requires adhering to a different kind of timeline. When determining one, consider how much time you'll need to comfortably:

• Prep your house for sale.

• Close and begin cleaning out closets, cabinets, organizing, etc.

• Sell or give away larger belongings like furniture and appliances.

• Pack up and clean.

• Finalize your rental contract and do a thorough walk-through of your new place.

• Move your belongings to your new home.

Give yourself time to do all these tasks comfortably with as little stress as possible!

Are You Ready to Say Goodbye to Some of Your Belongings?

So you've found the perfect place to downsize! Before loading any trucks, you'll need to go through your belongings and part with some of your things.

That likely means the ol' "keep it," "donate it," or "throw it out" box system is in order. This process may be harder than you anticipate, but once you get started, it'll feel good to let go of those things you no longer need!

Enjoy the Journey

Change is challenging, but it can also be exciting! Remember the things you're gaining when you downsize. For some, downsizing offers the financial means to relocate to an area they've always wanted to live in, like on the beach or a golf course. Many use the freedom from no longer caring for a single-family home to travel. Some enjoy the amenities of a rental community they may not have had before.

No matter what benefits you reap, enjoy this new phase and the possibilities it comes with!