Did you know that 13% of Americans move each year? If you have a home you’re thinking about selling, you might want to consider using it as a rental property. But if the thought of being a landlord terrifies you, selling could be the better choice.
Which way should you go? Read on to learn whether you should sell or rent out house!
Sell a House in a Seller’s Market
A seller’s market is one where there aren’t a lot of homes for sale. As a result, anyone selling a home stands to do well since the inventory is low. If the conditions are ripe for a seller’s market, sell a house to get more of a profit.
How much has your home’s value increased since you purchased it? If it has beaten the typical average of a 3% yearly increase, your equity might be substantial. For instance, in a robust year, your home’s value might be 5 or even 7% higher.
That translates to money that you’ll want to invest in a new home. Or you even could funnel the extra cash into buying a house to rent out.
Sell When You Need More Money
If you lost your job or need cash to cover your child’s college education, house selling might be the right path. When you rent, you may be able to get a monthly payment that pads your bank account. But there’s not a guarantee of this.
Selling, by contrast, can provide a bigger sum of cash upfront. You can downsize to a smaller property or move into a less expensive apartment once you sell your home, too. That means you could wind up with thousands of extra dollars rolling into your bank account.
You can go with the traditional approach to house selling, which involves using a real estate agent. But this process comes with an unknown timetable and lots of hidden fees.
Turn to emperorhousebuyers.com when you need a quick turnaround time. You’ll get a cash offer on your house as-is. Better yet, you can determine a timeline for closing that meets your needs.
Sell to Avoid Maintenance Costs
When you choose to rent your home, you step into the role of being a landlord. If you’re handy and live nearby, this might not be a big deal. But if you don’t know a lot about fixing leaks or repairing door hinges, you might not want the hassle of dealing with problems.
Renting comes with a lot of potential maintenance that you’ll need to complete to keep the space livable. A clogged drain or leaky roof can yield hundreds or thousands of dollars in unforeseen costs. If you don’t have the cash handy, selling can make more sense.
Gauge the age of your home’s roof, HVAC system, and windows. A home with aging appliances will require more maintenance. Sell a house that looks primed to become a money pit!
Rent Out House You’ll Want Back
If you’re making a temporary move and plan on returning to the area, you might want to go with renting. That way, you won’t have to pay the expenses of closing fees and go through the hassle of finding a new home again.
You also may want to go with renting if you have an emotional attachment to a home. For instance, maybe you inherited your grandmother’s house. A place that you grew up visiting could be too hard to part with right away.
Consider renting at least until you have the emotional space to make a more informed decision. Plus your family members may be happy that you’ve kept the home in the family!
Rent in a Trending Neighborhood
Wondering how to rent out a house? In a trendy neighborhood, you won’t have much of a problem. When you own a home in a neighborhood that’s on the rise, give renting a try.
People will be willing to pay a premium price for access to a nice restaurant district or good school system. Check the home prices in your area to see if they’ve been increasing. While you’re at it, look at crime rates and economic growth.
If all signs point toward prosperity, rent your home. Create an online listing with professional pictures and stats. Add your listing to rental directories and start screening applicants.
A neighborhood that’s moving downhill is not one where you’ll want to rent. There’s a better chance you’ll struggle to fill the home. And you might need to lower your rent charges to a point where it’s not profitable.
Rent to Gain Secondary Income
One of the big benefits of renting is the potential for a secondary income that doesn’t require a lot of effort. If you can find good long-term tenants, you’ll be able to make a reliable bit of extra cash. Create an application to verify that a tenant has the means to pay, and determine the terms for backing out of a rental contract.
In addition, you’ll want to price your rental rate so that it’s higher than your monthly mortgage payment. This ensures that you score a profit.
Just be sure you have a contingency plan if the home is dormant. After all, you’ll potentially have two mortgages if you’ve purchased another house.
Make the Right Real Estate Decision
Still wondering whether to rent out house or sell? If you own a home in an area that’s popular, it could be worth renting so you’ll gain a profit from the home’s rising value. But if you’re in a seller’s market or need money, sell a house fast to unload the property.
For more tips to navigate the real estate market, check back soon for new articles.