Answering the Big Question: Should I Rent My Home or Sell It?
If you have multiple properties or perhaps are moving and wondering what to do with your old home, you may be debating whether your want to sell or rent. The current market is great for selling. However, renting the property out is also a viable option, especially with the help of an Arizona property management company. So, which is the best course of action? Here is a breakdown of the benefits and drawbacks of selling and renting, as well as a simple way to make renting easier.
Reasons to Sell Your Property
There are several reasons why you may choose to sell your property. Before you decide, you will definitely want to take a look at the current economic climate and the housing market.
Good Return: The current market is great for selling, and you are likely going to get a great return on your investment. Waiting to sell means that you may have to sell for less, which is not ideal. Selling especially makes sense if you are in a financial situation where you would need the money made from the sale.
Selling Saves Time: Managing and renting a property is difficult and time-consuming, especially if you are trying to do it alone. Selling gives you a swift, easy way to get a return on the property without the hassle of trying to rent. While selling does take time and effort, it is much less intensive than renting.
A Clean Break: After you’ve sold the property, you’re no longer responsible for that property and its upkeep. Selling is also a great option if you are planning a move away and will not be able to tend to the property (unless of course, you hire a an Arizona property management company to take over the legwork while you reap the benefits!)
The downside of Selling: Selling means that you will not be making money from that property in the future. Sure, you will get a good check out of the sale, but then you will need to find another way to put that money to work.
Reasons to Rent the Property
While there are good reasons to sell a property, there are also great benefits to renting your property instead of selling:
Renting Puts Your Property to Work: When you rent out your property, you have the potential to earn a large amount of extra income. While a portion of the rent is going to go towards covering utilities, taxes, and other expenses, pricing your rent correctly can help ensure that you are also making money in the long run.
Renting Builds Your Investment Portfolio: Owning a rental property a good investment because, while the housing market may fluctuate, the property will always be in-demand. Having multiple properties offers a safety net to ensure that you are protected in cases of financial hardship.
Having a property is also a great way to give yourself an extra means of insurance in case of economic downturns or times of inflation. Plus, the value of the property may increase in the future which means that you’ll be able to rent, or even sell, at a higher price point.
The downside of Renting: The downside of renting out your property is the fact that you will essentially have to become a landlord. When renting, property owners are often responsible for things like finding tenants, drawing up contracts, and even dealing with maintenance issues.
When renting, you also need to familiarize yourself with the local neighborhood and perform a market analysis to correctly price your rental property. Pricing the property too low means that you lose money that you would otherwise be making. On the other hand, if the price is too high, you may have trouble finding renters.
Get the Best of Both By Hiring an Arizona Property Management Company
Hiring a great Arizona property management company to handle your property can be a great way to rent out your property without the hassle of having to juggle the duties of a landlord. A property management company will be able to help you secure tenants, price your property in accordance with the market, and will even help you with the paperwork. In many cases, a property management company will also collect rent and deal with maintenance issues.
Likewise, a good property manager will be able to care for the property without your presence, which means that you can move to your new home without having to constantly go back to your old property.
If you are looking to sell simply because you don’t have time to manage a property, or because you want to move, hiring a property management company gives you the flexibility to rent and the extra cash flow without having to put in the extra work.
If you are debating between selling and renting, we can help. Call us today for a free consultation and we will tell you how much you’ll be able to make renting out your home in the current housing climate.