Moving is both an exciting and stressful time. One of the biggest decisions to make is whether to sell your home or use it as a rental property. Both options have pros and cons, and it’s best to understand how to decide whether to sell or rent so that you can make the right decision for your family.
Consider Your Neighborhood
Take a look around your neighborhood: it’s possible that your neighborhood doesn’t attract renters very well. Or, if you have a high mortgage, you may have to ask for a high rent, which can deter potential renters. In that case, selling the home is the better option.
On the other hand, what’s the housing market currently like? Your realtor will know the temperature of the current market, so be sure to ask. If houses aren’t selling but people are desperate for rentals, it may be worth it to see if you can find a renter instead.
Consider Your Timeline
How much time you have before the move affects your decision about whether it’s best to sell or rent your home. If you’re in a hurry, you may not have the time to prepare your home to rent. Although selling requires preparation as well, renting out your home has its own set of steps to make sure it’s ready for the renters.
Determine Whether You’re Landlord Material
You can’t just rent out your home and forget about it the way you would if you sold the house. The property is still your responsibility, as are the renters. If owning rental property has always intrigued you, then renting out your home is a great way to start a property investment portfolio. However, if you aren’t prepared to manage the property by keeping track of rent, maintaining the property, and searching for new renters when necessary, then put the house on the market instead.
When you’re making the decision whether to sell or rent, keep these three things in mind: the neighborhood, your timeline, and the responsibility of owning a rental. Weigh the pros and cons for each, and you’ll reach the decision that’s best for you.
