Home Selling in 07457>Question Details

Michael, Home Buyer in NYC Metro

Is it better to rent out my condo or sell it, given the current market conditions?

Asked by Michael, NYC Metro Tue Oct 2, 2012

If I were to sell my home, I would make a minimal profit (less than 5K); however, if I were to rent my home I would be able to cover my monthly carrying costs. What are the pros/cons? Any recommendations or suggestions?

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Answers

8
Good morning Michael, The answer to that question depends on so many factors. What is your situation right now? Will you be living close enough to manage your own rental? Compare the rental amount to the sale outcome to see which works best for your future investment plans.
I'll be happy to meet with you to consult your options and help you work out all of the logistics which will ultimately give you peace of mind with the decision that will work best for you.
Have a great day and please call or text or email with any specific questions.
Tere Episale .. Century 21 Crest Real Estate .. Pompton Plains
0 votes Thank Flag Link Wed Oct 3, 2012
Good morning Michael, The answer to that question depends on so many factors. What is your situation right now? Will you be living close enough to manage your own rental? Compare the rental amount to the sale outcome to see which works best for your future investment plans.
I'll be happy to meet with you to consult your options and help you work out all of the logistics which will ultimately give you peace of mind with the decision that will work best for you.
Have a great day and please call or text or email with any specific questions.
Tere Episale .. Century 21 Crest Real Estate .. Pompton Plains
0 votes Thank Flag Link Wed Oct 3, 2012
Good morning Michael, The answer to that question depends on so many factors. What is your situation right now? Will you be living close enough to manage your own rental? Compare the rental amount to the sale outcome to see which works best for your future investment plans.
I'll be happy to meet with you to consult your options and help you work out all of the logistics which will ultimately give you peace of mind with the decision that will work best for you.
Have a great day and please call or text or email with any specific questions.
Tere Episale .. Century 21 Crest Real Estate .. Pompton Plains
0 votes Thank Flag Link Wed Oct 3, 2012
Good morning Michael, The answer to that question depends on so many factors. What is your situation right now? Will you be living close enough to manage your own rental? Compare the rental amount to the sale outcome to see which works best for your future investment plans.
I'll be happy to meet with you to consult your options and help you work out all of the logistics which will ultimately give you peace of mind with the decision that will work best for you.
Have a great day and please call or text or email with any specific questions.
Tere Episale .. Century 21 Crest Real Estate .. Pompton Plains
0 votes Thank Flag Link Wed Oct 3, 2012
Hi.

This depends greatly upon your personal situation. Finances, ability to be a landlord, proximity of your new home to the condo, would you rent or buy a new home. This is a conversation you should really have in person with a professional.

I would be happy to help.
Good luck.
0 votes Thank Flag Link Wed Oct 3, 2012
You've gotten two great answers already. Certainly the potential to cover your carrying costs is a positive starting point. Weigh the consideration of the demands and risks of being a landlord, covered very well by my colleagues in the prior posts, and make an informed decision.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Wed Oct 3, 2012
Hello,

If you were to keep it and become a landlord, what amount of profit from the undertaking makes it worth it?

There are risks involved with being a landlord. Late payments - a few months without rental income if the property is vacant, cleaning and painting in between tenants, maintenance, repairs, paying for hotel stays or other temporary stays if the property is uninhabitable (storms, furnace outage, etc.). If you have a tenant who does not pay and you must evict them, you will face legal fees, time off works, etc.

You could get lucky and get a dream tenant. No guarantees.....but, it's possible. We've placed some dream tenants for our landlords before, and consider it good screening with a good dose of luck added.

How much do you expect the market to bring you in additional value if you wait? Is this amount worth the risk? That's a decision only you can answer since everyone has different tolerances for risk.

Best of luck.

Deborah
0 votes Thank Flag Link Tue Oct 2, 2012
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
That's difficult. A lot depends upon if you need the funds and if you are prepared to be a Landlord. As a Landlord myself, I'll tell you there's no such thing as "passive" income. Managing a property is demanding. If you do choose to rent, know the laws regarding advertising, fair housing, discrimination, and lease requirements. And for goodness sake, take pictures of your entire house from floor to ceiling in every room to have a record in the event you have to go to court. I don't mean to scare you, this is reality. I highly recommend a real estate agent list it and use the NJAR or comparable (if you are not in NJ) Lease Agreement. Find out what is standard practice. Do tenants or landlords pay the commission? Is there a $100 deductible for tenants for repairs? What will be your policy on late fees ("added rent")? What about damages? Keep in mind you cannot ask for more than 1.5 times rent (NJ) so if you are allowing a pet, you cannot ask for an additional pet deposit. Feel free to contact me with Landlord questions.

There are many people who are waiting to sell for a better market. The pundits say it's coming. I don't have a crystal ball. Do what makes sense to you.
0 votes Thank Flag Link Tue Oct 2, 2012
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