Should I Sell or Rent My Home? How to Decide When to Stay or Leave
Should I sell or rent my home? Many Washington homeowners don’t know the answer, but we have advice to help guide you to the best decision for your family.
Do you own a second property? Perhaps you are just looking to move and are unsure of what you want to do with your current property?
The standard approach is to sell one home when you move into another, but there is a second option.
More and more homeowners are asking themselves should I sell or rent my home. Keep reading to find out which is the best answer for you.
Can You Afford to Rent Your Home?
There are many renting vs. selling pros and cons that you need to consider when asking yourself should I sell or rent my house.
The main one is whether you can afford it. If you decide to keep your old home and rent it out, that means you are going to be retaining that mortgage and recurring costs.
Yes, renting out your home is going to supplement some of that income, but what about the periods where you have no tenants? There will also be the additional maintenance costs and ongoing work required. A good rule of thumb is to have at least 3 months of mortgage plus 10-20% of your mortgage set aside to deal with times of vacancy. The intent, of course, is to have your place rented as much as possible. That said, if you aren’t prepared to cover the expenses, you could have a disaster on your hands if you find yourself needing to cover the mortgage or repairs out of pocket. It’s much better to know you are prepared.
Being able to afford something is not just about money, but also time wise. If you have a young family, a busy job, live a distance away from your old home, these are all things that impact whether you can afford to become a landlord. If you have the financial stability but not the time, that’s a good time to consider hiring a property manager that fits your budget.
Is it a Buyers or a Sellers Market?
The second thing to consider, if you decide that you can afford to rent out your house is how the current market stands. If it is a buyer’s market, and you do have the financial flexibility to hold onto your property, then renting might be the best idea. As a landlord, you benefit from future market appreciation while the cost of the home is being subsidized (or covered entirely) by a tenant.
You could even look into short-term leases, to help keep the property in your control until the market has shifted a little.
On the contrary, if it is a seller’s market, then selling your home could make the most sense. Being a landlord does take a lot of time and commitment, and if you can get a good price for your old home, taking it might be the best thing. You’ll need to consider your overall goals when making this decision.
Selling doesn’t mean the end of your landlord dreams. You could save some of the proceeds and look to invest in smaller/less expensive rental properties at a later date or in a different real estate market.
The Answer to Should I Sell or Rent My Home Is…
The simple answer to should I sell or rent my home is that it depends entirely on your current circumstances and your long term goals. If you feel that you can accept the risks in exchange for the rewards of renting, then go for it.
There is something to be said about having a second source of income in the form of solid assets like property. However, it is not something to be done if you are not sure that you can do it properly.
Whatever decision it is you take, we are here to help you through the process. From offering property management resources through the home listings, we’ve got you covered.
Get in touch today and let’s see how we can work together to get the best possible outcome for you. We can even provide a free rental analysis to help you decide.