Deciding Whether to Rent or Sell Your House

When it’s time to move, deciding whether to sell your house or rent it out is a significant choice. Should you cash in for your next chapter, or hold onto the property for potential future gains?

Many homeowners grapple with this decision, and finding the right answer involves weighing various factors, including potential rental income and the duties of a landlord.

Here are some important considerations to help guide your decision:

Is Your Home Suitable for Renting?

Not every home is cut out for the rental market. Factors such as location, the condition of the property, and the distance you’ll be moving can impact the practicality of renting it out. If managing the property from afar seems daunting, or if the home requires substantial repairs to be rental-ready, selling might be the preferable route.

Are You Prepared for Landlord Duties?

Being a landlord involves more than just receiving rent payments. It can be demanding and sometimes problematic. You might receive maintenance calls at inconvenient times or deal with tenant issues ranging from property damage to unpaid rent. Investopedia notes:

“Many landlords encounter more problems than benefits. Speaking with experienced landlords and conducting a thorough cost-benefit analysis can reveal if selling might be a simpler and less stressful option.”

Do You Understand the Financial Commitments?

Renting out your home isn’t just about the extra income; it’s also about the costs involved. Bankrate points out several expenses to consider:

• Mortgage and Property Taxes: These costs continue regardless of rental income.
• Insurance: Expect to pay about 25% more for landlord insurance than regular home insurance.
• Maintenance and Repairs: Budget at least 1% of the property’s value each year for upkeep.
• Tenant Acquisition: Costs here include advertising and background checks.
• Vacancies: Unoccupied periods mean lost income.
• Management and HOA Fees: Hiring a property manager can help, but expect to pay around 10% of the rental income; HOA fees might also apply.

Bottom Line

Ultimately, the choice to sell or rent out your home hinges on your personal circumstances. Carefully weighing the benefits and drawbacks and consulting with real estate professionals can provide clarity and confidence in your decision. We’re here to help you explore all your options and choose the path that best suits your future plans.

Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com

3007 W Horizon Ridge Pkwy, Ste. 210, Henderson, NV 89052