GoRoundTheWorld.com - RTW Travel - Before Departure

Subletting or Renting Your Residence

A good way to maintain possession of a residence while at the same time offsetting some its cost during your RTW journey is to sublet or rent it.

There are a number of things to consider when such an option is available to you:

- What restrictions, if any, are placed on the terms you can offer a potential sublessor by your building management, condo or coop board, local government, or bank?

- What will you do with valuable furnishings or other items which you would like to store while renting your residence to someone else?

- Is there a market for subletting or renting a furnished residence in your area?

- How will you screen potential renters or sublessees?

- How will you handle issues which may come up with your tenants or subtenants while you are on the road?

- Are you able to offer a term that coincides closely with your prospective travel dates? If not, will you be able to make alternative arrangements for yourself when you return, or will you be able to carry the cost of a residence that is vacant for part of your trip?

- How will the rent money be transferred to your bank account or to your agent?

- What are the laws for your area concerning tenant rights? In some locales residency by a tenant or subtenant for even three days gives them some permanent legal rights with respect to your residence. In some circumstances, those laws may make it difficult or expensive to deal with issues that could, despite their unlikelihood, arise. For example, you may not be able to evict tenants or subtenants for non-payment of rent. And, you would have to deal with those sorts of issues while overseas.

Despite how daunting some of the considerations above may seem, renting one’s permanent residence is often a good option for the RTW traveler. You will have money coming in, and your residence will be occupied, which many travelers would consider a far better option than leaving their property vacant for a long period of time.

Tips for Renting or Subletting

- At least two months before your expected departure date, send an email to family, friends, and business associates stating that you are considering renting your residence while you travel. You will be surprised how many people have a “friend of a friend” or better who will want to talk to you about renting your home.

- If you can’t find someone by going through family, friends, and close associates, try using a real estate management company or an online source specializing in renting and subleasing to find someone.

- If you use a management company or online source, choose one that charges the tenants a fee. That will narrow down your short list to those prospective tenants who mean business and who are not just having a look around.

- As a last resort, list your property in local papers or with free online services such as Craigslist. I say do this as a last resort because, in my personal experience, the sources which are available to use free for all concerned tend to have more people simply “looking around.” And, unfortunately, they sometimes attract unscrupulous people, some of whom may be out for an easy way to take advantage of you.

- Be up front and start discussions early with management companies or boards who need to approve your sublet or tenant. The more open you are with them, the more likely they will be inclined to approve the arrangement you want.

- Build the cost of a cleaning service into the rent you charge, and arrange for a cleaner to periodically visit your home. You will be more assured that your place is being maintained well, and if you are familiar with the person or persons doing the cleaning, you will have someone who can get in touch with you if they observe any abuse or damage to your property.

- Consider hiring a real estate management company. Such companies will find tenants for you, maintain the physical property while you travel, and offer assurances that prospective tenants are properly being screened.

Selling Your Residence

I have met a few travelers who have sold their residences before traveling. That would certainly produce a true feeling of freedom in some travelers, and it would very likely provide a sufficient amount of funds for an upscale RTW trip if such funds are not otherwise available. I would caution those considering such an option to think through what their circumstances will be upon returning home (that is, if those travelers do in fact return to the same location after their trips!). Not only would one have to deal with selling, storing, or otherwise disposing of existing furnishings before traveling, but it may be quite difficult to end a successful journey with no place to stay and unwind upon arrival home.