The local real estate rental market is benefiting from the strength in the statewide sales market.
According to the New Hampshire Housing Finance Authority, median rents for two-bedroom apartments in the Granite State inched above $1,200 per month. That’s 15 percent higher than they were in 2011. Low vacancy rates of under 2 percent – a figure that is music to landlords’ ears – are not only driving up prices for existing units but also triggering construction of new rental housing, which is always pricier to recoup design and building costs.
NHHFA’s Jane Law says that the market for everyone except low to moderate-income renters.
Leasing Inherited Property
For various reasons, this option is sometimes worth the financial risk when dealing with inherited property.
One area of risk – vacancy and the lack of cash flow – is less of a factor in much inherited property anyway. Since many of these homes do not have mortgages, the monthly expenses consist only of insurance, taxes and maintenance. In many cases, these costs are negligible or at least not financially debilitating. The other primary area – tenants who damage the property – is also at a low point now, because market conditions dictate that owners can be more selective in the tenants that rent their properties and can also demand higher security deposits.
Many new owners rent out the property they inherit for tax reasons (mostly to avoid the capital gains tax). Some of the other financial and emotional benefits include:
- The house stays in the family
- There is a monthly income stream that can be several hundred dollars a month, or even much more
- Some repairs can be put off
- If the owners change their minds about selling the property or moving into it themselves, many leases can be terminated with just 30 days’ notice
Some owners prefer to manage the property themselves while others hire property management companies that typically charge about 15 percent of the monthly rent.
Contact us today for more information about the financial aspects of inherited property sales and leasing inherited property.