Shawn DeLaat
Deciding whether to sell or rent out your property can be challenging and sometimes frustrating. There are pros and cons to renting and selling, and the decision is usually financial.
Homeowners should always take their time with this decision. Choosing between the two scenarios mean considering both markets. If you’re struggling to decide, keep reading for some more tips on what else you should consider when deciding to sell or rent.
Making Your Decision
The decision between renting and selling a home is always a personal one. Most of the time, it will come down to the numbers.
You need to ask yourself what your goals are and which options will help you reach them. You should also consider what you would do with selling profits versus the monthly income from renting.
Many factors go into each decision. Below, we’ve summarized a few for selling your home and renting your home.
Selling Your Home
There are many reasons that you may be considering selling a home. These could include good market conditions and not wanting to be a landlord – the reasons will differ from person to person. Below are a few of the signs you should consider selling a home instead of renting it.
It’s A Sellers Market
A seller’s market is when low housing inventory meets a high buyer’s demand, increasing interest in available properties. During these periods, the limited supply of houses means that those on the market will be in high demand.
You can check the market in your local area, look at market reports and listings, and determine whether your property would sell quickly.
You Don’t Want To Be A Landlord
Being a landlord can provide you with extra income, but it does come with lots of added pressure. As a landlord, you are responsible for the maintenance and repairs on your property as well as ensuring it meets regulations, making sure you pay your taxes and making sure you have tenants pay their rent.
If you don’t want to be a landlord, you could opt for a property management company, but they will usually charge between 8 – 12 % of the monthly rental value, decreasing your profits.
Your Home Needs Work To Be Ready To Rent
If your home needs improvements before it is ready to rent out, you may decide that these costs are too expensive to be worth it. In this case, it may be easier to sell your property to a developer and let them handle the refurbishments.
Your House Requires Excessive Maintenance
Usually, a problem for an older property, high maintenance costs should always be considered when deciding between selling or renting a home.
Remember that you would be required to keep up with the maintenance work on your property as a landlord. If your home needs lots of maintenance, it can become too costly to be worth it for some.
You Couldn’t Charge Enough For Rent In Relation To Your Property’s Value
As homes increase in price, they become less profitable as rental properties. This is because the return of rent tends to go down.
If your home has a high property value, the amount you could rent it for may not be worth it in the long run.
Renting Your Home
Renting a home can take a lot of work, but it is the right decision for some people. There are a few signs that you should consider renting your home, including high demand for rental properties in your area, a desire to rent, and sure profitability.
High Demand For Rental Properties In Your Area
Many things can spike demand for rental properties, including job growth, new developments, and access to higher education. Take a look at local apartment listings or speak with an experienced REALTOR® to determine what demand is like for rental properties in your region.
You Want To Rent Out A Property
It may seem obvious, but if you have always wanted to rent out a property, this may be your chance to do it. As we’ve said, being a landlord isn’t for everyone, but some people find renting out and managing properties to be fulfilling work.
You’re Confident You’ll Make A Profit
For most people, renting a home out comes down to the numbers. If you’re confident that you’ll continue to make your mortgage payments and save some money too, then renting your property may be a good choice for you.
Your Property Has Appealing Amenities You Can Offer To A Renter
Just because you’ve outgrown your property doesn’t mean it couldn’t be someone else’s dream home. Amenities that appeal to renters include ample parking, outdoor space, walkability, views, and the right amount of bedrooms for their needs.
If you think your home could be appealing to others, you may be in an excellent position to rent it out.
You Have An Emotional Attachment To The Property
You may not be moving by choice. Perhaps, you’ve been relocated for work or family demands, but you want to hold onto your home and come back to it when you can. Renting is the perfect way to keep your property and make a profit on the side.
What Are My Next Steps As A Homeowner?
All circumstances are different, so it is vital to take the time to consider which option is best for you. Crunch the numbers and think about both processes before making a final decision.
Looking To Buy Or Sell A Home In The Niagara Region? Call Davids & DeLaat!
Whatever decision you make, Davids & DeLaat can help. As a team of experienced and dedicated REALTORS® with impressive knowledge of Niagara real estate, we will be here for you every step of the way. Contact us today to see how we can help you!
