If you own a home and you plan on moving (or you’ve invested in a property that’s not your primary home), then you’ll want to figure out what to do with it. Selling a home might be the first thing that comes to mind, but there’s another option: rent the property.
The following are 3 considerations when deciding whether to rent or sell a home:
- Local real estate market – A “seller’s market” is the best time to sell. It means there are a lot of buyers and a low supply, so you’re more likely to sell your house at the listed price. Check local listings for properties similar to yours. See what they’re selling for and how long they’ve been on the market. If they’re selling for lower than what you expected and are taking a long time to sell, then selling a home might not be worth it.
- Profit Potential – If you can make a significant amount of profit on selling a house due to increased demand, you might want to go that route. This is especially true if the potential rental income barely covers expenses, including the costs of your mortgage and maintenance.
- Rental property upkeep – Having a rental property income can be nice, especially if you’ve paid your mortgage. Keep in mind: As a landlord, you will be responsible for maintaining the house. Unless you hire a property manager (which can be costly), being a landlord may take up a lot of your free time.
These are just a few things to keep in mind when deciding between selling a home or renting it out. For more advice on buying or selling a home, contact us at Randy Lindsay today.