We live in Morris County. Our town is in one of the Summit, Chatham, Madison. We are upgrading to a new home this summer and we don’t want to sell our existing home. We want to rent it out for now and sell it in the future when it is time ti pay for college tuition for our kids. This is a single family house and in fact an old one. It didn’t cost us much in the past 9 years to maintain it and only small expenses.
I am not a handyman at all and I don’t want to deal with finding new tenants etc. Based on my research, a good property management charges between 7% to 10% of the rent. This seems reasonable.
Is there anybody from Morris county using a good reliable property management company and what has been their experience? What shall I be careful about in this new journey.
Total aside…but be careful about capital gains taxes if/when you do sell your rental. It is my understanding that if it hasn’t been your primary residence for the last 2 years before selling, then you might owe a hefty sum, if you’ve owned that property for awhile, and it has increased substantially in value during that time.
Agree that if you haven’t lived in the property 2 of the 5 years before you sell the property, you can have a significant capital gain when you sell the property.
We found our property manager by recommendations through word of mouth. Perhaps your realtor may do property management or have referrals of good property management companies.
I already talked to my accountant regarding tax impact. I think we have a good game plan. Our realtor is doing property management herself but I want to go with an established company in this area. I hope there are people in this part of New Jersey who are using some of those companies.