Should You Rent Out or Sell Your House?

<article class="post-1140634 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1140634"><span class="entry-date">July 31, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Should You Rent Out or Sell Your House?</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Should+You+Rent+Out+or+Sell+Your+House%3F&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fshould-you-rent-out-or-sell-your-house%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Should You Rent Out or Sell Your House? Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240731-Should-You-Sell-Or-Rent-Out-Your-House-original.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>Figuring out what to do with your house when you’re ready <a href="https://www.simplifyingthemarket.com/2024/07/11/why-moving-to-a-smaller-home-after-retirement-makes-life-easier/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">to move</a> can be a big decision. Should you sell it and use the money for your next adventure, or keep it as a rental to build long-term wealth?</p>
<p>It’s a question many homeowners face, and the answer isn’t always straightforward. Whether you’re curious about the potential income from renting or worried about the responsibilities of being a landlord, there’s a lot to consider.</p>
<p>Let’s walk through some key questions to ask to help you make the best decision for <a href="https://www.simplifyingthemarket.com/2024/07/09/why-your-asking-price-matters-even-more-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">your situation</a>.</p>
<h4><strong>Is Your House a Good Fit for Renting?</strong></h4>
<p>Even if you’re interested in becoming a landlord, your current house might not be ideal for renting. Maybe you’re moving <a href="https://www.simplifyingthemarket.com/2024/07/22/how-affordability-and-remote-work-are-changing-where-people-live/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">far away</a>, so keeping up with the ongoing maintenance would be a hassle, the neighborhood isn’t great for rentals, or the house needs significant repairs before you could rent it out.</p>
<p>If any of this sounds like it might apply, <a href="https://www.simplifyingthemarket.com/2024/06/25/how-long-will-it-take-to-sell-my-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling</a> might be your best option.</p>
<h4><strong>Are You Ready for the Realities of Being a Landlord?</strong></h4>
<p>Managing a rental property isn’t just about collecting rent checks. It’s a time-consuming and sometimes challenging job.</p>
<p>For example, you may get calls from tenants at all hours of the day with maintenance requests. Or you may find a tenant causes damage you have to <a href="https://www.simplifyingthemarket.com/2024/07/17/why-fixing-up-your-house-can-help-it-sell-faster/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">repair</a> before the next lease starts. You may even have to deal with people falling behind on payments or breaking their lease early. <a href="https://www.investopedia.com/financial-edge/1011/top-6-tips-for-turning-your-home-into-a-rental-property.aspx" rel="noopener noreferrer" target="_blank"><em>Investopedia</em></a><em> </em>highlights:</p>
<blockquote><p><em>“It isn’t difficult to find horror stories of landlords troubled with more headaches than profits. Before deciding to rent, consider talking to other landlords and doing a detailed cost analysis. You might find that selling your home is a better financial decision and less stressful.”</em></p></blockquote>
<h4><strong>Do You Have a Good Understanding of What It’ll Cost?</strong></h4>
<p>If you’re thinking about renting out your home primarily to generate extra income, remember that there are additional costs you’ll want to plan for. As an article from <em>Bankrate </em>explains:</p>
<ul>
<li><strong>Mortgage and Property Taxes:</strong> You still need to pay these expenses, even if the rent doesn’t cover all of it.</li>
<li><strong>Insurance:</strong> Landlord insurance costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.</li>
<li><strong>Maintenance and Repairs:</strong> Plan to spend at least 1% of the home’s value annually, more if the home is older.</li>
<li><strong>Finding a Tenant:</strong> This involves advertising costs and potentially paying for background checks.</li>
<li><strong>Vacancies:</strong> If the property sits empty between tenants, you’ll lose rental income.</li>
<li><strong>Management and HOA Fees:</strong> A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.</li>
</ul>
<h3>Bottom Line</h3>
<p>To sum it all up, <a href="https://www.simplifyingthemarket.com/2024/06/10/selling-smart-why-a-real-estate-agent-makes-all-the-difference/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling</a> or renting out your home is a personal decision that depends on your circumstances. Whatever you decide, taking the time to evaluate your options will help you make the best choice for your future.</p>
<p>Make sure to weigh the pros and cons carefully and consult with professionals so you feel supported and informed as you make your decision. A <a href="https://www.simplifyingthemarket.com/2024/07/15/why-working-with-a-real-estate-professional-is-crucial-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate agent</a> can be a great person to go to for advice.</p>
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