Why rent when you could sell? There are many reasons that would make renting a better option than selling such as - passive income, better returns, and growing investment for selling later at a higher profit, and so on. Recession is a time when renting is most attractive because at this time there would be many foreclosures and bankruptcies. At such time, even though real estate costs slump, people would not be inclined to buy houses since cash becomes scarce. Those who lose their homes to the economic meltdown would look out for renting a home.

Reports show that there are about 120 million homes in the USA, out of which about one fourth are rented. During recession, the renting segment is likely to grow to about one third, which means there is more opportunity in renting than in selling a house. There is a steady growth in the demand for renting since 2006, which peaked with the present global meltdown.

Fortunately, no matter how low the market slumps, it does bounce back. In fact, real estate business always follows a rent-buy-rent-buy circle. You need to be astute enough to know when you should sell and when would be best to lie low and rent your premises. Today, according to the reports for every single prospective homebuyer there are about 30 prospective rent seekers. These are wonderful odds for you as a property owner.

Rent Covers Your Costs: You depend on the rent for your source of revenue and the returns from this business offer you a steady income. To calculate the profit do this simple calculation - total the cost incurred for the property you are renting (these would include insurance, taxes, mortgage payments, maintenance, and the like) and add to these your expected revenue. If it covers the expenses and still has surplus, you are on the right track.

Real Estate Prices Would Rise Soon: Renting would allow you to buy time so you could make good profit when the economic situation improves. Often, laying low makes a lot of sense - even when renting would look unprofitable over a short period. When the real estate business picks up, the tables turn dramatically and you would be able to make a handsome profit.

Time Is On Your Side: Renting is a good idea, when you are not running against time to organize liquid cash for any emergency. Renting, as stock market requires patience so you could strategize your next move. If you have urgent need for large amounts of cash, renting would not be the best idea.

Be Prepared For What It Takes: I agree that renting can be a brilliant maneuver when real estate market is down. However, you need to be aware that this would not be a bed of roses. This is a business like any other and it requires your effort and a lot of involvement.