Lengthy housing recovery predicted

Veros Real Estate Solutions released its market forecast for the 12-month period ending September 1, 2012, which predicts a 1.5 percent depreciation in the national housing market over the next year, indicating a very slow recovery. The key discriminators holding back certain state housing markets from experiencing recovery are the high unemployment rate and the large foreclosure inventory.

The forecast also anticipates the housing market will not experience another dip, and expects a maximum of five percent appreciation for growing housing markets, and a five to six percent decline for weaker markets in the next year. One way many homeowners are dealing with declining home values and weak home sales is converting their homes into rental properties.

Investopedia recently identified things homeowners should consider when creating a rental property, including permits and finding a tenant. The source reported that a permit is required for safety purposes in order for a property to be considered a rental. A local government inspector will typically check the property for safety hazards before issuing the permit, which can often be expensive but necessary.

Once the property is ready, owners should review the Fair Housing laws to make sure they are searching for and selecting tenants in accordance with federal law. Not only can owners not discriminate when approving a tenant, they must run a credit check to see if the renter is able to make their monthly rental payments. Landlords should consult with an attorney to help draw up an application and contract to prevent any legal problems down the road. 

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