Should you rent it or sell it?
So, you’ve decided it is time to move. If you are in the position where you do not need to sell your current home to buy the new home, you can either rent out your house or you can sell it. Both choices come with the good and the bad. Consider these points when deciding which choice is the right one for you:
Rent It?: The main reasons for keeping it as rental property are the monthly rental income and increase in equity over time. The good news is, both of these increase your income! The bad news is, there’s no such thing as a free lunch (I know, bummer!) and you can’t have a rent property without tenants. Let’s be real here—the main reason that everyone isn’t a landlord is because it takes work to be successful at it. Being a landlord can be the best of times and the worst of times. Sometimes stuff happens—to the house or to that once fantastic tenant. Bumps in the road are all part of being a landlord. Unfortunately, nobody talks about the good side of it—most of the stories you hear are the truly horrific. However, bad news tends to make a sexier headline. Yes, bad things can happen, as owning rental property has inherent risks. However, you can mitigate the risks as much as possible to set yourself (and your wallet) up for a more pleasant experience. Take the time to do some research before you completely cross it off your list as a possibility. If you don’t want to deal with the daily management tasks, consider hiring a property manager. It’s an option worth considering and you aren’t locked into it as a rental forever—you can always test the waters and then sell it later, if it is not for you!
Sell It?: The main argument for selling it doesn’t really need to much of an explanation—you sell it, get your funds and you’re done with it. However, there are some downsides too. Once you sell, any equity building in property stops. If you’ve already moved out by the time it hits the market, you’ll have to pay for the holding costs while the property is on the market (taxes, insurance, utilities, etc.) Best-case scenario, it sells fast for fair market value and worst-case, it sits on the market awhile before selling. It’s the more popular of the two choices for a reason—it is a short-term commitment with no long-term responsibilities.
Everyone will have a different take on what should and shouldn’t be done, but at the end of the day, only you can make the choice that works best for you. What works for one may not work for another, so consider all the pros and cons and take the time to make the right decision. It is great to have options!
Lisa Priest loves a good “pro/con” list and is a local Palestine, Texas Real Estate Broker and Property Manager with Picket Fence Realty, Inc. You can reach her via phone or text at 903-948-3343 or read more at BuyPalestine.com.