According to the PEW Research Center, it's estimated that there are nearly twenty million rental properties found in the United States. When you consider the lucrative nature of renting, it shouldn't come as a surprise that there are many properties.
If you own a home that you no longer live in, you generally have two options: rent or sell the house. Now, both of these options come with their own pros to consider.
So which one is right for you? And what types of long-term considerations should you take into account? In this guide, we'll answer these questions so you can make the best decision based on your lifestyle preferences.
Financial Benefits of Renting
One of the primary advantages of renting your house is the steady income stream it can provide. If you choose to rent, you can collect monthly rental payments, which may exceed your mortgage costs.
This can create a positive cash flow, allowing you to cover mortgage payments and other expenses. Additionally, it's important to consider property investment tips; holding onto your home can yield significant returns over time, especially in a growing market.
This is especially true if your property is found in an up-and-coming neighborhood. By renting, you allow your property to appreciate while benefiting from rental income.
Furthermore, there are tax advantages associated with being a landlord. You can often deduct expenses such as repairs and depreciation, enhancing your financial situation with valuable financial advice for homeowners.
Financial Implications of Selling
The lump sum you receive from the sale can be utilized for various financial goals, such as paying off debt, investing in new opportunities, or funding a new home purchase.
This immediate access to funds can be a powerful motivator for many homeowners. Selling also allows you to avoid ongoing costs associated with being a landlord, including maintenance, management fees, and property taxes.
By selling, you eliminate these burdens and can enjoy peace of mind without the responsibilities of property management.
Current market conditions can play a crucial role in your selling decision; rental market insights can help you gauge whether it's the right time to sell. If you're in a seller's market, you may achieve a higher selling price, maximizing your profit.
Long-Term Considerations
When deciding between renting and selling, consider the importance of investment diversification. Selling your property can provide capital that you can reinvest in other assets, potentially leading to greater returns and more informed real estate decision-making.
This strategy allows you to broaden your financial portfolio beyond real estate. For some, the attachment to a family home can make selling a difficult choice.
On the other hand, becoming a landlord may not align with everyone's lifestyle goals. However, the good news is that property management companies can help you without interrupting these goals.
Need to Rent or Sell House? Contact PMI Phoenix Metro
We hope this guide helped you decide whether to rent or sell a house. Here at PMI Phoenix Metro, we know that making this decision can be a hard choice. However, regardless of which option you choose, we're here to help.
Whether it's our widespread property management services or our extensive listings database, we're here to help. So get in touch with us today to get the help you need.
