Market Conditions in 95051>Question Details

rolobos, Other/Just Looking in 95051

I own a condo (2BD,2BA, 1166 sqft, washer/dryer) in Santa Clara and am considering renting it out.

Asked by rolobos, 95051 Sun Nov 18, 2007

Expenses per month are about 2580/month all inclusive (mortgage, propertytax, HOA). How easy is it to rent out condo's and how much can i get on rent? how can i break-even? Condo location is Vista Del Lago 121 Buckingham Drive.

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Has your income changed (positively or negatively) since you bought the condo? Are you single and exceeded your $250K capital gains exemption limit? Are you buying something else locally? Moving out of town and buying? Staying here and renting something else? Moving in with someone who already has a home? Do you feel the value of your condo will increase (over the next few years) after you rent it and that's why you want to keep it? Do you have enough equity in it to sell or are you break even/underwater? Can you pay down your loan or refinance? Do you want to rent it out short term (1-3 years) and then sell? Will you be in the area and managing it your self? Do you need to find a property manager?

These are all important questions that will affect a decision to rent. As mentioned already, it is negative at this point. If you bought it a long time ago, you probably won't have a very high basis that would help with depreciation for tax benefits to soften that burden. Depending on your income, you may not be able to take advantage of depreciation and losses.

It isn't very hard to rent out a condo and you have a central location for commuting (I've sold several units in Vista del Lago over the years). There is more to renting than just an ad on Craigslist. There are disclosures, detailed credit reports and tenant screening, maintenance, collecting the rent, etc. It is just a commitment to a little extra work if you're up to it. Or you could sell it and commit your resources to a potentially better home to move into. I can't tell from your question if that is in the equation or not.
Web Reference: http://www.markburns.com
1 vote Thank Flag Link Tue Apr 28, 2009
Look to sites like Craigslist and MercuryCenter to see what other condos in Santa Clara are renting for. It's only a 2 bedroom so you may not get all the $2580 you need. Also, dealing with tenant/landlord laws can be confusing and subject you to possible litigation if you don't know the laws. Some of those laws may favor the tenant. Make sure you are prepared to be a landlord. To get an idea, these statutes are covered under the Landlord Tenant Laws in the California Civil Code which can be found at this link:
http://www.leginfo.ca.gov/calaw.html
The Feds lowered interest rates (again) today, so you may consider a refinance to a lower rate to see if it might lower your monthly payment on your mortgage.
1 vote Thank Flag Link Wed Jan 30, 2008
You may consider looking at your loan and perhaps considering a refinance. Depending on how long you itend to keep the property, you can look at shorter term loans with better interest rates and payments. If rents are 1700+/- per month, you will probably still have a negative, although it can be minimized perhaps by refinancing the loan. Other questions I would ask is - are you renting the property because sales prices are too low? or Is this a long term investment strategy? Both will impact your decision on how to structure this rental.
1 vote Thank Flag Link Wed Nov 28, 2007
Mario Pinedo,…, Real Estate Pro in Beverly Hills, CA
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Based on other units (one at 150 saratoga), the rent should be around 1750 a month. As far as breaking even good luck, the numbers can't work unless you buy down your loan.
1 vote Thank Flag Link Tue Nov 27, 2007
Hello Rolobos. I would check the San Jose Mercury News rental section and see how much 2/2 condos rent for. I don't know what your after tax actual monthly cost is, but I think renting a condo that size for over $2,000 per month will be difficult. My suggestion to you would be that you seek the advise of a tax professional before you make a decision to rent out the condo.
Web Reference: http://www.theMLShub.com
1 vote Thank Flag Link Sun Nov 18, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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Hello, This is a bit unusual to write you here, but I am looking to either rent or buy in Vista Del Lago. is your condo by any chance in building 22? I think I spotted it by the back lagoon. I would be very interested in talking to you about it-maybe you don't even have to advertise it!! cheers, Judith improve_reading@hotmail.com
0 votes Thank Flag Link Mon Jul 6, 2009
Others have had fantastic answers. In addition you can contract some rental agencies.

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Web Reference: http://www.REALTORamir.com
0 votes Thank Flag Link Tue Nov 20, 2007
Go to craigslist.org and look up other comparable rentals...this is a good resource...probably the best....in the Bay Area. Price your from there. Good luck!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sun Nov 18, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
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