As the real estate market continues to shift, it’s not easy to decide whether to sell or rent your home.
While selling your home to have money for your next purchase or investment can make sense, renting allows you to potentially build a long-term source of income and keep your property.
So what are your options and potential benefits when deciding to rent or sell? The following are some top considerations that can help you make the right decision.
Renting: If Your Property Is in a High-Demand Location
Rental demand has been surging in the last few years. If your property is located in an area where the demand for rentals is high, it may be worth considering renting out your property, as you can generally net a higher rental price, and popular areas tend to stay popular. Renting may also be a good idea if your house or apartment is located near a college or university, in a trending area, or in a highly-ranked school district.
Selling: When You Can’t Charge Enough Rent to Cover Your Expenses
Not every property is located in a high-demand area. If your home is located in a place where the average rent is less than what you’d need to cover your expenses—including the mortgage, property taxes, and maintenance—then it may make more sense to sell. Keep in mind that you’ll need to have money on-hand to continue paying these expenses in the event of vacancies, so you can’t depend on rental income alone as a landlord.
Renting: If You Want to Keep Your House
Some people like their house and don’t want to sell. If your home is in a convenient location for you, such as near family or potential work, or you plan on moving back to your home in a few years, you may want to keep your house and consider renting it out. Renting is a practical and potentially profitable option if you’re on the fence about selling. You can always sell later, but you may not be able to buy your house back.
Selling: You Have an Older Home
When you have an older home, renting may not be a profitable venture. Older homes tend to require more maintenance than newer properties, and when you throw renters into the mix, your home may need more TLC than you can afford. Although it’s certainly possible to own an older home and rent it out, it may not be the investment opportunity you’re looking for.
Renting: Your Property Has a Lot to Offer
As the demand for single-family rental homes has skyrocketed, you may be at an advantage if you have a SFH and want to rent it out. This is especially true if your home has the amenities that renters tend to look for, including a home office, outdoor areas, on-site parking, and a location not too far from shops and restaurants. These rental property features are valuable, and renters will pay more for a property with them.
Selling: You’re Not Interested in Being an Investment Property Owner
Not everyone is interested in being an investment property owner, and that’s ok. If you’re not planning on returning to the area and don’t have any interest in maintaining the property or continuing to make decisions about it, then selling may align more with your goals.
Which Decision Is Right for You?
Whether to sell or rent your home all comes down to your goals and whether you want to sell now for a profit or turn your home into an investment over time. Would your Maryland property make a good rental? Find out by contacting FAS Management today at (202) 337-5080.
