House not selling? Consider renting it!
Updated: Sep 24, 2020
As a real estate company in NJ who specializes in selling houses and renting houses, we have met our share of frustrated owners who are trying to sell their house. Many people who try to sell their house never think about renting it. However, this can be a good option for several reasons and we will explain that below with 5 great reasons:
What is your financial situation?
If you are in a position to carry a mortgage on the property, or you do not need to sell your home then renting the house is an ideal situation. We have many clients who are moving out of the area but don’t want to part with their home. They quickly realize what a great idea renting the home is if their mortgage payment is low and if we are handling the property management. I like to call it “mailbox money” and once the owners realize they can hire a property management company like us, they usually go for the idea.
2. House listed on the MLS – no offers
If your house has been sitting on the MLS for weeks with no offers, something is very wrong and it is usually the price of the property. Many owners struggle with accepting that their house is just not worth what the market thinks it’s worth. That is ok! Again, if you do not need to sell – rent the house and let the money start to roll in!
3. Tax benefits
When you own your personal residence, you get to write off the mortgage interest on the property. When you own a rental property you get to write off the property tax, insurance, mortgage interest, landscaping, repair work, depreciation of the house, etc. The house essentially becomes a tax shelter while creating passive income for you. Are you still not convinced renting your house is the way to go if you’re struggling to sell it?
4. You do not need to deal with tenants
If you hire a property management company like us, we take care of finding a tenant for you. We handle the calls about no heat, A/C is broken, pipe is leaking, etc. You pay us to handle the headaches and you just collect mailbox money each month! Then you get to write off multiple items that lowers the actual paper profit of your rental property.
5. House is priced well – but needs updating
Okay, so you have a great realtor, the house is priced well but the feedback you’re getting is that the house needs to much work for the price it’s listed at. The house is still not selling! You have two options – drop the price or make the repairs. Great news, not only does our company sell houses and do property management but we also do construction management! Even if your house is in disrepair and believe me, we specialize in handling houses that need some TLC, you can still use us. We will fix the house up for you, then rent it and then you will be on your way to getting mailbox money!
Selling your house is not a bad idea but if your house is not selling, consider renting it! If you are going to consider renting your home then there is simply no one else in New Jersey to call except us. We can help you every step of the way and make your rental property as passive of an investment as a mutual fund! Contact us today!