Did you know that more households are renting now than at any other point in the past fifty years? If you’re about to move, you’re likely asking yourself, Should I sell my house now? Or should I rent it out to tenants?
While there is nothing wrong with selling, it’s important to remember that there are a whole lot of benefits that come with renting. If you want to learn more about them, you’re in the right place.
In this article we’ll help you decide whether or not renting your property is the right decision for you.
Good Cash Flow
If you sell your house, then you get a one-time payment. However, typically this will be placed directly into the next property you buy. Renting your property gives you the benefit of continuous cash flow.
What’s more, for the most part, this is usually passive income, especially if you go with a good property management company instead of being a landlord.
This often works out great because you can put this new cash flow towards bills, expenses, or even a second mortgage. Or, you can use it to save for big expenses like college funds or retirement accounts.
At the end of the day, it’s often a better choice to keep a chicken for eggs than sell it off completely.
Allows You to Avoid Double Mortgage Payments
If you line up everything perfectly, then it’s possible to avoid double mortgage payments. But, the reality is that this is rarely the issue.
All too often, families have time constraints, like a new job or school year, that affect when they can move. It can be extremely difficult to find the perfect buyer in this tight timeframe.
Because of this, it’s common for people to have to pay double mortgage payments — one on their new home and another on their old one. Renting is the solution to this problem.
It allows you to pay for one of the mortgages while keeping your house on the market. That way, you can buy time until you find the perfect buyer.
When tax season rolls around renting can even help you save money on your tax return. How? Thanks to tax deductions related to property depreciation.
Every year you get to deduct the amount of money that the home depreciated from the taxes you owe. If you want to learn more about how to calculate this depreciation, you can read the IRS guide for more details.
In addition to the depreciation deduction, you can also take advantage of any repairs, insurance payments, and mortgage payments you made on your first home. There are tax deductions for each of these areas.
Allows You to Sell Later
Sometimes it’s just a bad time to sell your home. Maybe you’re having a difficult time finding the perfect buyer for your needs. Or, you might just not be ready to give up the home.
Maybe you grew up in it, or it has sentimental value. Regardless of the reason, renting your home gives you the freedom to sell it when you are ready. There are lots of benefits that come with selling later, too.
For one thing, property generally increases in value over time. So, you can get a much better price for it when you decide to sell.
Let’s Someone Keep an Eye on the House
If you’re waiting to sell without renting odds are your old house is empty. Sadly, this is a recipe for disaster in certain areas. Thieves can easily break-in, and squatters can live there without any repercussions.
Believe it or not, tenants are great for security. No one wants to break in when someone is home. So, by having someone rent you can fend off any potential squatters until you’re ready to get rid of the property.
Renting Is Popular Right Now
As we mentioned at the start of the article, renting has never been more popular. That means there are tons of options for you out there in terms of your tenants.
By getting the cream of the crop, it’s much easier to ensure that you get a respectable tenant that treats your property with respect. At the very least, it should be easy to find multiple interested parties.
Should I Sell My House Now or Rent? Considerations
The first thing you should look for is if there’s demand for a property rental in your area. If you live in or near a major city, college, or tourist destination, odds are there’s a high demand for rentals.
But, it might be more difficult to find them in rural areas. Next, you should ask yourself if you’re ready to be a landlord. Remember that when you become a landlord it’s hard work.
It requires you to keep up with repairs, renovations, and even possible evictions. If it sounds like too much, then you can sell or hire a property manager.
If you want to learn the difference between a landlord and a property manager, you can read our guide here.
The last consideration is whether or not you can sell it for a profit. If you get a great price on your real estate, it might be worth taking if it’s a real deal.
Need Help Renting Your Property? Contact Reedy & Company
We hope this article helped you answer the question, Should I sell my house now? It’s important to realize that there is no one-size-fits-all answer to this question. That’s because it varies on a case-to-case basis.
If you do decide to rent, the most important thing is to find a good property management business like Reedy & Company.
We have over forty years of experience in the industry, which means we’ve seen it all when it comes to renters. So, if you’re ready for the property management you deserve contact us today.