To rent or sell your home? That is the question! The answer depends on how the market is doing, how much work you want to put into your home upfront versus over time, whether you have enough equity in your home or if you are under on your mortgage, among other things. Jacksonville Property Managers will be exploring both reasons to sell, as well as reasons to rent, below, in hopes of helping you decide whether renting or selling is the right answer for you.
Jacksonville Property Managers Discuss Reasons to Sell Your Home
- The market is great and you stand to make a good return. When it is a seller's market, it means there simply aren't enough homes on the market to keep up with the demand from buyers. Putting up that "for sale" sign can often lead to a bidding war when buyers still outnumber inventory, which makes you the winner! Take note that listing your house earlier rather than later in the year often leads to higher sale prices.
- You don’t want to turn the property into a moneymaker. If you aren't interested in the "hassle" of being a landlord and are in a place where the extra revenue stream from renting wouldn't make a huge difference to you, it may be easier to sell your home. Being a landlord can certainly come with its share of hassles, and it's not for everyone (though one way around this hassle is to hire a property management company, like Jacksonville Property Management, to deal with day-to-day operations).
- You want to walk away. There is certainly something to be said about the freedom that comes from just selling your home and no longer being tied to it. All of the potential issues that can come from renting your home out are avoided by just selling it instead. That being said, selling your home is still stressful, and there will definitely still be work involved. But when it is all over, you get a check for your home and you get to move on. Additionally, if you are relocating to another state, selling can be even more beneficial. It is very hard to understand the emotional burden of having two homes until you have experienced it. Having to deal with rental problems in the middle of the night, especially if you are in another state, is NOT enjoyable!
Jacksonville Property Managers Discuss Reasons to Rent Your Home
- If the market where you are trying to sell takes a turn for the worst and selling your home would result in a loss, you may want to hold on to the property and rent it out until you can actually make a good profit from selling it. The combination of more equity from paying your mortgage down over the rental period time and, hopefully, increased real estate market values can give you the option to sell your home for a bigger gain later (while still giving you the option to keep renting it out if you find that the additional revenue stream is working out well for you!).
- Renting allows you to earn income while waiting for the market to recover. Assuming that you have a long-term outlook, you can keep the unit occupied with tenants who are paying you rent, and the property you are looking to rent is in a neighborhood where home values tend to appreciate over time, you should see very strong returns from renting. When you are renting out your property, you have two sources of wealth creation:
- The money you get from rent payments yielding a net profit each month
- The property's value growth over time
- You want to build an investment portfolio. If you are looking to move to a new house and also have considered beginning a real estate investment portfolio (as a way to work towards financial freedom!), and you can afford to put a 20% down payment on your new home, renting out your first home is a great way to start your investment portfolio!
Deciding between renting and selling your home is not something that should be taken lightly. This is a major life decision and hasty decisions are often made without thoroughly considering the pros and cons of renting versus selling.
Hopefully, the information presented here by Jacksonville Property Managers will help you make the right choice for your current life circumstances. The choice between renting or selling a home often boils down to an individual’s unique situation. If you are considering renting, please contact Jacksonville Property Management for a free consultation if you want to learn how much your home will rent for, as well as learn about the reasons that hiring a property management company may be beneficial for you!