If you’re ready to move to a new home, you have several options. Most people immediately think about selling their current house. However, you also have the option of renting it out to tenants.
There are pros and cons to selling a house vs renting. Alternatively, you could be forced into a choice based on your circumstances.
If you need to get approved for a new mortgage, you might not be able to do so unless you sell your current home. Conversely, if the market is poor, renting out the house (even temporarily), could help you avoid losing money on the sale.
Keep reading as we dive further into the topic of renting vs selling.
Selling the House
If you sell the house, you have the potential to make a large, one-time profit. This can help you come up with the funds for a downpayment. As noted earlier, it might also be necessary for you to get approved for a new mortgage.
Here are some other things to consider.
When selling a house vs renting it out to tenants, you have fewer obligations. You won’t have to worry about keeping your tenants happy. This means no repairs and maintenance responsibilities.
You also won’t have to worry about the financial impact of having a rental unit with no renters. If you still owe money on the house, this can be a difficult burden to bear.
Fortunately, when selling a house vs renting, you have multiple options. Even if you’re under a tight timeline, you can sell your house quickly, without making repairs and renovations. Although, if the house was furnished, you may need to get the furniture and any contents you own moved out and placed elsewhere by a removal company. Specialist removals Sevenoaks companies have information on these services.
If you need to sell your house sooner rather than later, look here now to learn how to make it happen.
Alternatively, if you have the time, you can sell the house traditionally to try to make more money. But this option is not guaranteed.
Renting Out the House
Next, let’s look at the benefits of renting vs selling a house. Though this means hanging onto the property and maintaining the associated responsibilities, this option can be appealing to some homeowners.
Lets’ look closer at renting a house.
One of the biggest perks of renting vs selling a house is that it opens the door to a potential income string. More importantly, it will be a passive income string (aside from your landlord duties).
If you hold onto the house and it is eventually paid off, you can expand your real estate investing to include other residential homes. This is not a bad way to build wealth. It is actually a very good investment and you can use a website like Rentberry to screen out tenants and only accept responsible ones.
Landlord Duties and Legalities
However, when renting a house vs selling, we also need to consider what that means in terms of your landlord duties. You are legally responsible for providing a safe and secure home for your tenants. This often means taking care of repairs and maintenance issues.
We recommend working with an attorney to understand your rights and responsibilities, as well as those of your tenants.
Deciding Between Selling a House vs Renting?
Are you having a hard time choosing between selling a house vs renting? If so, we hope our article provided you with some valuable insight.
But if you’re looking for more real estate advice, we have more to offer. Check out some of our other articles to find more information on renting homes, selling homes, and more. Our blog was created to help readers like you.