Are you among the many central New Jersey home owners who are considering renting your home rather than adjusting the sale price? Recently, Keeping Current Matters addressed this issue, which is steadily becoming larger and larger. Make note, thought: If you're in this position, and you don't want to become an educated investor, you could be headed for problems. Before you rent your home, we agree with KCM that you need to take three steps to ensure that you're undertaking the right course of action.
First, have a consultation with an eviction attorney. If you rent your home, you assume that the rent will be paid every month, right? But in today's economy, there are a LOT of people who aren't paying their mortgage. You need to clearly understand the legalities of the eviction process before you decide to rent, because there's a strong possibility that you'll rent to someone who can't – or won't – pay rent to you.
If you're not a full-time investor, you should hire someone to handle the property for you. A professional will find a qualified tenant, collect the rent and manage the problems. They'll also handle collection calls, and they'll be the one receiving maintenance calls. Imagine the scenario proposed by KCM: What would you say if a tenant told you that they had enough money to either buy food for their children, or pay you your rent, but not both? There are people experienced with these situations, and they can help you.
Although you're going to receive rent, don't forget that you're also going to have expenses. You need to consider these items:
- Mortgage payment (unless there's no mortgage on the home you'll rent out)
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Property taxes
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Maintenance expenses such as repairing or replacing: roof, heating/air conditioning unit, appliances, etc.
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Insurance – Check with your insurance company; you may have to increase your liability coverage.
Renting residential real estate historically is a great investment. However, it is not without its challenges. Rent the house because you want to be an investor, not because it's easier than selling the house.
We're The Marchany Team, and we KNOW central New Jersey. We're right where you are, whether you're in South Brunswick or Monroe (Middlesex County). If you're looking for a terrific new home in Mercer County, we'll find your place in the sun in Princeton Junction, East Windsor, West Windsor, and Robbinsville. And if you're ready to put your Franklin Park or Hillsborough (Somerset County) home on the market, we're prepared to find the buyers who are looking for your home. Call The Marchany Team today at (732) 997-0019, and don't forget to “Like” us on Facebook! We are dedicated to helping you in every way possible.
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