Empty Home 101: Is Selling or Renting Better?
Sometimes, changes can occur in our lives, and we might find ourselves in a dilemma. For instance, you might be forced to relocate to another place because of a job opportunity or marriage.
In such a case, you’re left wondering what to do with your old house. Which is the better option between selling or renting out your home?
Do you have an empty home that you aren’t sure what to do with? Not sure if selling or renting is better? Click here for a quick guide to help you decide.
1. What’s the Condition of Your Home?
Before you settle on selling or renting out your home, look at the current condition. How much will renovations cost you? Is it worth it?
For rental property, repairs won’t cost you much because the tenant lives there temporarily. On the other hand, selling your home might cost you a significant amount in renovations.
Home buyers want a spot on a piece of property that meets every criterion of their demands.
Sit down and weigh which option best complements your plan.
2. How’s the Market?
There are areas where housing markets remain stagnant, while others are guaranteed to grow stronger in the future.
Where is your house located? This may influence the selling price of your house depending on the real estate growth in that particular area.
If it’s a low or stagnant growth area, selling your home will be the best option. At Fit Acquisitions, we buy houses with cash.
3. Can You Handle the Challenges of Being a Landlord?
Becoming a landlord comes with its benefits and challenges. If you’re lucky to have cooperative tenants, you will enjoy maximum benefits.
However, what do you do when a tenant fails to pay rent? Do you have the courage to kick them out of your property?
If you can handle the challenges of being a landlord, go ahead and rent out your old home.
Alternatively, you can get a property manager who will be in charge of the tenants and will directly handle them.
4. How Long Will You Be Away?
If you’re relocating because of a job opportunity, consider the duration that the job will last.
If it’s something else like marriage or you’re permanently relocating to another country, the best thing to do is to sell your home.
5. Return on Investment
Return on investment is a significant factor when deciding whether to sell or rent your home.
Look at the amount of profit you’ll make when you sell vs. renting.
When you rent out the property, there are taxes that you must pay to the government.
In other instances, selling your house might save you from paying taxes and making a loss.
So, Which Is the Better Option? Selling or Renting Your Home
Selling or renting your home is a hard decision to make. Look at the influencing factors before you make your final decision.
If you settle on selling your house, you can consider some remodeling and renovation tips.
Check out our blog posts to learn more about remodeling tips for your home.