It’s a question homeowners need to answer before putting a home on the market. Should you sell the property or rent it out to qualified tenants? There are advantages and downsides to each option. The answer comes down to what works best for you.
Selling a Home vs Renting It Out
Selling your home puts cash in your pocket, it also relieves you of any obligations to the property. If you’re moving out of state, you may not want to deal with the problems that come up with a rental property.
As the owner of a rental home, you are responsible for the upkeep and general maintenance.
You still are paying property taxes, along with any applicable HOA fees. You also have to find reliable tenants with good credit histories.
You also want to think about the complicated and costly eviction process. Hopefully, you won’t find yourself in this situation, but it does happen. Are you ready to spend the time and money it takes to have a delinquent tenant legally removed? Some laws favor the tenant over the property owner.
Benefits of Putting a Home on the Rental Market
It may seem easier selling your home, but you’re missing out on revenue. Rental properties can be lucrative investments. It does require proper management from yourself or an outside company, but you also have a reliable monthly income stream.
Another reason to consider putting your home up for rent is the property’s sentimental value. It may be a family home filled with memories or have unique architectural features that you’re not ready to give up. You may also plan on moving back to the area at a later date. Renting out your house ensures you still have a home when you come back.
Getting Your Home Ready to Rent
The number of rental properties is up in most U.S. cities, even though 2021 is still considered a seller’s market.
Rental listings in some cities can bring over $2,000 a month in added income, while others are much higher. Getting top dollar from tenants depends on the neighborhood and the home’s amenities. Even if the property isn’t in a desirable area, you can still maximize its rent potential with a few upgrades.
Have your lawn landscaped with hardy shrubs and flowering plants. Give the trim a fresh coat of paint, and power wash patios and sidewalks.
The interior walls may also need painting, and don’t forget to take a look at the fixtures. Update old lights and faucets. You don’t need to spend a lot of money, but these changes will give the home a fresh, new look.
Home entertainment rooms are at the top of the list for many prospective renters. You don’t have to leave your laser projector behind but having a dedicated space for home movie night increases the property’s rent potential. Inground pools also entice tenants, though make sure it is properly fenced in. You don’t want the pool to become a liability.
Renting out their property isn’t for everyone. There is a lot of work involved, even if you use a rental management company. It does guarantee a monthly income stream, and you still own the property.
If you don’t want to worry about your old home, it is a seller’s market.
Need direction? Don't know where to turn, have questions, call us at 443.386.1306 to discuss your options! Or visit Our Selling Page for more info.