Deciding whether to sell or rent out your home can be a difficult decision. Ultimately, it will depend on your financial situation and your future plans. It also depends heavily on both the sales market and the rental market.
If you’re moving out of town for work, military orders, family responsibilities, or something else – consider the following pros and cons to each potential solution.
Renting vs. Selling: Your Finances
Your choices really depend on the equity you have in your home and the amount of money you’re hoping to earn on its sale. If the sales market isn’t strong enough to support the sales price you wish to attach to your home, it might be better to rent. You can wait out a slower market and allow the home to grow in value while a tenant helps you pay down your mortgage. However, if you need the cash for something else such as college tuition, the down payment on a new home, or something equally expensive, selling the property might be better so you have immediate access to that equity. Renting out a home doesn’t bring immediate financial rewards. The gains are more long-term.
Renting vs. Selling: Your Los Angeles Plans
Are you planning to return to Los Angeles? Do you or a parent plan to retire in the next five to 10 years, or do you have a student who might want to live in the property one day in the not-too-distant future? If you think you can use the home again, selling it will feel extremely final. When you hope to return to the area and you’d like to have a place to live, keeping the property is probably your best option. With good tenants in place and a watchful property management company, you can ensure the home is protected and maintained until you return.
Renting vs. Selling: Your Investment Plans
If you’ve always wanted to invest in real estate, but you haven’t had the opportunity to buy a rental property, you are in an excellent position to begin enjoying all the benefits that come with real estate investing. You will earn a consistent rental income, allow your property to appreciate in value, and enjoy a number of tax benefits and write-offs. When you want real estate investments to be part of your overall investment portfolio, you should keep your home and rent it out.
Working with a Los Angeles Property Manager
Out-of-state owners need to find a trusted and reliable property management company. It’s critical to have a local expert keeping an eye on your home and enforcing your lease with outstanding tenants. When you partner with a professional property management company, you will have reliable expert marketing your home when it’s vacant, screening your tenants, collecting rent, taking care of maintenance, and conducting inspections. Look for a management company with the technology and the communication structure to keep you informed and to remain responsive and accessible at all times.
If you’d like to hear about what we can do for your Los Angeles rental property, please contact us at Bell Properties, Inc. We’d love to tell you more about how we can help you rent out a property.