So you’ve found a great house that you love. Unfortunately, something has come up and
you need to move to a new one, or maybe it is just time to upgrade or downsize. You have two choices: Rent or Sell.
Rent vs. Sell
Like many things in life, there really is no easy answer to this situation. There is a lot of hard work that goes into renting a home, but the benefits can be worth the struggle. And, on the other side, selling your home lets you walk away with a check in your hand that can be used however you’d like. Both have their advantages and offer short-term gains vs. long-term gains.
Pros and Cons of Renting
If you take the rental route, you will have what is called an investment property. It may sound great having someone else pay your mortgage, but you also need to decide if being a landlord is something you want to take on. If everything goes right, having that extra money in your pocket each month can be worth the slight stresses of renting out your property.
You’ll need to make sure that you charge the renters enough each month to cover your mortgage payment, as well as any repairs and maintenance that is needed for the home. You could come across tenants who don’t pay rent on time, or at all, which can really cause a setback. If you don’t have a backup plan, things could get dicey real quick.
Property Management
Something that can help alleviate the stress of managing renters, is to work with a property management company. There are a number of companies that exist in Central Florida area. Central Florida property management is more challenging than other housing markets and takes a professional company with experience to be successful.
Charging Rent
When deciding how much to charge your tenants, be sure to factor in not only the mortgage but property taxes as well. Don’t forget about the little things like air filters, cleaning fees for the gutters and chimney, or any other regular maintenance needs.
If the rent you are charging your renters isn’t enough to cover everything, you need to decide if you want to pay for those added expenses. Is it worth it in the long run? If everything goes positively, later on down the road you will be able to sell your home for a much higher profit.
Pros and Cons of Selling
The most appealing part of selling your home is the check and getting to walk away. Of course, the sale process isn’t always super easy, but having that extra money to use towards something else, like a down payment on a new house, or even something like retirement, can be appealing to some.
Take the Money and Run
If you don’t want the added stress of being a landlord, selling might be the right choice for you. If you have a regular job on top of being a landlord, the pressure can easily add up. There may be emergency middle-of-the-night calls that are expected to be handled immediately, advertising expenses, background check costs, showing the home to different tenants, and you may have to deal with renters that just don’t want to follow your rules.
Going through the selling process can certainly be some work up front, but will definitely pay off in the end. Selling your house allows you to be free of any stress or anxiety when it comes to being responsible for someone else.
Even if you rent your home now and plan on selling it later, you will need to make sure that the people who are currently occupying your home and responsible enough to not destroy anything. Selling your home allows you the peace of mind knowing that you control the condition your house is in while going through the sales process.
Bottom Line
The choice to rent or sell your home may not be an easy one. If you are having a hard time deciding, using some of the topics we discussed, write down a pro and cons list that is tailored to you and your particular situation. Every situation will be unique, but laying everything out in front of you will be a huge help.
So you’ve found a great house that you love. Unfortunately, something has come up and you need to move to a new one, or maybe it is just time to upgrade or downsize. You have two choices: Rent or Sell.
Rent vs. Sell
Like many things in life, there really is no easy answer to this situation. There is a lot of hard work that goes into renting a home, but the benefits can be worth the struggle. And, on the other side, selling your home lets you walk away with a check in your hand that can be used however you’d like. Both have their advantages and offer short-term gains vs. long-term gains.
Pros and Cons of Renting
If you take the rental route, you will have what is called an investment property. It may sound great having someone else pay your mortgage, but you also need to decide if being a landlord is something you want to take on. If everything goes right, having that extra money in your pocket each month can be worth the slight stresses of renting out your property.
You’ll need to make sure that you charge the renters enough each month to cover your mortgage payment, as well as any repairs and maintenance that is needed for the home. You could come across tenants who don’t pay rent on time, or at all, which can really cause a setback. If you don’t have a backup plan, things could get dicey real quick.
Property Management
Something that can help alleviate the stress of managing renters, is to work with a property management company. There are a number of companies that exist in Central Florida area. Central Florida property management is more challenging than other housing markets and takes a professional company with experience to be successful.
Charging Rent
When deciding how much to charge your tenants, be sure to factor in not only the mortgage but property taxes as well. Don’t forget about the little things like air filters, cleaning fees for the gutters and chimney, or any other regular maintenance needs.
If the rent you are charging your renters isn’t enough to cover everything, you need to decide if you want to pay for those added expenses. Is it worth it in the long run? If everything goes positively, later on down the road you will be able to sell your home for a much higher profit.
Pros and Cons of Selling
The most appealing part of selling your home is the check and getting to walk away. Of course, the sale process isn’t always super easy, but having that extra money to use towards something else, like a down payment on a new house, or even something like retirement, can be appealing to some.
Take the Money and Run
If you don’t want the added stress of being a landlord, selling might be the right choice for you. If you have a regular job on top of being a landlord, the pressure can easily add up. There may be emergency middle-of-the-night calls that are expected to be handled immediately, advertising expenses, background check costs, showing the home to different tenants, and you may have to deal with renters that just don’t want to follow your rules.
Going through the selling process can certainly be some work up front, but will definitely pay off in the end. Selling your house allows you to be free of any stress or anxiety when it comes to being responsible for someone else.
Even if you rent your home now and plan on selling it later, you will need to make sure that the people who are currently occupying your home and responsible enough to not destroy anything. Selling your home allows you the peace of mind knowing that you control the condition your house is in while going through the sales process.
Bottom Line
The choice to rent or sell your home may not be an easy one. If you are having a hard time deciding, using some of the topics we discussed, write down a pro and cons list that is tailored to you and your particular situation. Every situation will be unique, but laying everything out in front of you will be a huge help.
Sources:
Redfin, “Should I Sell My House or Rent It Out?” Retrieved from: https://www.redfin.com/resources/sell-house-or-rent. March 16, 2018.
Money Crashers, “Should You Sell Your House or Rent It Out? – Things to Consider” Retrieved from: https://www.moneycrashers.com/should-sell-rent-house/. March 16, 2018.
Redfin, “Should I Sell My House or Rent It Out?” Retrieved from: https://www.redfin.com/resources/sell-house-or-rent. March 16, 2018.
Money Crashers, “Should You Sell Your House or Rent It Out? – Things to Consider” Retrieved from: https://www.moneycrashers.com/should-sell-rent-house/. March 16, 2018.
