When you're ready to move, a big question arises: should you sell your current home or rent it out for extra income? Many homeowners today are leaning toward renting, but it’s important to weigh the benefits and challenges. Here’s a closer look to help you decide:
1. Is Your Home Rent-Ready?
Consider if your home is truly set up for rental. If you’re moving far away, managing tenant needs remotely might be a challenge. Additionally, homes in certain neighborhoods or those needing significant repairs may not be ideal rental candidates. In these cases, selling could be a smoother option.
2. Are You Ready for Landlord Life?
Being a landlord isn’t just about collecting rent. It involves managing maintenance calls, handling repairs, and dealing with potential tenant issues. If you’re not prepared for this hands-on responsibility, renting might not be right for you.
3. Understand the Financial Commitment
Renting a home involves ongoing expenses beyond your mortgage:
Insurance: Landlord insurance usually costs more than standard homeowners insurance.
Maintenance: Plan to set aside at least 1% of your home’s value for annual upkeep.
Vacancies: Covering costs during vacant periods can be challenging, so consider how these gaps affect your budget.
Bottom Line
Ultimately, the decision to sell or rent out your home depends on your goals, lifestyle, and financial position. Consulting with a real estate expert can help you weigh the pros and cons to make the best decision. If you're ready to explore your options, get in touch!
