When it's time to move, many people decide to sell their home—but is that the best option?
If you've never thought about it before, renting your home is a worthy idea. Unless you can make an immediate profit on the sale of your home, it could be worth it to turn your home into a rental property: that way, you'll make long-term income on your home. There's no "right or wrong" decision when it comes to deciding to sell your home versus renting it; choose what works best for you with the following information about both options.
Is a Sale More Ideal?
If you need quick cash or you don't want to deal with renting your home to strangers, selling might be the best option for you. Before you make that decision, consider your return on investment: without enough equity in the home or a good seller's market, you could lose money on a home sale right away. There's also the risk that your house sits on the market for weeks or months without selling.
Ask yourself a few questions before you decide to put your home up for sale:
- How much do you owe on the house?
- How long have you lived there?
- Have you made improvements or renovations to the home that add value?
- Is the home currently in need of repairs before you can put it up for sale?
- If you sell your home, will you recover what you’ve put into the house?
If it’s critical that you break even or make money on the sale of your home, run the numbers. Compare the cost of repairs or upgrades to the reasonable selling price of your home in today’s market. The numbers will tell you if it's profitable to sell your home now or if you need to consider another option to make sure you don't lose money on your home.
What About Renting out Your Home?
There's no reason to lose money on your home, whether you sell it now or turn it into a rental property. If the market doesn't return what you need with a sale, check the rental market for your area: it could be a better option to turn your home into a rental. Tenants can help you recover any costs you've put into your home: with renters, you can turn your home into a long-term, income-generating investment property.
However, just like with your research into selling your home, do some additional investigation before deciding to turn your Concord area property into a rental. Analyze a few critical details to ensure you can generate a profit from your home:
- How many homes are rentals in your area?
- Is there a demand for more rental homes in the neighborhood?
- What are the estimated expenses for maintenance and insurance?
- How much could you charge for monthly rent?
- How will you manage the property to make sure it's profitable for you?
If the market is favorable for converting your property into a rental, it might be a good idea to consider becoming a landlord.
Are You Ready to Be a Landlord?
While becoming a dedicated landlord is a commitment, it’s also a rewarding investment opportunity. Owning a rental property is an ideal way to earn "passive" income for as long as you decide to keep it an active rental. However, it's not without some challenges and a lot of work! Landlords are responsible for a host of challenges:
- Property maintenance and repairs—including emergencies
- Choosing and screening tenants
- Understanding ever-changing landlord and tenant laws
- Creating air-tight leases
- Collecting rent (including past-due)
- Listing, marketing, and showing your home
- Performing routine inspections
- Evicting a tenant (if necessary)
Don't be intimidated if any of these landlord responsibilities don't sound appealing! Not all rental property owners enjoy being a landlord. However, owning a rental property doesn't mean you have to do any of these tasks alone, or even in person! Find the right property manager to handle the day-to-day upkeep of being a landlord. You can enjoy the benefits of turning your home into a rental property without having to do any of the work, which is precisely how passive income should be!
Becoming an Amazing Landlord Can Be Easy!
If you provide the property, property managers provide the expertise. We're here to help you maximize the investment you've made in your home. You'll never have to screen a tenant, make repairs, or collect the rent—yet, you'll enjoy the income! With all the work you've put into your home over the years, isn't it time to make your home work for you?
All County Heritage Property Management is your local go-to for experienced property management in the Concord area. We do everything from preparing your property for rental, analyzing the market, listing your home at the right price, and even keep it occupied with excellent tenants. Curious about the rental value of your property? Contact us today for a FREE evaluation!