It seems like everyone is relocating lately – maybe it’s the result of new career opportunity, a promotion or maybe you are changing companies altogether. COVID has created a situation where many companies are reallocating employees to keep up with the changing environment. I know a few people relocating for other reasons as well.

What’s interesting is many of these people are choosing to keep the home they own in New Jersey instead of selling it. They have decided to keep the home and rent it out as a smart, long-term investment. There are a few reasons why people are doing this:

1. Mortgage Interest Rate - The mortgage interest rate is one reason. If you were able to get a mortgage in the last few years, you locked in on historically low rates. By keeping the home, you keep that low rate. If the home was sold, and a new home was purchased now, the mortgage rate would be considerably higher.
2. Smart Investment – Real Estate over time is one of the best investments you can make. Risk is low. In fact, home values consistently build and increase over time.
3. Tax Impact – There are actually two tax benefits here. First, if the home is sold there will likely be negative tax implications resulting from the proceeds of the sale. And two, there are so many tax benefits of owning a rental home. Consider this: almost every dollar spent on an investment home can be used as a deduction. This includes taxes, repairs, mortgage payments, insurance, etc.
4. High Demand - There is a severe housing shortage in New Jersey. If you follow the sales market, you may already know that there are many more buyers then there are homes to buy. While it’s true New Jersey has higher taxes, New Jersey also has plenty of high paying jobs in high growth industries like, tech and pharmaceuticals. In addition, New Jersey consistently has some of the best public schools in the country. Just as there are fewer homes for sale in relation to buyers, there are not nearly enough homes for rent for renters. That means that good rental homes rent quickly and for top dollar.
5. Rents Trending Higher – Because there is such high demand, rents have been going up steadily. Rents are up over 30% in just the last 10 years. This trend may continue. That means a tenant paying rent can cover the homeowner’s costs such as taxes, mortgage, and insurance.

Sureway Property Management manages hundreds of homes in New jersey. We regularly take on properties to manage where the homeowner is relocating. We offer full service property management including, leasing, photo inspections, rent collection, record keeping, 24/7 maintenance requests and all interaction with the tenant.