You are moving out of your home, and now you are faced with the difficult decision on whether it would be better to sell it or to keep it and rent it out. There are a lot of factors at play that can help you make the right choice for you and your situation. By examining them closely you can make the decision just a little bit easier.
Is Your Move Long or Short Term?
Are you moving out of the area on business, but expect to return someday? Do you plan on taking an adventure to another part of the country or even the world, but expect to be back eventually? These are the type of scenarios where it may make more sense to keep ownership of your home and rent it out. When the project you transferred for is over or you get homesick after a few years of living somewhere else, you will still own your home and be able to return to it.
Home Prices Are Expected to Rise over the Next Few Years.
When home prices are at a slump it can be tempting to jump into that bigger house you have been wanting, however you may find yourself selling your own home for a loss. If the property value downslide is expected to take a turn towards the heavens in the near future, it might make sense to keep it as a rental property until it’s value has risen. When the home market has gotten a bit more favorable for you, you can turn around and sell it for a profit.
This scenario makes the most sense if you are able to charge enough rent to cover your expenses such as your mortgage and property taxes. When you are doing the math, make sure to look into any tax breaks you may receive as a landlord. They may help offset the cost if rent won’t quite cover everything. If you need the income from selling your house to finance your new home, this might not be your best option.
Can You Handle the Responsibilities of being a Landlord?
Does the thought of picking up a hammer give you cold sweats? Are you terrified at the thought of dealing with tenants? Are you the type of person who can handle evicting a tenant who doesn’t pay? If you don’t feel up to the task of renting a property, you might find yourself eager to list your home on the market. You don’t necessarily have to do those things yourself, however. You can hire a property management company to handle the day to day issues with renting out a property and sit back and collect the rent.