Sometimes, you opt for exactly when you’d like to relocate. Other times, life swoops in and decides for you. Your business might transfer you, a family emergency might require relocation, or you might finally find the love of your life-three states over. Should you sell your house or hold on to it as a rental property? Listed here are 5 important considerations.
Big Question: Sell Your House Or Lease It Out?
1. Are you gone for good?
Or do you need an exit strategy? If there’s a high probability you’ll return to your current home in a year or two, the funds and time you spend selling your home and then purchasing a new one could make renting it out a smarter option.
2. How’s the rental market?
Check out online rental sites to find out what properties where you live and in similar condition to yours are renting for. Is there a lot of listings? Think about what you might charge and what you might have to do to bring your house up to the market standard. You can then get an idea whether your potential rental income will cover your expenses.
3. Where’s the area heading?
A lot of factors feed into property values, from national trends to long-term construction plans. A REALTOR can help you understand your property’s possibility of appreciation and whether or not it might pay to hold onto it.
4. How much is the hassle of being a landlord worth?
Unless you pay for a property management company (about 10 % of the rental income), coping with issues, emergencies and uncooperative renters (sometimes all at once, often in the midst of the evening) can be trying. Consider if it’s worth the stress.
5. Exactly what are the tax implications?
Each scenario is unique, so before you decide to rent out your home consider speaking with a tax professional. They are able to assist you to figure out how much you can expect to pay in taxes on the rental income.
When you are prepared to sell, Nick & Cindy Davis are prepared to help. We are always just a click here or call to 813-300-7116 away.
