It’s time to move. What do you do with your home?
Selling it seems obvious, but what if you considered using it as an investment property?
Long-term, there could be more money for you if you rent it out. However, in the short-term, it’s a tough decision.
Let’s look at some things to consider when deciding on renting your home vs. selling it.
Selling Your Home
It’s a great time to sell a home in Florida. The market is good, and home prices are consistent with home value.
If you’re ready to walk away from your home or you need quick cash, selling is a great option.
But first, consider your return on investment.
- How long have you lived in the house?
- What improvements have you made during the time you’ve owned it?
- How much money have you put into the house for upgrades and repairs?
Most important: will you recover what you’ve put into the house with a sale now?
If it’s critical to you to break even or make money, factor in your home expenses over the years. Compare those expenses to the reasonable selling price of your home in today’s market.
Renting Your Home
If a current market price for your home leaves you losing money on your home, consider renting it.
Let others help recover your costs after you’ve moved. Or even better than breaking even, let tenants turn one of your assets into a long-term income-generating investment for you.
Always do some research. If the market won’t return what you need with a sale, check the rental market for your area. It could be a better option.
- How many homes are rentals in your area?
- How many are occupied?
- Is your community an attractive place for renters? Or do more people own their own homes?
- How much could I charge for monthly rent?
- What are the potential monthly expenses for insurance or maintenance?
- What is your potential monthly income if you lease your home?
A sale will provide quick cash, but if the market is favorable to turn your property into a rental, it might be worth it to pursue the longer-term potential to your investment portfolio.
As you do your research, consult with your financial planner to help make the best decision for your financial future.
Are You Ready to Be a Landlord?
If your research and your counsel find that all signs point to you becoming a landlord, are you ready for that?
It’s a commitment.
It’s also a rewarding investment opportunity. Ask yourself a few “landlord-ready” questions:
- Can I handle maintaining the home where I live and the house I’ve recently vacated?
- Do I know and understand landlord and tenant laws in my area?
- Am I comfortable choosing the right tenants for my property?
- What do I do if they have an emergency or a repair is needed?
- How do I collect rent?
- How do I list my home?
- Could you evict a tenant if necessary?
If any of those questions scare you out of considering renting your home, don’t give up just yet. Being a landlord is a skill you can develop over time. There’s plenty of help available when starting as a new landlord with your first property: an experienced property manager.
Most often, landlords find the headaches or frustrations with a tenant pale in comparison to the rewards of an investment property.
If the market looks good, you have a little bit of patience, and you can find the right resources to help, renting your property might be right for you.
Manage Your Property With Professionals
The great news is that if you supply the home, there are experts in your area to help you do all of the things that seem scary about being a landlord.
Imagine never having to list the home, screen a tenant, make repairs, or collect the rent. Sounds pretty great, right?
Getting paid without having to deal with the day-to-day of being a property owner is not only a reality–it’s a dream come true.
Partnering with the best local property management company is the way to make money on an investment with little to no interruption to your life. With a property management company, all of the details are done for you.
RPM Saramana is your expert Sarasota and Manatee area property management company. We do everything from getting your property ready to rent, analyzing the market, helping list your home at the right price, and keeping it full with the right tenants.
If you’re considering renting your property, contact us for a free assessment. We’ll review your property and make sure it’s a wise investment and a good fit for our team.
We’ll take it from there and help you make the most of your investment property in Florida.