Whether it’s relocating for a new business venture, or upgrading your home to start a family, it can be a little daunting to make the final decision: to sell your existing home or to rent it out. We’ve compiled a few key aspects to consider in the decision making process.
The number one concern that immediately comes to mind is, that’s right… MONEY! Will your home turn a profit and which decision will give you more bang for your buck? Now, when deciding to sell, you must consider the potential market. Luckily, in 2020, there are new people entering the market and looking to find a forever home and interest rates are projected to remain low. According to the US News World Report, Orlando is the one of the fastest growing cities in America, meaning more potential buyers, and a higher chance of selling your home within the first 60 days and receiving a faster return.
You may also want to look at how long you have lived in the home. The longer you live in the home, the more equity you’re building. The more equity, the more profitable your property can be. Having high equity also appears more attractive to lenders and sellers when you begin your own search for a new home. Consider how long you’ve been in the home and know where you stand regarding equity. Knowing all of this will allow you to understand your position and make your decision easier.
If you decide to rent out your home, you would acquire the role of a small business owner. Or in other words, become a landlord. This new role requires a lot of responsibility, and time to keep up with the good, the bad, and the ugly of maintaining the home’s value. You will need to be available at any time if the tenants need you for any repairs or have inquiries about making any changes. If you don’t want to work directly with the renter, there are companies that you can hire to oversee the property.
If you are leaning towards renting, you should first consider all the expenses associated with the rental such as HOA fees, utilities etc. Compile the total monthly expenses and subtract them from the rent. If you’re in the red, you should probably consider selling. Renting could potentially be a great business venture and have a positive return it just depends on whether the decision is right for YOU.
The Final Decision
In any decision-making process, you must weigh the advantages and disadvantages of each option and decide which is the best option for you. Identify your main concerns, and what you value most. By selling, you can make a fast return, use the money you gain towards a new home, and allow an easier transition. If you decide to rent it out, you can have a constant flow of income, however, it requires a lot of hands-on communication and the risk of inconsistent tenants. If you’re having trouble, working with a real estate agent will be able to help you narrow it down, and make the decision that best suites you and your needs. Good Luck!
Brown Home Group at Keller Williams
“Central Florida Cities Among Fastest Growing in US.” U.S. News & World Report, U.S. News & World Report, www.usnews.com/news/best-states/florida/articles/2019-04-18/central-florida-cities-among-fastest-growing-in-us.
“Selling vs. Renting: The Pros and Cons.” UpNest, www.upnest.com/1/post/selling-vs-renting-the-pros-and-cons/.
Thorsby, Devon. “Why You Should Sell Your Home in 2020.” U.S. News & World Report, U.S. News & World Report, realestate.usnews.com/real-estate/articles/why-you-should-sell-your-home.
Turner, Brandon. “Should You Sell Your House or Rent It Out?” Forbes, Forbes Magazine, 4 Oct. 2016, www.forbes.com/sites/brandonturner/2016/10/04/should-you-sell-your-house-or-rent-it-out/#126a839c5a2b.