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Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152
The rental market in Philadelphia is really hot right now. You just need to be careful on selecting that right tenant. When signing a lease if you get to that point, I would recommend a month to month lease. This is just in case you need to start evictions on a tenant that would lose their job or not be paying their rent at some point.
You have an interesting dilemma which has some clear options but just the fact that you were thinking in this vain shows your fowsrd thinking.
Ok, my people rent not just for the rental income but for tax purposes (I.e. financial aid and college ramifications). It may be possible to rent out the property for at or close to the total expenses of the property plus management fees. Meaning when tax time rolls around you net a ZERO on additional income and possibly negativr (considering expenses). This can lighten your burden and not adversely affect your tax situation. A rental management company can handle ALL the daily operations of the property and call you only when necessary.
1 the mortgage paid
2 utilities paid
3 management fees (10%) paid
4 you basically start from zero because you will be paying rent at your new residence.
Is this decision easy know, but it is much better to have bettee options.
Please feel free to reach out with any questions or check out my blog.
I understand your concern regarding financial aid.
There are no legal issues with leaving the house empty that I can think of,, although you may be violating something in your mortgage and insurance policy.
Your mortgage may have been contingent on you being an owner-occupant for x number of years; and your insurance may require it not remain vacant for longer than a couple months for damage/risk purposes.
Have you considered a caretaker? You can allow them to live there rent free in return for paying the utilities and keeping an eye on the house. Great for leaks, freezing pipes and theft aversion.
If you want to soak further or want to discuss how property management works, feel free to contact me.
Hope this helps and good luck to you!
Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
601 Tenth Street