The Homeowner Hangover

Selling a home you’ve owned for many years can open up a different set of choices about what comes next. For some people, that means buying something smaller. Others consider renting. There can be an appeal to having fewer responsibilities, freeing up the equity they’ve built over many years and using that money differently, or simply having more flexibility for whatever comes next. Of course, for many longtime homeowners, staying exactly where they are makes perfect sense. A home may be paid for, familiar and still work very well for the life they want. But for those who do decide it’s time for a change, renting is one of the options they may consider.

There’s some data behind that decision. Statistics Canada found that among homeowners who moved into renting, reducing housing costs was the most commonly cited reason, at 27.8%, followed by a change in household size at 22.1%. Being closer to family and health considerations were also factors. And there are some obvious benefits. No more lawn care. No major home repairs. Fewer maintenance responsibilities. A predictable monthly housing cost. And potentially the opportunity to take the equity you’ve built in your home and use it differently.

Over the past year, I’ve worked with a few clients who have done exactly that, selling homes they have owned for many years and moving into rentals. It’s had me thinking a lot about the transition, and about my own experience with it. Because while the practical and financial reasons for renting can make a lot of sense, there’s another side of the decision that can be underestimated. Going from being a homeowner to being a renter can take some getting used to.

When you’ve owned a home for a long time, you’re used to making the decisions. You choose the appliances and finishes. If something breaks, you decide when and how to deal with it. You make improvements because they matter to you, and because it’s your home and your investment. That mindset can become second nature, and it doesn’t necessarily disappear when you become a renter. I’ve seen this firsthand with clients. The appliances may not be as nice as the ones they left behind, and they want to bring in their own. The air conditioning unit is noisier than they expected. They hear more from the neighbours than they’re used to. There may be different rules to live by and decisions that are no longer theirs to make.

I understand it because I’ve done it myself. When Tim and I sold our home in Toronto, we rented for about a year and a half before buying again. We were ideal tenants. We put the same care and effort into that property that we had put into the homes we owned. I’m fairly certain we left it better than we found it. The problem was that we spent too much time, effort and money improving someone else’s investment. We hadn’t really made the mental shift from homeowners to renters. For us, it was premature, and we ended up buying again before eventually moving out of the city. It may have been a wee mistake, but we learned from it. Would we consider renting again one day? Absolutely. But my own experience, combined with what I’ve seen with clients this past year, has changed the way I think about that decision.

I’ve come to think of it as the homeowner hangover. You’ve made the decision to leave home ownership behind, but some of the habits, expectations and sense of responsibility that come with owning a home can linger. There can be a lot of freedom in letting go of the responsibilities of home ownership. But some of that freedom comes from being comfortable letting go of control as well. Understanding what you’re gaining, what you’re giving up and how that might feel is worth considering before making the move. Not just whether renting makes sense financially or practically, but whether you’re ready for the transition itself.