Should you sell your primary residence or turn it into a rental property?
Should you rent or sell your home? Whenever I’m asked this question, I always try to understand the client’s motivation for wanting to rent rather than sell the property.
If you have a long-term plan in mind and understand that being a landlord is not easy and won’t make you massive profits, then renting it out might be a good idea. This might be the case if you plan to return to the home in the future or if you’re moving temporarily to another location. Renting can also be a way to diversify your investment portfolio. However, it’s important to be aware of both the pros and cons before making a final decision.
On the other hand, if you need to sell your home to purchase another, renting may not be the best option as your liquidity will be tied up in that property. If you do decide to rent it out, I always recommend working with a professional property manager to handle the day-to-day tasks of being a landlord.
Managing rental properties requires a significant amount of work, and it’s important to be prepared for the responsibilities involved. A property manager can help, but you’ll need to pay them a portion of the rental income each month.
When considering renting your home, it’s important to know your finances and assess whether it makes sense. Can you invest the rental income elsewhere for a higher return? How much involvement will you have in managing the rental property?
“Be aware that property repairs, updates, and replacements will be necessary over time.”
Be aware that property repairs, updates, and replacements will be necessary over time, and these costs should be factored into your decision-making process. Knowing your numbers will give you a clear answer on if renting is the right choice for you.
Many people are unaware of the complexities involved in owning rental property. If you have questions or concerns about whether you should rent or sell, don’t hesitate to call or email me. Every situation is unique, and the decision to rent or sell should be based on your individual circumstances and goals.