Life changes. Whether it’s new job opportunities, marriage, or even simply being tired of the old location, relocations are bound to happen. In this case, unless you’re in extreme need of money, it’s better to just sell. But usually, people will have some cash saved up for rainy days. This is why we are going to list the top reasons why you should rent your house instead of selling it.
1. Long-Term Profit
Slow and steady wins the race is not an idiom for the jokes. It retains a high degree of truthfulness in itself. By prioritizing renting your house, you stand to gain more money over time (provided you did your research and are properly tending to the building). You can get an early influx of cash by selling the house, sure, but it doesn’t provide any income later on while renting allows you to have a constant inflow of cash provided you consistently rent it out. Of course, this doesn’t mean that you are guaranteed to strike gold by renting, a lot of factors like demand, the market, and investment funds still go into it.
2. Avoiding Huge Capital Loss in a Down Market
Being forced to sell property while its value is at its lowest is a tragedy. So if you aren’t forced to do so, do not sell out! Watch closely for market price shifting in order to grasp the current situation (this also applies to the price of rent that you are thinking of putting). If you want to sell no matter what, that’s fine, but for your own sake, at least do it at a reasonable timing. Don’t sell because you can’t be bothered to do some research about prices, remember, it’s not a bicycle that you are selling, it’s an entire house. Keep the property for some time, rent it out in order to not just avoid the current bad market situation, but also make money off of it!
3. Can You Handle Tenants?
This one is more of a question than a reason. Being a landlord involves a lot of frustrating work. Movies romanticize the annoying landlord, but they never tell you about the annoying tenant! You can get a normal student who pays her rent on time every month, but you can also get a loud impulsive know-it-all who is always late with payments. Not to mention that this is a job which simply doesn’t have free time. Situations can happen, you need to be prepared for managing all of the smaller aspects of being a landowner. Make sure to advertise your property on social media in order to have a wider range of possible tenants and get a clearer picture of them. When all is said and done, it falls down to you whether you are ready for the adventure and hassle for some new life experience and potential income. Embrace your inner capitalist!
4. Sentimental Attachments
Sometimes you just don’t want to say goodbye to your old childhood home. By renting it out, you don’t have to. It will always be with you, and while you may not be living in it, you will still make sure that it’s in good care. A building that has its own history, specific architecture, uniqueness, or even just a pleasant smell every time you pass by makes it all the harder to sell. By renting it, you ensure that it isn’t going to decay, it will create new memories for some other people, and who knows, maybe after a few years if the prerequisites are right, you might even be able to move back in (and have earned some money along the way).
5. Demand
This one is tricky. You need to have substantial economic education and experience in order to know how well your house will do. Booming job growth in the city, low crime rates, the attractiveness of the neighborhood all play roles in it. If rental demand is low, and vacancy rates are high, it looks grim from a financial and security perspective. Ideally, you don’t want your house to be vacant for extended periods of time, as it will lead to larger chances of theft, decay, and vandalism. For this one, it’s best to hire a professional in order to get an expert opinion on the matter to reach maximum efficiency. Strata Management Northern Beaches have a diverse team for quality strata management.
Some Things to Keep in Mind When Deciding:
• In the current climate according to a survey, about 66% of investors, landlords, and property managers are optimistic about the state of the rental market in the following year.
• Landlord and tenant laws should be thoroughly read up in order to make sure you know what you are getting yourself into. So that there won’t be any hidden laws that will make you lose out on a lot of potential income and even make you go into the red every month. As a landlord, you’re in charge of any maintenance so educate yourself on the local laws, regulations, and taxes to avoid any possible lawsuits as well.
A final consideration is that you should think about it for yourself as well. Does it seem alright for you to sell your house or rent it? Trust in your instincts.
About the Guest Author:
Gabriel Hill is an Australian blogger interested in several spheres from home improvement and management to environment and law.
