Should You Rent Out Your House Instead of Selling It?
Is it time to move into a new home? If so, you might want to consider renting out your old house instead of selling it.
Of course, selling your house is a big decision, so you should be sure to weigh all of your options before making this decision.
Renting out your home can offer a number of benefits. While selling your home is likely what you were originally planning on doing, doing so could make you miss out on the many benefits of renting out your house.
Let’s take a look at a few reasons you might want to rent out your house instead of selling it.
Why Rent Out Your House?
There are plenty of reasons you should consider renting out your house.
The first benefit of renting out your property is the potential to generate additional income.
Becoming a landlord can be fairly lucrative. While you likely won’t make enough to completely support yourself from one property, you can still make a decent side income by renting out your home.
Even if you haven’t paid off your mortgage, you should be able to make enough to cover your mortgage payments plus a couple of hundred extra dollars per month.
Real Estate Investment Experience
Real estate investment can be a very lucrative endeavor. However, it’s often an intimidating profession to dive into.
If you’ve ever wanted to jump into the world of real estate investing, this could be a great opportunity.
Renting out your home could give you the experience you need to continue pursuing real estate investing in the future. You can try it out for yourself to see if it’s something you would be interested in doing again.
If not, you can always sell your property in the future.
Wait for Property Values to Rise
Depending on your current real estate market, now may or may not be a great time to sell.
If now isn’t the best time to maximize your returns, you can rent out your home while you wait for property values to increase. This gives you the opportunity to generate additional income and to sell your property int he future once it is worth more.
Renting Out Your House: The Disadvantages
As with anything, renting out your home also has its negatives.
You’ll have to continue paying to run and maintain your property. These expenses include:
- Property Taxes
- HOA fees
These fees, among others, could be a burden if you aren’t making enough from renters to cover your expenses.
Being a Landlord Isn’t for Everyone
As a landlord, you’ll have to deal with tenants and handle their concerns as they arise.
Owning a rental property requires a lot of time and effort in order to be successful. If you choose to hire a building manager instead, you’ll have to add their salary to your already large list of expenses.
Should You Rent Out Your House or Sell?
Renting vs. selling is a difficult decision. Ultimately, it comes down to your circumstances and preferences.
If you are relying on the sale of your current home to pay for a down payment on your next home, then renting may not be a great idea.
Alternatively, if you can afford to buy a new home without selling your old home, and you have the time to dedicate to managing a property, then renting out your home could be a great idea.