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California MD Wildewood Rentals

Wildewood in California MD is one of the most sought after neighborhoods in Southern Maryland. With its convenient location just minutes from the Patuxent River Naval Air Station, Great Schools, Pool, Walking Paths, convenience to shopping, and other amenities its easy to see why its a top choice in St.Marys County.

The constant new home construction makes it difficult for existing homeowners who have only been in there new homes for a short time with little equity from selling in Wildewood. In California Maryland if you want to sell your Wildewood home, but have little or no equity, you may have to come up with tens of thousands of dollars at the closing table to satisfy your loan. Or you could become an “accidental landlord” and rent out the house.

Renting out a property in California MD is usually a great investment with proven returns but what do you need to consider before deciding to rent?

Here are six reality checks before deciding whether to rent out your home from

You’ll have to monitor cash flow

Homeowners should add up the costs for paying their existing mortgage as well as taxes and insurance, and compare that number to how much income they are likely to receive from renting out the property, says Joseph Montanaro, a Certified Financial Planner with USAA in San Antonio.

If cash flow is positive, then it makes it easier to decide to rent out your home, he says. If rental income exceeds expenses, you may have to report the surplus to the Internal Revenue Service as income, he says. Real Property Management Gold can create a rental analysis report detailing what you should expect to receive in rental income in order to assist with the decision. Our fees are also tax deductible most of the time.

You may need an agent or manager

It takes proper screening to attract a good tenant, and it’s easier to screen if you have a leasing agent working with you, Baytoff says. Homeowners should be prepared to pay the equivalent of a month’s rent to a professional who will help find a tenant, he says. Real Property Management Gold has the top systems in the industry to ensure the top quality tenants are in your rental property.

For a property manager — someone who collects rent payments and handles problems — expect to pay a fee equal to about 10 percent of the monthly rent, he says. Real Property Management Gold can handle it all at a fair price.

The value of your home could decrease

Turning the home into a rental might make the value of the property go down, Montanaro says.

A tenant usually has little incentive to make sure a house looks good when a potential buyer comes to view it, says Katie Severance, author of “The Complete Idiot’s Guide to Selling Your Home.” “The house may not show as well as when you occupied it as a homeowner. And worse, the tenant may even speak ill of the property when a potential buyer comes to see it,” she says

Real Property Management conducts inspections as requested by the homeowner to ensure the home is showing well. We also have maintenance staff on hand to correct any problem caused by tenants and ensure if any tenant is destructive they are held accountable and evicted if necessary. We have great relationships with Real Estate Agents in the area and assure access to the property as needed for showings.

Leasing could delay a sale

If you eventually find a buyer for the property, you may have to wait until the lease is up before you can close the deal, Severance says. “A lease supersedes a sale. If you find an eligible buyer, you can’t violate the terms of the rental agreement to kick out your tenant,” she says.

One exception could be if the buyer wants to buy your home as an investment property. In that case, the buyer may then allow the tenant to remain in the property for the rest of the lease term, Severance says.

You’ll have to switch insurance

If you move out of your home, you must notify your insurance agent. You’d likely have to buy a landlord policy, Montanaro says.

This type of insurance covers the house and could reimburse owners for lost rental income due to building damage. The policy can also reimburse legal fees and liability protection if a tenant were to become injured in the home, says Loretta Worters, a vice president with the Insurance Information Institute, a trade group in New York City.

“Landlord policies generally cost about 25 percent more than a standard homeowners policy because landlords need more protection than a typical homeowner,” Worters says.

Real Property Management GOLD has the connections necessary to assist in the discounted purchase of Landlord insurance at an affordable rate. Sometimes even less then your existing homeowners policy.

You may not be able to buy a new home

If you have a mortgage on your old home, it could affect your ability to get a mortgage on a new one after you move, Baytoff says, because debts would be high relative to income.

When homeowners’ debt ratios are too high, they have a difficult time getting a mortgage on another home, even if they have rental income on the first property, he says.

And that means those owners must become renters. Unless you can show the bank reliable investment income from your first property. Real Property Management can provide detailed profit and loss statements, along with yearly tax forms which can prove to the bank that you can handle an additional mortgage.

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