Archive for the ‘Renting a Home’ Category

Depending on your future plans, renting houses might be the best option for you.

There are several reasons why many experts are saying this. For starters, there is currently a large inventory of existing as well as foreclosures for sale which could mean that the housing market will have a long way to go before it stabilizes. Building home equity is actually something that looks impossible right now especially with the depressed home prices.

Choosing to live in a rental property instead of investing in a home actually makes a lot of sense for many individuals. It is really more attractive for those who have been considering relocating, retiring or just downsizing.

On the other hand, if you have just started a family, likes a particular neighborhood and employed securely, buying a home might be a better idea — only if you have considered the total ownership costs. After all, you might have trouble recouping the money you will have to shell out for down payment and closing cost as well as property taxes.

There is also the question of home value appreciation. Again, considering the condition of the housing market, there is a huge possibility that you will not enjoy home equity.

If you are still leaning on home ownership, one of the ways you can play it safe is by digging deeper and doing plenty of research on the particular area you are interested in. Check the incidence of foreclosure and home vacancies, mortgage delinquency trends and shortage of housing units.

But keep in mind that even if you do your homework well, the old belief that owning a home is a risk-free investment is no longer true. This has been rebutted when the housing market collapsed under the weight of the mortgage mess and economic recession.

If you do decide on renting houses, you should not be embarrassed especially if you are having financial difficulties. Instead of using your money for buying a home, you can use it to pay off your debt or put it aside for retirement or emergency. In any case, it will give you a chance to recover from any financial problems.

Renting homes in New Jersey has become a better option for a lot of people commuting to New York City and nearby cities because of the declining rents, the rising number of rental options and the increasing number of amenities offered to renters in New Jersey, especially in the northern parts of the state.

In new apartment buildings in New Jersey, such as the Alexan, a renter can have a one-bedroom unit for just $1,500, with one month of free rent for a 14-month rental contract.

In another rental building, a two-bedroom unit with two bathrooms can be rented for $1,400 a month. The rent includes access to free garage parking, a resort-size pool, a fitness center, game room, a media lounge, a business center and a clubhouse.

Although the commute from some New Jersey areas to Manhattan takes 45 minutes through a shuttle bus and the PATH train, the trade-offs including amenities, comfort and savings are worth it, according to many renters.

Jacqueline Urgo, head of Marketing Directors that lease several New Jersey rental buildings, said that renters nowadays are looking at options available to them and examining values they can get, including opportunities or savings from renting homes instead of buying.

At the Skyline Ridge rental building in Springfield, most apartment units have been leased. The complex offers views of the Manhattan skyline, access to train stations and highways and relatively low consumer prices.

At the 140 Mayhill apartment building, rents are about 50 percent of rates for similar units in Manhattan and about 30 percent below rents of similar units in Hoboken. According to Jonathan Moore of Value Companies which developed Mayhill, his firm is offering one month of free rent for a 14-month rental agreement.

Moore said that his firm started phasing out some of the amenities after more and more renters applied for units. Current renters recommended the building because of its access to the train station, bus stop and major highways.

Among all the amenities offered, free parking is one of the most appreciated by renters who said they were paying a monthly fee of $400 for parking space in their previous rentals. They also appreciate small perks like door-to-door trash collection.

Renting homes has become a better option for many, not only in New Jersey, but also in other parts of the country where rents have sharply dropped and where landlords offer incentives to renters.

House renting provides additional income but it also brings up problems that you need to solve or prevent from happening based on the experiences of other landlords.

Among the most common problems are those that arise from the rental conversion of a single-family house that was supposed to be occupied by the buyer. Before advertising your property as a rental, make sure your neighborhood or your association allows lease agreements. Make sure there are no zoning restrictions in your area.

Likewise, if you are converting your basement, attic or garage into a rental, make sure zoning codes and neighborhood laws allow your plan. Any extension or construction of a separate entry way for rental space should also comply with building codes in your area.

Oftentimes, neighbors complain if too many rentals depress their quality of life because of too many cars parked on the streets, too much noise or too many irregular extensions that destroy the overall appearance of the neighborhood.

Make sure everything you do in relation to your rental complies with your neighborhood laws, your city codes and your mortgage contract because oftentimes penalties or the consequences on your mortgage are costlier than what you expect to earn from your rental space.

House renting can also affect your home insurance. Consult your insurance agent if changes in your property will void your right to claims. You may be required to buy a policy for multifamily housing.

Another common problem faced by landlords arises from inadequate rental contracts or inability to implement the provisions of the contract. You may have specified penalties and fees for late payment of rents but you are not able to impose them because you are too kind or the tenant turns out to be the worst person you have ever met.

Just like other problems in life, the problem of a delinquent tenant is better prevented than solved. Spend time in screening tenants; do not accept the first one just because there are few people looking at your rental. Many landlords say that a vacant rental is better than a rental occupied by someone who not only refuses to pay but also refuses to leave and destroys your property.

Despite these potential problems of owning or managing rental properties, do not be discouraged. There have been many individual investors who have successfully earned income from house renting. Just research thoroughly, plan wisely and learn from the experiences of other landlords.

Renting for profit during the downturn is one option or investment opportunity that you can consider to weather the harsh effects of the recession.
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