Should You Sell Your House or Rent It Out?

<article class="post-1268252 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1268252"><span class="entry-date">November 14, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Should You Sell Your House or Rent It Out?</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+Sell+Your+House+or+Rent+It+Out%3F&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fshould-you-sell-your-house-or-rent-it-out%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 Sell Your House or Rent It Out? Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20241113/20241114-Should-You-Sell-Your-House-or-Rent-It-Out-original.png" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>When you’re <a href="https://www.simplifyingthemarket.com/2024/10/31/how-real-estate-agents-take-the-fear-out-of-moving/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">ready to move</a>, figuring out what to do with your house is a big decision. And today, more homeowners are considering renting their home instead of <a href="https://www.simplifyingthemarket.com/2024/10/23/how-long-will-it-take-to-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling it</a>. </p>
<p>Recent data from <em>Zillow </em>shows about two-thirds (66%) of sellers thought about renting their home before listing, with nearly a third (28%) taking that possibility seriously. Compared to 2021, when fewer than half (47%) of homeowners considered renting before selling, it’s clear this trend is on the rise.</p>
<p>So, should you <a href="https://www.simplifyingthemarket.com/2024/10/22/planning-to-sell-your-house-in-2025-start-prepping-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sell your house</a> and use the money toward your next home or keep it as a rental to build long-term wealth? Let’s walk through some important questions to help you determine the right path for your financial and <a href="https://www.simplifyingthemarket.com/2024/11/12/whats-motivating-homeowners-to-move-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">lifestyle goals</a>.   </p>
<h4><strong>Is Your House a Good Fit for Renting?</strong></h4>
<p>Before you decide what to do, it’s important to think about if it would make a good rental in the first place. For instance, if you’re moving far away, managing ongoing maintenance could become a major hassle. Other factors to consider are if your neighborhood is ideal for rentals and if your house needs significant repairs before it’s ready for tenants.</p>
<p>If any of these situations sound familiar, <a href="https://www.simplifyingthemarket.com/2024/09/13/checklist-for-getting-your-house-ready-to-sell/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling</a> might be a more practical choice.</p>
<h4><strong>Are You Ready for the Realities of Being a Landlord?</strong></h4>
<p>Managing a rental property involves more than collecting monthly rent. It’s a commitment that can be time-consuming and challenging.</p>
<p>For example, you may get maintenance calls at all hours of the day or discover damage that needs to be repaired before a new tenant moves in. There’s also the risk of tenants missing payments or breaking their lease, which can add unexpected stress and financial strain. As <em>Redfin </em>notes: </p>
<blockquote><p><em>“Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.”</em></p></blockquote>
<h4><strong>Do You Understand the Costs?</strong></h4>
<p>If you’re considering renting primarily for passive income, remember, there are additional costs you should anticipate. As an article from <em>Bankrate </em>explains:</p>
<p><strong>Mortgage and Property Taxes:</strong> You still need to pay these expenses, even if the rent doesn’t cover all of it.</p>
<p><strong>Insurance:</strong> Landlord insurance typically costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.</p>
<p><strong>Maintenance and Repairs:</strong> Plan to spend at least 1% of the home’s value annually, more if the house is older.</p>
<p><strong>Finding a Tenant: </strong>This involves advertising costs and potentially paying for background checks.</p>
<p><strong>Vacancies:</strong> If the property sits empty between tenants, you’ll lose rental income and have to cover the cost of the mortgage until you find a new tenant.</p>
<p><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.</p>
<h3>Bottom Line</h3>
<p>To sum it all up, selling or renting out your home is a personal decision. 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 real estate agent can be a great person to go to for advice.</p>
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