Should you sell your home or rent it out? I’d like to break down some of the advantages and disadvantages of each option.
If you’re looking to make some extra money with your home, you may be wondering whether it’s better for you sell it or rent it out.
Many may consider renting their homes out because they’re worried that they won’t get a good price on it or it won’t sell quickly. Others believe that the cash flow that their home will produce makes it worth renting out. Today I’d like to go over some of the positives and negatives of selling your home vs. renting it out:
If you’re considering selling your home, two things that you may want to consider before taking the house off the market and renting it out are:
- Do you really want to be a landlord? As someone with personal experience being a landlord, I can attest that there are a lot of responsibilities and extra issues that landlords deal with that may not be in your best interest.
- You might be able to get more money for your home than you think. Additionally, your home may even sell quicker than you might think it would.
Before you consider taking your home off the market, consult with your real estate agent and get a current market valuation.
"Do you really want to be a landlord? "
What are a few reasons that you might consider renting your home out?
- Your home is cash flowing. You’ll receive money from the tenants living in the property, putting more money in your pocket each month.
- Your home has future value. Chances are, the longer you keep your home, the more it will be worth in the future.
What are a few reasons that you would not want to rent out your home?
- Some tenants take advantage of landlords. There are a lot of tenants out there that go from home to home living pretty much rent-free, knowing that there are landlords out there who won’t pull their credit or check their references. These kinds of tenants may pay a security deposit and the first month’s rent, but they may try and live for free in the unit for months after that.
- Are you willing to commit your time to being a landlord? Adding the tasks of managing, cleaning, and making repairs to your rental property can be a lot to handle, especially for those with full-time jobs and families. Being a landlord takes a lot of mental and emotional preparation.
Here’s the bottom line. Would you rather be a landlord or get top dollar for your home? The only way to truly know how much you stand to gain from selling your home is by meeting with a real estate agent like myself, since we are able to tell you the current market value on your home, what you could potentially get for it after expenses, and how long it will take to get it sold. At that point, you can decide what the best path is for you to take.
If you have any other questions about selling or renting your home or anything else related to real estate, give us a call or send us an email. We’d be happy to help you!