Contact MargaretRent or Sell? Not an Easy Decision
November 8th, 2007 Categories: Crofton Real Estate
Crofton homeowners may consider renting instead of selling, if they have to relocate during a buyer’s market like we’re in now. Since many Crofton residents have substantial home equity and low monthly payments, they would likely have a positive cash flow. Additionally, they may be in a financial position to wait out the market and sell the next time a sellers’ market rolls around.
Yet it’s not an easy decision. There are many factors to consider:
- How much rent should I charge?
- Will renting impact my property value?
- How will I evaluate prospective tenants?
- What if my tenant doesn’t pay on time?
- Will I be responsible for repairing or replacing appliances?
- How much would it cost to hire a property manager?
- How long will it take to rent my property?
Just what are homes renting for in Crofton?
There are seven detached homes currently on the market for rent in the 21114 zipcode ranging from $1800 to $2500, and twenty townhomes ranging from $1345 to $1950 per month
The least expensive detached rental is a four-bedroom colonial on Fallsway Drive, in Crofton Meadows, and the most expensive rental is another four-bedroom colonial on Cameron Court, in Stonegate.
There are three “piggy-back” townhomes for rent in Crofton at or under $1350 and, at the higher end, a three-level Walden townhome.
Renting may seem like an ideal scenario, at first glance, if you’re concerned about how long it takes to sell a home these days. But consider this: In a buyer’s market, well-qualified tenants are likely to BUY, not rent. Why not? After all, some highly motivated sellers are offering incredible deals to attract would-be-renters, and interest rates remain low. This may be a once-in-a-lifetime opportunity for many well-qualified renters to become homeowners.
That leaves high-risk tenants to rent your home, in some cases. Is this what you want? There are many things to consider besides the obvious, when you make a decision to rent instead of selling… many questions…
Before you make a decision, feel free to contact me. I’ve been answering questions about Crofton real estate for over 30 years, and I’d be happy to help you evaluate your options before you decide whether to rent or sell.
Copyright 2007. All rights reserved. Margaret Woda
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Managing high risk tenants is not fun. Will they pay the rent on time? Will they trash the place? The fun stuff dealing with rentals. I don’t envy property managers one bit!
[…] Rent vs. Buy – Margaret of Focus on Crofton fame spells out what you need to consider when making that decision. I know, our rental market is a lot different from Crofton. But the concepts and reasoning is the same! […]
I really hate working with rentals but we’re seeing more and more home owners exploring renting instead of selling. Great article Margaret.