RENT OR SELL? WHAT SHOULD YOU DO WITH YOUR OLD HOUSE…?

So you have decided to move. May be you are moving from a smaller house to a bigger house or downsizing… Whatever the case may be; when you move there is a big question that arises… What should you do with your old house? Should you rent it or sell it?

We will jot down certain important points for you to help you in deciding whether to sell it or rent it.

·         Goals: Having someone live in your home means you are prepared for the walls to be scuffed, the countertops to be burnt, and your prized lawn to dry up. Renting it out also means you are responsible for the upkeep of the property. If you cannot deal with all that, selling could be a better choice for you.

Or if you’re not satisfied with your current home value, renting out the house can provide some income while you wait for your home value to rise. If homes are appreciating rapidly in your area, it may be smart to wait.

·         The sole way usually homeowners can come up with a down payment for their next home is to cash out the equity they’ve put into the one that they already own. Can your family save up enough to put down 20% on your next home without selling your existing one? Consider this fact carefully before you decide to rent.

·         If you are just going to be away for a couple of years or so and you intend to come back to the area, perhaps it would be more logical to rent out your house and move back in when you get back instead of selling it and then purchasing another one just two or three years later.

·         Your home’s location is Key, since this is what will attract buyers or renters, depending on what you decide, and how much people will pay for your home. Homes in areas with good schools, shopping and other amenities will likely attract strong tenants who will pay enough to cover your costs. Research your market and how fast homes sell -- if you can break even or make a profit, you may want to sell. 

·         Being a landlord can be time-consuming and emotionally draining. You’re responsible for advertising, showing the home, and running background checks to get the home rented. You have to field calls from tenants, handle maintenance and repairs, and deal with any emergencies that come up. Although you can hire a property management firm to do this for you, expect it to charge at least 10% of your rental revenue. Hence if you prefer not to take this stress and go through the entire process you might want to sell your home and settle to take the stress once than taking it every month.