Is It Better To Rent Or Sell My House

The normal thing for most homeowners to do when they are leaving is to sell it. However in areas the rent amounts are increasing faster than the house prices, which have remained almost unchained. When we are in a buyers market and you don’t stand to get the same amount out of your home renting the place out instead of selling, might be a better idea.
Considering Renting?
In the areas of the country that the home prices have not gone up in value it might be wise to rent your house out for several years before you sell to allow the property value to increase. There are a lot of real estate investors that they will buy multiple houses, in the same area, with the intention of renting them out for a few years and then selling when the prices have gone up. Plus, depending on your cost, you might even be able to make a profit off of the rent every month that someone is there.
Even if renting the house out does not turn a profit it still may be the best financial option for their situation. If you are moving for any reason and you are not able to sell your home before you leave you might want to rent it out instead of trying to sell it and making two mortgage payments. In a case like this someone might decide to rent it out to offset some of the loss that you would normally incur if you were not able to sell it. When you do it this way you are able to adjust finances to allow them to put their house on the market it they are able to find a home buyer in a better market.
Considerations before Renting
If you are able to afford to have the house on the market for several months then choosing to rent might require a little bit more research. As I said earlier renting is not always profitable so you have to be sure to do your research before you rent in the hopes of making money.
Are You Ready To Be A Landlord?
First of all, even though you may only have one home that you are renting out rather than dozens that a full-time investor may have, you must consider yourself a landlord with all the duties and responsibilities of one.
Consider this: what will you do if your tenants inform you that they cannot pay the rent this month? Unless you unwittingly find tenants that sign the lease agreement without any intention of paying rent, most tenants want to stay solvent and only state they cannot pay when money becomes an issue such as during holidays or the beginning of the school semester. In such cases, do you have a procedure in place to work through the issue? Do you have eviction attorneys in mind if the situation deteriorates? As the landlord, you are also in charge of all repairs. Do you have a list of repairmen on hand in case there is an emergency? For these reasons, many people find it easier to rent their homes using property management firms who do the screening and communication with tenants themselves. However, firms also expect an 8-10% cut of the rent for their work.
Will renting be profitable?
Use the local listings to determine the likely rent price and tally up the expenses of the rental such as taxes, insurance, maintenance costs, and management fees against it. Remember to account for vacancy time, which vary widely so ask a rental broker or firm. Accounting for all these expenses, if you are making a profit of more than a hundred dollars a month, it is a reasonable amount that may be worth your trouble.
If you realize that you hate the idea of being a landlord or the expected profit is too meager, then you may do better by selling your property without renting at all.

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