A few weeks back we gave you some info on how to decide whether it made more sense for you to Rent or Buy a home. Today we’re going to discuss renting out your home versus selling it. There are many factors to consider before making that decision. Here are just some of the questions you must answer to make an informed decision:
Monetarily, how would renting affect your bottom line?
How does the rental market compare to the sale market in your neighborhood?
How emotionally attached to your home are you?
How permanent is your reason for moving – are you moving out of the area for good or do you want a new/different home?
What condition is your home in, has it been updated?
ALL ABOUT THE MONEY
If you need the proceeds from the sale of your home to purchase another home then obviously renting is definitely not an option. If you can cover the costs of owning your home by the rental income your home will bring, then you might be a candidate for renting your home. Remember: your costs not only include your mortgage and any HOA/Condo fees, but the upkeep and maintenance. If you can make a positive cash flow plus receive the tax benefits, then renting might be an option.
Another financial part of the equation is how your homes market will look 5-10 years from now. Although no one has a crystal ball to know exactly how the Real Estate market is going to react, determining what the market is likely to do will help in your decision. If your homes market is on the rise, then you could possibly benefit from having tenants that pay for the cost of keeping the home, and you’ll also be making money on the equity that’s being built!
WHY ARE YOU MOVING?
The reason for your move also needs to be examined. If you are leaving the area and do not plan on returning, then renting and managing your rental home becomes 
more difficult. If this is the case, but you definitely want to rent, you should consider using the experience of the Property Management Team at the JS Realty Team. Our Property Management Team will make the managing of your home as stress-free as possible. And if you do plan on returning to the area after a couple of years away, then you need to determine if you are going to want to move back into the same home, or find a new one.
ARE YOU ATTACHED TO YOUR HOME?
This is another major factor to consider. How tolerant will you be of strangers living in your home? For example, if having your prized landscaping not kept up to your standards would make you upset, you may want to reconsider if renting is right for you. No matter how well you screen your potential tenants, there is still the potential that they will not treat your home like you do. The JS Realty Team performs our due diligence when screening potential tenants and we have had tenants that have left our clients homes in better condition than when they first moved in. On the flip side, we’ve also had tenants that did not fare as well as we would like. You are always taking a chance when you let strangers live in your home.
IS YOUR HOME UPDATED?
Tenants tend to be less fixated on items such as fixtures, appliances, and such because they are renting and only going to be there on a short term basis. Buyers are going to be more selective when choosing a home, and may rule out one that has not been updated. If you need to invest time and money to update your home for the sale market, this also needs to be entered into your decision making process.
There are many factors that go into deciding whether to rent out or sell your home. Trust the experience our JS Realty Team members have to go over your personal situation and discover what the best options are for you. Contact us today to get started!
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.
life. Children can grow up with their same friends, continuing on through school with people they are comfortable with. It helps your family grow roots, so to speak, and feel as though they are part of a community, when you have the familiarity of living in the same home, neighborhood, and town. Children’s (and adult’s!) hobbies and sports also benefit from having the same core group of neighbors, teachers, and coaches continuously supporting them when you own your home in your community.
substantially reduces your taxes owed. As a homeowner with a 30 year mortgage, most of your payment is interest on the loan. Homes generally rise in value; this is how you build equity in your home. As you slowly pay down the loan your home’s value is rising. Making improvements to your home also adds value. Another great benefit is that you get to choose the improvements instead of living with someone else’s choices. Rents in our area are continually on the rise. Provided you have a fixed rate loan, owning your home means your mortgage payment remains the same throughout the length of the loan. And with rates as low as they are today, most people are choosing a fixed rate on a 30 year loan.
control to decide if and when you move. Most rental properties are not available to rent for more than 2 years, so this means every few years you have to start the whole process of finding a home to rent and moving all over again. Stability and being in charge of your own destiny is a very powerful and liberating feeling.
Now, there are instances when buying might not be right for you. If you are not going to be in the area for more than 2 years, you probably would be better off renting. If you are saving to buy a home then maybe sacrificing and living in a small home you rent would help you save the money you need for your down payment.