Looking to sell your home? Or have you ever considered being a landlord? If you’re looking to move out of your current home, both options can be great! We talked with Jace to hear the pros and cons of selling vs renting out in today’s market. Still not sure which is right for you? Send us a message at team@twincitieselite.com and we’d be happy to help!
Hi guys, Jace with the Twin Cities Elite Real Estate Group here today. Wanted to talk to you a little bit about selling versus renting out your home. I know in today’s market, that’s a big question for people, especially if they have equity in their property.
PROS TO SELLING
Some of the pros to selling your property right now, as opposed to renting it are home values are bringing a premium right now with the low inventory that we’re currently experiencing. There are a lot of multiple offers scenarios – it does give the sellers an opportunity to essentially cash out that money and potentially pay off some debt or go apply that money to a new house.
PROS TO RENTING
Those are some of the appeals that sellers are looking at, but on the flip side, when looking at renting it’s another good option. If you feel comfortable with it, some of the pros to renting are if you own the property and you have a renter in that home that you own, essentially somebody else is paying your mortgage every month while you still continue to own that property. So the real estate market is typically, over the course of the years, is going to be appreciating, so over the course of that 5-10 years, somebody else’s paying down your mortgage and you still own the property which is a nice benefit.
CONS TO RENTING
Some of the cons that I tend to hear from people in regards to renting are, sometimes it can be a little bit more hands-on, obviously you’re still, as the land owner, responsible for the property. So, you know, if a furnace goes out or a water heater or something like that goes out, you’re essentially on the hook for those type of things. Now there’s things that you can do in place of that. You know, there are home warranties or things of that nature to help cover yourself. But sometimes people don’t necessarily like to deal with some of those things outside of their own subject properties. So, that’s just one thing to consider.
And the second thing is finding good renters as well. Obviously, you’ve worked hard to get that property. You want to make sure it’s taken care of. Sometimes things come up, you know, right now is a great example of the pandemic that we’re dealing with. A lot of times people are having trouble paying rent rate and so what happens in that scenario – you could potentially be on the hook for your first home and potentially your rental properties. So certainly some things to consider when selling versus renting.
CONS TO SELLING
Once you sign on the dotted line the house is no longer yours, you can’t go back. Where as when renting you still own that property, you can go back and make changes, sell it later when the market prices are even higher, or move back into it someday, pass it on to your family in the future. Of course you still get the money from selling so the value isn’t gone, just the specific property.
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It’s kind of a situational thing for what your appetite is and what your future holds for you and your family. But ultimately I just wanted to share a few pros and cons to both sides. Other than that hope everybody had a great Thanksgiving and please feel free to reach out if there’s ever anything that we can do for you!
Guiding you home,
