Sometimes, you decide exactly when you’d like to relocate. In other cases, 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 hang on to it as a rental property? Here are 5 important considerations.
Big Question: Sell Your House Or Lease It Out?
1. Are you gone for good?
Or are you needing an exit strategy? If there’s a high probability you’ll return to your current home in a year or two, the money and time you spend selling your home and then buying a new one could make renting it out a better option.
2. How’s the rental market?
Check out online rental sites to see what properties where you live and in similar condition to yours are renting for. Are there a lot of listings? Consider what you may charge and what you might have to do to bring your property up to the market standard. You can then have an idea whether your potential rental income will take care of your expenses.
3. Where’s the neighborhood 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 could pay to hold onto it.
4. How much is the hassle of becoming a landlord worth?
Unless you pay for a property management company (about 10 percent of the rental income), coping with issues, emergencies and uncooperative renters (sometimes all at once, often in the middle of the night) can be trying. Ask yourself if it’s worth the stress.
5. Exactly what are the tax implications?
Each situation is unique, so prior to deciding to rent out your home consider speaking with a tax professional. They can help you determine how much you will probably pay in taxes on the rental income.
If you’re prepared to sell, Nick & Cindy Davis are prepared to help. We are always just a click here or call to 813-300-7116 away.
Interested in finding out the value of your home?
We will complete a complimentary Comparable Market Analysis for you.
