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Should I Rent or Sell My Condo or Loft?



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By : Andy Asbury    99 or more times read
Many people question whether it makes more sense for them to buy a condo or loft, or to rent one. But today, the question of whether to sell your home, or rent it out, is just as common. The decision about what course of action to take comes down to a few things, including your finances and your temperament.

If you want to sell your condo or loft, can you get out of it what you need to? That is one of the first questions you should ask yourself. If you owe, for example, $200,000 on the mortgage, can you sell it for that much? And if not, do you have enough money to cover the difference? And let’s say you do have that money – or can get a loan for that amount – are you willing to part with it simply to get out of your place? If the answer is yes, that you will do whatever it takes to get out of there, then move ahead.

But some people opt to stay put, pay down their mortgage, and target a later date for moving. Others don’t have that kind of patience or that choice – if their job was relocated, for example. For them, renting may be a good option. The rental market is especially strong these days, and it is likely you will be able to find someone to rent your place, so long as you price it right. Even if there are other units for rent in your building, you can probably attract a renter so long as your rent is competitive and you do something to set your condo or loft apart from the others.

One thing you need to keep in mind if you are renting out your place and buying a new one is that the bank likely will not consider your rental income for a certain time period – six months or more. Even if you have a signed lease and a cashed deposit check, your mortgage will count as a monthly expense during that time period. Banks do that to combat people who forge lease documents so they can count the rental income to help them qualify for a loan, and then simply mail in the keys once they are in their new home. And even when that time period is up and you can show continuous rental payments, banks still will give you credit for only about three-fourths of the rental income.

So assuming you are still on track to rent out your place, consider your make-up. Do you want to be responsible for finding renters? Collecting rent? Taking calls at all hours of the day about leaking faucets or malfunctioning air conditioner units? Having to evict tenants? If you answered no to any of those questions, you may want to consider a professional property management agency. They will charge you a certain amount – one month’s rent, plus $100 each month, for example – and take care of all of that. In that case, the property manager deals with the renter. You simply receive a rent check each month and get calls only when the property manager needs you to make a decision.
Minneapolis condos rent out quickly in the Mill District of Minneapolis when renters utilize the custom "condos Minneapolis" automated search tools online at www.MinnesotaLoftsandCondos.com

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