SHOULD YOU SELL Or Rent Your Property?

Once homeowners decide they need to relocate, the next major step is deciding between selling or renting their home. Of course, there are pros and cons to each decision.

Why You Should Consider Selling Your Home

National home values increase, on average, between 3.5 and 3.8% every year, but of course, properties in California have appreciated at a higher rate over the past couple of years. A recent forecast by the National Association of Home Builders projected a 14% increase in 2021 alone. If you’ve been in your house for more than a year or two, chances are you have accrued a good amount of equity. Selling would free up cash that you might need to purchase your next home.

Here are the top reasons why renting your home is a good idea:

It is a sellers’ market

• You have a significant amount of equity

• You don’t want to be a Landlord

• You don’t want to hire a Property Manager and aren’t knowledgeable on applicable laws

• You can’t charge a high enough rent to offset your house-related expenses

• The neighborhood is not enticing for renters

• The house would not make a good rental

• The home needs a significant amount of work before it will be rental ready

• You anticipate excessive maintenance issues due to the age or condition of the home

• You don’t have adequate cash on hand to cover vacancies and maintenance 

Why You Should Consider Renting Your Home

Renting your home could provide monthly cash flow. By keeping the house, you can build equity as you use rental income to pay down the mortgage and market values increase. To make a profit, you will need to find and keep good tenants and minimize vacancies. Tenants tend to look for the same amenities buyers look for, including neighborhoods with low crime, good schools, convenient shopping and other neighborhood amenities. 

Here are the most common reasons why renting your home is a good idea:

Rentals are in high demand locally

• You want to be a Landlord or you’re on board with hiring a Property Manager

• The house offers appealing amenities that renters seek

• You are confident that you can make a profit

• You owe more than you can make by selling

• The local home-buying market is weak

• You have a personal attachment to the house