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Plaza 1000 at Main Street
Suite 403
Voorhees, NJ 08043
Phone: 856.489.5559
Fax: 856.489.5577

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Bank of America Building
6 E. Trenton Ave. • Suite 5
Morrisville, PA 19067
Phone: 215.736.3156
Fax: 215.736.3215

 


TIP OF THE MONTH - April 2007

RENTING ISN’T SO BAD 

While everybody seems to be focused on acquiring a home because of low mortgage rates and the appreciation in property values they have facilitated, few people are noticing the extensive availability of rental housing.  Nationwide rents are rising at an annual 1.7% rate per year, and in many markets rents have actually been falling because of overbuilding of multi-family housing units.  Thus, for a young couple, renting may be a financially sounder decision in many locations around the country than real estate ownership.  For those who consider renting, here are some things to consider:

  1. Rent generally should not consume more than 30% of your take-home pay (40% with utilities).
  2. Photograph the premises when you move in, highlighting any damage so the landlord does not withhold part of your security deposit when you move out. 
  3. Make sure you have a written lease agreement that spells out the rent and the utilities included, as well as maintenance and painting requirements.
  4. Utilize the weak rental market to obtain as many concessions as possible from the landlord.

Incidentally, while you may break a lease if unsafe living conditions exist, in other instances you remain liable for the rent until the landlord has found another suitable tenant or until the lease terminates, whichever comes first.  Young families frequently seek our financial and tax advice
with real estate lease and rental decisions.