Most homeowners will have to face the hard decision of whether to sell or rent their house when the need to relocate comes up. Your company may be relocating you, or you need a bigger house for your growing family. Whatever reason it is for leaving your home, you need to carefully consider every aspect in the “renting vs. selling” decision.
Analyze Your Situation: The Key to Renting vs. Selling
What you need to know is that there is no universal answer to whether to sell or rent out your house. The decision should be based on your personal situation, where you are in life, and where you see yourself going.
You need to analyze your situation and ask the following questions:
- Do I need the cash that I can get from selling?
- Will I earn from renting out the house despite expenses?
- Is there a chance that I will return to my old home?
- Do I want my children to inherit this house?
Asking yourself these questions will help you decide on what to do.
Renting vs. Selling: Should You Sell Your House or Rent it Out?
To carefully analyze your situation, you need to do the following:
1. Do the math. Consulting San Antonio property management can help you in this step. If you rent out the property and deduct all of the expenses involving the property (taxes, management fees, utilities, mortgage, HOAs, and repairs), will it produce a monthly loss or profit? Do not miss this step. If you need the help of an accountant or financial adviser, consult one.
Same goes as with selling the property. If you sell it, will you get a reasonable profit after deducting costs like closing costs and agent commissions? If not, then it’s probably best to hold on to your property for a while. Make sure to think more about it and see if the value goes up at all.
2. Consider your future plan. Another thing to do to answer the question of should you sell your house or rent it out is to sit down and think about your future plans. Do you have a business venture in mind that you would like to invest in? If yes, consider if selling the house and using the proceeds would be best.
However, if you’re looking to have a secured steady stream of income for when you retire, renting will be best. That is if you saw that you will profit from renting your property. This will give you a relatively passive source of income when you retire.
Can Consulting a Property Manager Help?
Consulting a property manager can shed light on the expenses involved in managing a rental house. This is helpful if you’re not really sure of the costs and responsibilities involved in renting out a property. Here at the Pyramis Company, we provide useful tips to homeowners to help you make the best decision on renting vs. selling.
The right thing to do depends on your situation. Take the time to analyze your financial standing and future plans. Consider consulting a property manager to help you make an informed decision.