If you’ve recently landed your dream job in a new city, you’re probably wondering what to do with your house. The question of whether to sell or rent out your property is something that most homeowners deal with when faced with a sudden move. Especially after the recent sellers’ market in the real estate industry, homeowners received enticing cash offers frequently throughout the past few years. Many homeowners went for it and accepted cash offers higher than they’ve ever seen. Their ultimate plan is to rent for a few years, and then buy back into the market when values drop. If you have thought that I need to sell my house for cash, browse around here to learn more about the process. Selling your house for cash and renting for several years may not be a bad idea for your situation.
In this article, we’ll explore 3 different reasons why it’s sometimes wiser to find a tenant rather than cut-and-running from your home.
1. Selling a House Takes Time You May Not Have
If you’re expected to move on short notice, you may not have enough time to prepare, list, and sell your house fast. After all, it can take anywhere from a few months to an entire year to stage, market, and then close on a sale. Even if you work with a realtor, it can take quite a lot of time and effort to find a buyer.
This presents a major problem for home sellers who have to leave as soon as possible.
In some cases, it may make more sense to simply rent out the property until you have more time to sell it. Renters are generally less picky than buyers, meaning you won’t have to make extensive renovations, and you won’t have to go through a closing period. If your property is located in a major city, your renters can explore what the area has to offer and stay busy while they get accustomed to their new home. Having a strong appeal for your property’s location makes it easier to rent out.
2. Renting Out Your Property Can Generate Income
Depending on how much you originally purchased your property for, renting it out to a tenant could prove to be profitable. In some cases, the rental income you earn could even cover your mortgage payments. This would allow you to keep your property without having to worry about making monthly mortgage payments.
Of course, there are a few things you’ll need to account for before deciding that renting is the right financial decision:
- The cost of maintenance and repairs—As a landlord, you’ll be responsible for maintaining the property and making any repairs after your tenants move out. If you’re not careful, this can become quite expensive, especially if your tenants are messy, have young children, or don’t respect your property.
- The possibility of a vacancy – If your tenants choose to move out at an inopportune time, your property could sit empty for several months until the market picks up. This could cost you in the long run because you’d lose your source of income and have to start paying your mortgage out of pocket.
- Difficulties selling – If you someday decide that it’s wiser to sell your property rather than rent it out, you’ll have to around with your tenants. In most cases, you cannot simply evict them to sell the property. In this case, you may take a loss or end up waiting months for their contract to end.
These risks are mostly dependent on the housing market, though. Right now, there is a major shortage of available houses, meaning that rentals quickly come off the market. In other words, you shouldn’t have any reason to worry about vacancies or financial loss. However, it is always wise to consider the risks and have finances put aside to cover all eventualities if possible, so as to avoid debt mounting and the difficulties that come with that. You can learn more here about some possible debt solutions should the worst happen.
3. Can’t Get The Price You Want
Even if you’re not in a hurry to sell, there’s no guarantee that you’ll sell your home for the price you want. There’s a lot of market variability at the moment that has homeowners concerned that their housing values could drop in the coming months. If you’re unable to sell immediately, there’s a chance that you’ll miss the opportunity and have to take a loss.
Choosing to Rent Instead of Selling
The decision of whether to sell or rent your home depends on your unique circumstances. If you need to move quickly, don’t have the time to prepare your home for sale, or are worried about the market, it might be best to rent your property to a tenant. Speaking with a professional can help you make the right choice and smooth the rental process if you take that route.
