Homeowners have many factors to consider when they are relocating out of the area and deciding whether to sell their property or rent it out. After thinking about these initial things, you will be more prepared to make the decision that’s best for you.
Consult with an Agent
Speak with a reputable real estate agent. A Realtor can help you determine the current market value of your home based on existing market conditions in your area. The agent can also explain what might need to be done to the property in order for it to sell and what the costs would be to sell. If you have not lived in the home very long and the market has not increased in value, the best decision is to rent the property out. When you do that, you can build equity until you’re ready to sell it at later time.
Repair and Maintenance Costs
When you want to rent it out, consider if you have enough money set aside to make any necessary repairs. You will need to maintain the home and keep it in good condition for your tenant. Tenants won’t want to wait for repairs while you save up to make them.
Mortgage and Tax Considerations
Think about whether you can afford to pay your mortgage if the tenant’s rent is late or you have a vacancy period. Talk to a tax expert who can explain the tax advantages and disadvantages involved in owning a rental property. These change based on your personal situation, so speak with someone who understands your financial picture and can explain the implications prior to tax time.
Plans to Return
Sometimes homeowners still can’t make a decision. They know they will be okay financially either way. In these cases, I ask if they would ever consider returning to the area. If it’s a place where you can see yourself living in the future, the it’s a good idea to hang onto the house and rent it out. When you return to the area, you’ll have a place to live once your tenant’s lease is up.
Selling and Renting Together
Many people ask if a property owner can list the home for sale and rent at the same time and take whichever happens first. This is a good strategy and it can be done. Make sure your real estate agent and property manager consult and communicate frequently so if you accept an offer or sign a lease, it’s pulled from other market.
We are always available with a team of experts to answer any questions you might have. If you’re not sure whether to sell your home or place it on the rental market, please contact us at Century 21 Prestige.