The question that thousands of homeowners face every single year, should I rent or should I sell!? By the time you are finished reviewing the information on this page you will have a solid idea of what you should do. Of course there is no clear cut yes or no answer, so having all of the facts and information will help you make the best decision possible for you and your family.
We are going to be discussing a few key factors that will have an influence and impact on your decision. Remember knowledge is power and in order to make the correct decision we are going to provide you with that knowledge.
CAN YOU HANDLE BEING A LANDLORD?
For most people the answer is no. They either hire a professional management company like IIPM or just get intimidated by the idea of dealing with tenants. This leads to selling the house even if it would make more financial sense to rent it out. As a management company we handle everything from rent collections to 24/7 maintenance calls for just a small monthly fee.
Property Management is the cornerstone of our business here at IIPM. We are here to be your one stop shop for everything real estate. Being a landlord and dealing with tenants can often times get crazy and be a huge headache. Dealing with rent collections, maintenance, evictions and so much more gets pretty overwhelming. Which is why we have a full time staff to handle all of these issues for you! Read more here.
WILL THIS PROPERTY PRODUCE POSITIVE CASH FLOW?
This is EXTREMELY important. In order to predict this, take the average rent in your area, multiply it by 12 to get your potential gross rental income. Then add up all your expenses including mortgage, taxes, insurance, maintenance, property management fees etc. in order to get your total expenses. If your gross income minus expenses are in the green and a positive number that is a good indicator that you may want to rent out your house instead of selling it.
Think about it, this property would literally be just sitting there paying you every single month. And with a property management company you literally would not have to do anything but sit back and collect your monthly checks.
IS THE AREA UP AND COMING OR DECLINING?
How is the area where the house is located? Are things being built around it? Where do you see this area in 5,10,15 years? This is something you must think about and conduct extensive research on. Look into job growth, local employers and if the nearby main city is moving towards you or away from you.
If you see that things are not looking great in the future and are already seeing some decline in your neighborhood than it is most likely the perfect time to sell and get out before the property loses too much of its value.
SOMETHING TO THINK ABOUT...
At the end of the day this is different for everyone dependent on the amount of equity they have in the house, how much profit they could make and their personal goals. For many people selling is the best option and for others, renting is the best option. So, before making this monumental decision we highly recommend you do your research to find out as much information as possible and align that with your end goals to figure out what the best move is for you.
If you have any questions at all about rental rates, management or anything like that we are always here to help.