Should I Rent or Sell My House?
Do you want to rent or sell your house? It can be a difficult decision. Renting means you have a passive revenue stream, but it also means you forego a significant cash payout. Selling means you’re not going to have the investment for the future, but it also means you can walk away free and clear. Here are a few things to consider.
Why Don’t You Want to Sell Your Home?
Often someone doesn’t want to sell their home because it has sentimental value (the family home), the market isn’t right, or the process is too intimidating. Those reasons are entirely valid. But there are other times when a homeowner doesn’t want to sell because their home is too hard to sell. It might be old or in poor condition. It might need major renovations. In the end, it might just cost too much to repair or sell.
That being said, there are always solutions. A home-buying company can purchase a home that needs repairs and renovations, even if the home wouldn’t pass an appraisal or an inspection. You don’t need to spend a lot of money repairing a house just to sell it. There are companies that specialize in doing this so you don’t have to.
Are There Advantages to Renting?
When does it make sense to rent out a property?
- If you’ll use the home in the future. It might be too big or too small for you now, but you might be planning on downsizing or upsizing later. In this situation, you might want to rent out a property temporarily.
- If you’re in a hot rental market. If the rent rates are much higher than the mortgage rates in your area (and climbing), renting your home out could make sense. While there are still inherent risks, you may be able to make money this way.
- If you’re thinking of becoming a landlord. If you want to collect properties and rent them all out as a side job, then it makes sense to start with your former home. But most people don’t want to make landlording into their entire job. They just want a revenue stream from a single property.
But there are both advantages and disadvantages to renting.
In terms of advantages, you have a revenue stream and are able to continue building equity. But the disadvantages are significant. It can take a long time to manage a property, even one. And when issues occur such as evictions, it can cut into any profit that was made. Renting a property takes time, and even if you hire a property management company, there will be decisions that need to be made and money that has to be put into maintaining the property.
What Should You Do Next?
At this point, you probably have a good idea of whether you want to rent or sell. If you’re trying to rent because there are things holding you back from selling, you should know that it can be easier to sell a property than you think.
But it all begins by getting a number.
Connect with a home-buying company to find out how much you could make by selling. It could be enough that it makes more sense to sell and put your money in other investments. You may be surprised to find out that your home will sell even if there are some significant issues, such as renovations that need to be made before the home can be lived in. Once you know how much money you could be looking at, it makes it easier to decide between selling and renting.
While sometimes renting out a house can make sense, it’s often more trouble than it’s worth. If you want to sell your home fast, contact Frank Buys Houses. We can make you an offer ASAP so you can make an educated decision about your future.