When it’s time to move, deciding what to do with your current home is a major decision. Many homeowners are increasingly considering renting out their property instead of selling it. In fact, recent Zillow data shows that nearly 66% of sellers thought about renting before listing, and nearly a third (28%) seriously considered it. With this trend on the rise, how do you know if renting or selling is right for you?
Is Your Home a Good Fit for Renting?
First, ask yourself if your home would make a good rental property. If you’re moving far away, managing the property from a distance can be a hassle. You also need to consider if your neighborhood is rental-friendly and if your home needs major repairs. If maintenance would be too overwhelming or your neighborhood isn’t ideal for renters, selling might be the better choice.
Are You Ready for the Realities of Being a Landlord?
Renting out your property is more than just collecting monthly rent. It comes with its own set of responsibilities. Think maintenance calls at all hours, potential repairs, and the risk of tenants missing payments or breaking leases. Being a landlord means handling everything from broken pipes to structural repairs—unexpected costs can add up quickly. Are you prepared for the commitment?
Understand the Costs
Renting your home can seem like a way to earn passive income, but don’t forget about the additional costs involved. You’ll still be responsible for your mortgage, property taxes, and insurance—landlord insurance typically costs about 25% more than regular home insurance. Maintenance, finding tenants, and potential vacancies also come with their own expenses. And if you choose to hire a property manager, expect to pay them 10% of the rent.
The Bottom Line: Selling vs. Renting
Deciding whether to sell or rent your home is a personal decision that depends on your financial and lifestyle goals. Selling can provide cash for your next home, while renting out the property can help build long-term wealth—but it comes with added responsibilities and costs.
If you’re unsure, it’s always a good idea to consult with a real estate agent. They can help you weigh the pros and cons and make the best decision for your situation. Whether you sell or rent, make sure you’re fully informed before taking the next step!
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