The Dominion Cove Point gas exporting project in Lusby is underway. Many of us have read the newspaper articles about the protests and arguments for and against the project. We can all see the temporary pier under the Thomas Johnson bridge. Awareness that something is going on in our community is high but what does it mean for us, the people of Lusby, Solomons and Calvert County?
According to Lyle Kendrick of the Capital News service
“The peak of the export facility’s construction will be this year or in 2016 and the project will create up to 3,000 jobs, said Brent Booker, secretary-treasurer of North America’s Building Trades Unions.
“This means 3,000 people will pull their car up into the parking lot and get bussed down to the project,” he said. The project will use both Calvert County residents and workers from across Maryland, according to Dominion.”
Starting this year through 2017 approximately 3,000 people will be bused or moved into Lusby. The current population of the Lusby/Solomons area is roughly around 25,000. Adding 3,000 jobs is going to have a significant impact on the local economy and rental properties are going to be one of the hottest commodities. What this means is rents in Lusby and the surrounding areas are going to rise, at least for the next several years. If you own a home the time is now to start considering whether it may be worth renting your home to take advantage of the higher rents.
Here are some things to consider in deciding whether renting your Lusby home is worth it.
- Check the market rental rate. Contact Real Property Management for a FREE market Rent Evaluation of your Property. We will show you exactly how much your rental property is worth.
- Contact an insurance company for a landlord insurance quote on your property. Although you do not have to insure the home’s contents, tenants pose a higher risk for insurance companies. In some cases, your insurance rates may actually increase. Fortunately, insurance premiums are a tax deduction for landlords. Real Property Management can also ensure the tenants are insured and provide this coverage if needed.
- Estimate the taxes you will pay on rental income. Receiving $1,000 a month adds an extra $12,000 to your taxable income. Depending on your current income, the extra income could bump you up to a higher tax bracket. There are several tax deductions associated with rental properties, such as mortgage interest, repairs, depreciation, employee or contractor fees, and long-distance travel costs. Real Property Management will handle the accounting on your rental property and ensure that a 1099 form is filled out for ease of tax filing.
- Review the pros and cons. If you rent the home, you maintain ownership and the ability to sell when the market is booming. The tenant covers your mortgage, while your property appreciates in value over time. On the other land, cons include the responsibility of managing a property, tenants damaging the home and tax on a gain when you decide to sell. However hiring a professional Property Management company such as Real Property Management greatly lowers the risks and provides you with peace of mind that your property is always being taken care of.
If you have any questions about renting your home in Lusby or Solomons call Real Property Management Gold at our Southern Maryland office 301-392-2172.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.