Should I Rent My Home? | Westminster Property Management

Meet Today’s Renter

Westminster is indeed affected by the largely transient community from nearby Washington, DC, Annapolis, and Baltimore. There are students, there are military members, and there are all those interns, all coming and going through the area, staying for a bit while they finish this chapter before moving onto the next – wherever that may be.

There’s a changing dynamic happening in America, and Westminster is not exempt. It is an area hit particularly hard from 2008’s housing crash, with job losses and lost wages grinding the real estate market to a halt.

And, with millennials saddled with growing college and credit card debt, more and more are looking to rentals as a more legitimate alternative to purchasing a home.

According to Zillow’s breakeven index, the average homeowner is paying $114,118 in mortgage annually, while each renter is only paying an average of $48,445 each year. It will take two years for the homeowner to outpace the renter in terms of equity, but in an area as transient as today’s Westminster, homebuying simply isn’t a popular choice.

Meanwhile, while Baltimore City continues to grow due to its transient traffic, its rentals come at a steeper price within a significantly more competitive market. More and more, the average renter is looking to Westminster.

But there just aren’t enough places for them to live.

Market Value & Financial Incentives

Now is the perfect time to be a homeowner.

Whatever your situation, it can be incredibly advantageous to rent your home in today’s market. In addition to the financial rewards, you could become eligible for additional deductions come tax time. That means you make additional earnings just by renting your home.

The startup costs are minimal, as well. Renters don’t demand the modern, high-tech features that homebuyers are looking for. Rather than heaping tons of money into improvements, you can instead put your property on the rental market and start generating income that much faster, without any hefty, upfront investments. That makes your home the perfect turn-key rental.

The financials should make sense. The idea is that your tenant will pay for your mortgage and give you a little extra each month. Neighboring towns vary; for example, nearby Finksburg has an average $1395 rent, making Westminster a far more favorable option for budget-conscious renters.

And, looking at last month’s Market Minute snapshot by Long & Foster, the Carroll County housing market shows the market has remained relatively steady from last year, with no notable growth urging homeowners to sell.

Instead, renting provides regular, stable income while the market (and your home’s value!) grow.

You’re Not Alone

Rental properties are popular for professionals on a temporary transfer or retirees looking for a great source of income.

But honestly, who really has the time to manage a rental property in today’s busy world? There’s too much going on and so much to do, that it can seem like an unneeded headache. Many homeowners opt for an experienced property manager who will survey the local area to find appropriate pricing, while potentially saving you big bucks on your annual taxes.

We’re neighbors helping neighbors, and that’s a level of experience and finesse absent from big box companies and firms.

We will help.