As an active Realtor in the Danbury area, I often meet with clients that have to move. A common question by owners of condos is should they sell their property or keep & convert into a rental unit? Each option has their own positive and negative options.
Selling is the easiest way to totally get rid of the property which no longer suites your needs. We would market your Danbury condo to qualified buyers. Through the work of a proven marketing plan, we get several qualified buyers through the door into see you home. We would negotiate the offer, the buyer does the building inspection, applies for their mortgage, contracts are signed, appraisal is done, loan is approved and then you move out and close. When you sell,the remaining balance on your mortgage & closing costs are paid from the buyer and anything on top of the cost to that, you would receive a check for the difference. You would sign the deed and other paperwork ,hand over the keys, and the property is transferred to the buyer and sold.For some sellers, they may not have the ability to contribute the necessary funds available to pay of their mortgage & closing costs if their is a difference or they don't have the time to wait for a closing (typically happens about 2 months after the offer was accepted).
Renting your condo in Danbury gives you immediate cash flow every month. Your tenant should be paying their rent on time every month. As the owner, you are still responsible for your mortgage payment, monthly association dues and annual property taxes. Your tenant would be responsible for their own utility bills. With renting, I advise clients budget for vacancies, cost to turnover the unit to get it ready for the new tenant (cleaning, any painting, etc) and perhaps upgrades down the road for mechanical systems. Most tenants to treat their residence fine, but there is no guarantee, despite checking references and credit,if the tenant will be a success. However, you do collect a security deposit up before the tenant moves in. In Connecticut, the written lease does stay with the property, which for example means if you sell your property on May 10, 2016 and the written lease is up September 1,2017, you can not kick the tenants out. I can provide to prospective landlords an estimate of what how much monthly rent your property can get. You can wait out the market if you feel the current value is too low, but there is no guarantee on the future values or how the tenant will treat your property.
It is your decision on how you wish to proceed. if you are not sure which is the best option for your situation, please request a confidential market analysis for a sales price or a rental price below. In some cases, I've advised owners to put up to for sale and for rent, and go with whatever the strongest option is. I am here for you. I look forward to hearing from you.
Page last updated 1/13/2018