If you’re like many people, you’re on the fence about selling your property or renting it out – and while we can’t answer that question for you, we can help you in either situation. Check out this guide to get a nudge in the right direction.
Selling Your Property or Renting it Out: What’s Best for You?
Selling your property or renting it out are two very different outcomes. If you sell, you no longer have to worry about it, and if you rent it out, you’re put into the role of landlord (even if you hire a Boston property manager to tackle all the tasks for you). If you’re torn between selling and renting it out, here’s are five things to consider:
- How much you can sell it for, and how that relates to what you owe
- How much you can rent it for
- What your expenses will be in either situation
- How much the property will be worth in the long-term versus how much you can earn by renting it out
- What kind of risk you’re willing to assume
Here’s a closer look at each.
#1. How much you can sell it for, and how that relates to what you owe
If your house won’t sell for more than what you currently owe, the best choice may be to hang on to it and find some tenants. However, if you stand to make a profit – especially if property values are dropping in the area – you may be better off selling now.
#2. How much you can rent it for
Figure out – realistically – how much you’re likely going to be able to rent out your house for; you can get a rental price analysis from a property manager, or you can look at similar homes in the area that are currently being rented.
#3. What your expenses will be in either situation
Take some time to figure out how much either path will cost you. If you sell your home, you’ll have to pay an agent’s commission in addition to making repairs and upgrades. If you rent your home, you’ll have to pay a property manager and for repairs and maintenance. Other costs to consider include:
- Your mortgage payment and property taxes
- HOA dues
- Advertising (if you don’t have a property manager to do it for you)
- Background checks (if you don’t have a property manager to do it for you)
- Accounting costs
#4. How much the property will be worth in the long-term versus how much you can earn by renting it out
Real estate tends to appreciate in value, but that’s not always the case. The way the real estate market looks today isn’t necessarily the way it’ll look tomorrow. You should talk to a REALTOR® and a property manager before you make a decision on whether to sell or rent out your home.
#5. What kind of risk you’re willing to assume
Selling a home is less risky than renting one out is; after the contract is signed, the house is no longer yours, so there’s nothing to worry about. However, renting out a home can be risky. You may get tenants who don’t care for the property, or something could happen that impacts its value (such as a disaster). Additionally, the home isn’t getting any younger; repair costs will start popping up and you’ll have to spend cash keeping the property in livable condition.
Do You Need to Talk to a Property Manager?
We’re here to help you every step of the way – all you need to do is sit back and collect your rent payments.
Call us at 617-262-3075 or fill out the form below now to find out how we can take all the stress out of renting out a property in Boston. We’ll take it from here!