How are Rentals doing in the New Bern area?
Pretty good according to property managers that I speak to. I spoke to the manager of Rivertowne Rentals recently and she told me that of the 150 rentals that they have only a few were not leased. She said she gets calls all the time from folks looking to rent but right now they have limited inventory. Other property managers say they are busy as well.
If you are trying to sell you home and are not having any success then perhaps you should consider renting. Especially if you have moved and are no longer living in the home. The expense of a vacant home can really add up. Light bill, insurance, yard maintenance, water and sewer bills, really get old after a while. Even if you rent the home at a loss it is usually better than than the house being vacant. Below is an example of the expenses you will have to carry a vacant home.
- House payment=$1300.00
- Light bill, if home is empty=$175.00
- Water and sewer bill, if house is empty, $30.00
- Yard work=$100.00
- Total =$1605
Lets say you get $1200 a month rent with an average occupancy rate of 90% and a Management fee of 10%.
$1200x.90x.90=$972. On paper you are losing $328 a month or $3936 a year. This is about the amount it will cost you if the house is vacant to carry it 2.5 months.
Here are my thoughts. If you are upside down on your home, and millions of Americans are, here are your options if you need to sale your home.
- Sell it for current market value and bring money to the closing.
- Try to sale a home for more than it is worth in today's market. Hint, this never works.
- Rent the house and let a tenant make most of the payment for you.
Option 3 may be the best option for many folks. Here is why. The market seems to have bottomed out and hopefully will start moving upwards. It will take a while to get back to the values of 2006-2007. But they will come back. In the meantime you are paying down the loan.
If you would like to have a free consultation to discuss renting your home, give us a call. We look forward to helping you with your real estate needs.