You may have chosen to move to a new house for any number of reasons. Usually, the idea is to sell your place and buy a new home. However, things can get rather complicated at times. For instance, you could choose to rent your house for more than the cost of your current mortgage and then buy another home. Let us look at a number of factors you must consider before buying a new Boston home when renting the old one.
Know the rules
It is important to review your current mortgage before you think of renting your place and moving into another one. Some mortgages allow people to convert their place of residence into a rental without paying any charges while others may require payment of penalties or refinancing into a more expensive loan. There could even be time-bound restrictions, not allowing you to rent your place unless you have spent a particular amount of time in it.
Do not overestimate
It is only natural for you to overestimate the value of your Boston home as well as the rent you would receive. The value of your home depends on such factors as the type of location and the property you are looking to sell. Not every home is similar or valued equally. Thus, it is important to speak to your property manager to find out what like homes usually cost and the current rent rates.
Factor in all rental expenses
If the tenant agrees to your asking rent, that’s good news. However, not all of the rental income would go straight to your pocket; you would be utilizing some of it to manage your rental expenses. It is wise to allocate your rental amount to such as expenses as homeowner’s association dues, property taxes and general maintenance.
In case you are having trouble running the affairs on your own, you must set aside another portion of your income to pay a good property manager. Hiring a property manager not only lowers the pressure on your time and effort but also minimizes the risks involved since experienced property managers are professionally trained people who know each facet of managing a rental property.
At BBA Management, we offer full-service property management in Greater Boston cities like Brookline, Newton, Fenway, Kenmore and Cambridge. You can also contact us or call us at 617-734-6900 or send us an email at firstname.lastname@example.org.