If you are moving out of your home or own a property in which you don’t reside (for example, an inherited property), you have two options: You can sell the house or rent it. To decide between selling a house or renting it, be sure to weigh the pros and cons of both.
Pros of Selling a House
- Finding tenants or filling vacancies won’t be a concern.
- If it’s a seller’s market, you could make a substantial profit by selling a house.
- There will be no need for long-term management and maintenance of the property.
- You will receive a large amount of money quickly, which is helpful if you plan to buy another home.
- You won’t have to worry about making repairs or dealing with tenant complaints.
Cons of Selling a House
- Selling means there will be no opportunity for long-term profits from your property.
- There are a lot of costs associated with selling a house, including marketing, staging, repairs, and code-compliant renovations.
- Trying to sell a house can be stressful and may not always happen right away.
- You may not be able to get the price you want for your property in a buyer’s market.
Pros of Renting a House
- Monthly rent payments can generate dependable, long-term income.
- Rental income profits can keep increasing if your property is in an area where the rental market is strong and growing.
- You can deduct expenses associated with renting the property: insurance, maintenance, repairs, taxes, etc.
- Your property is likely to increase in value, which can result in profits if you decide to sell it later.
Cons of Renting a House
- If you’re uncomfortable dealing with tenant complaints or disputes, this will be an additional challenge in rental management.
- Long-term vacancies and lost income can occur if you can’t find tenants.
- Making repairs and keeping the property in good condition is an ongoing responsibility.
- Upgrades and renovations may be needed to attract tenants.
- You or your property manager will be responsible for finding and vetting tenants as well as collecting and managing rent.
Ultimately, it comes down to what works best for your individual situation.
Selling your house is a good option if you want to make a quick profit and don’t want to deal with managing a rental property. But if long-term, steady rental income is appealing, renting your house might be the right choice.
For more real estate advice, contact us at Randy Lindsay today.
