Mortgage vs Rent- The nuts and bolts

That rent and a mortgage are different? Obviously you did. However, it is easy for investment owners to think that the monthly rent and the monthly mortgage amount are related, but they are not. A mortgage is an agreement with the bank based on the amount of the loan, the buyer’s credit history and the sales value of the property at the time of the loan. None of these are factors when determining rent; rent is entirely driven by local market competition and conditions – basically supply and demand. A mortgage and rent also buy different things – a mortgage pays for an investment, while rent pays for a roof for a specific period of time with none of the financial or tax benefits of home ownership.

About Coldwell Banker Bain Property Management

As residential property managers for Coldwell Banker Bain Property Management Division, we manage single family residences, individual condominium units and small apartment complexes in the greater Puget Sound region. We serve Seattle, Tacoma, Anacortes, Marysville, Bainbridge Island, Lynnwood, Everett, Redmond, Bellevue and many other cities in Washington State. We also offer full service commercial property management.
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