If you’re a homeowner looking to relocate, you’ll have to decide whether to rent or sell your property. The hot housing market has pushed property prices through the roof, giving homeowners plenty of reasons to sell. However, with many families relocating to a certain state, the rental market also offers a tempting proposition.
So, which is the better choice: renting or selling? Read on as we discuss both sides of the issue and help you decide that best fits your situation.
Rent Your House If:
It can be beneficial to rent your house if it is in good condition and a favorable neighborhood. You should also consider if you have adequate cash reserves to pay for your new property.
When you rent out the house, you continue to build equity on it as you repay the mortgage with the rental income. Also, the property’s value continues to rise over time, providing you with a handsome sum if you decide to sell sometime down the line. You turn it from financial liability to a profitable asset by keeping your house.
Generally, landlords in Massachusetts charge around 1% of the property’s value as monthly rent. So, if your home is valued at $200,000, you can earn a rental income of approximately $2,000 per month.
But renting a property does take work. You have to maintain sufficient cash reserves in hand to cover recurring maintenance costs. And then there’s the trouble of dealing with bad tenants who trash your property, do not pay the rent on time, or refuse to vacate. If you would rather avoid the hassles of managing a second home, then it’s better to sell it.
Sell Your House If:
Selling your house can be the best solution if you need the cash from the sale to pay for your next home, or you would rather avoid the costs of being a landlord. There are several reasons why selling your home is a better choice than renting it. Here are a few other compelling reasons to sell your home:
- The housing market is good, and there is a surge in demand for homes in your neighborhood.
- You don’t want to spend time or money on the property.
- Your home is in bad shape and requires plenty of work before it can be made rental-ready.
- Your house is in a bad neighborhood.
- You don’t have adequate cash in hand to pay for periodic maintenance and other emergencies.
- Your home requires high maintenance due to its age.
- You are moving far away and won’t be around to act as the landlord.
If you find yourself dealing with any of the above scenarios, it’s better to sell. Reach out to top-rated cash home buyers and ask them, “How can I sell my house as-is?” They’ll do a quick inspection of your home and come up with a fair offer. If you’re interested, you can sell your house quickly and without any hassles.
Which Is Better: Selling or Renting?
Every situation is different. So go through the pros and cons and choose the right option that works for you financially.