In real estate, homeowners find themselves troubled by an age-old question: Is it better to rent or sell the home altogether?
In truth, the answer will depend on a number of variables that require your full consideration.
Ask yourself these five questions before making a decision to see which option best fits your needs.
1) How Much Responsibility Do You Want?
Renting out your home is a fantastic way to get a little extra income while still maintaining ownership of your property.
However, you'll need to know that renting comes with a certain set of strings attached. Namely, you're agreeing to serve as a landlord to your renters.
While some people aren't bothered by the idea, others look at the laundry list of responsibilities and find it easier to sell their home outright.
Here is a quick list of everything you'll become responsible for by acting as a landlord:
- Basic home repairs
- HOA fees
- Property taxes
- Pest control
- Collecting rent
- Advertising your home
- Screening prospective renters
In truth, it's a lot. And not every homeowner finds themselves cut out to be a landlord, which is understandable. Are you willing to take on these responsibilities?
2) What Does the Market Suggest?
Even if you've never sold or rented a home before, you're likely aware of how temperamental the real estate market can be. A large part of your decision should rely on market forecasts. After all, you wouldn't want to sell a home in a renter's market or vice versa.
Before making a decision, see what the current outlooks suggest.
For instance, the rental market is currently booming, with 76 percent of tenants viewing a rental home as more viable than purchasing a home.
But don't be surprised if this trend swings in favor of home ownership within the next few years.
3) How Are Your Finances?
Everyone has their own unique set of financial circumstances. As such, it may be necessary to sell your home for a lump sum instead of receiving a slow drip of income each month.
Of course, if you're looking to diversify your earnings and can determine a decent leasing price, renting your home can give your wallet a little extra padding.
4) What Is the Condition of the Home?
When analyzing the rent vs. sell debate, don't forget to take your home's condition into account. After all, no one is going to want to buy or rent a home with leaky faucets and water-damaged ceilings.
There are plenty of real estate companies that specialize in buying older or worn down homes, fixing them up, and then selling them at a profit.
Of course, you can make the necessary repairs yourself, however, you may end up losing quite a bit of money in the process.
5) Why Are You Vacating Your Home?
If you intend to leave the area, being a landlord may not be the most feasible option. If you're looking to rent, it's a good idea to make sure you're within an hour's drive or so and can get to the home in case of an emergency.
Conversely, if you're moving to a new town or state, selling your home and moving on can give you some peace of mind.
Rent or Sell: The Final Word
If you came to this article hoping to get a conclusive answer to rent or sell debate, you may find yourself disappointed. At the end of the day, it's hard to give a definitive answer when everyone's circumstances are quite different.
If you can afford to live nearby and don't mind serving as a landlord, the market favors renting. However, if you're looking to move or don't want to deal with tenants, selling your home outright could be the best call.
Get in touch today to more about how you can get the most value for your home.