Rent It or List It
Capstone Realty Professionals in AZ presents “Rent It or List It: A Guide to Making the Right Choice for Your Rental Property.”
The real estate market can be unpredictable, and the decision to sell or rent your property can be a complex one. To help property owners make an informed decision, we have put together a list of questions to consider before selling or renting your rental property.
Questions to Ask Before Selling Your Rental Property:
- Are you ready to move on from being a landlord? Renting a property can be demanding and unpredictable. If you find that being a landlord is taking a toll on you, it may be better to sell and look for other investment opportunities.
- Is the neighborhood appreciating or depreciating in value? If the area is appreciating in value, it may be better to wait to sell until you get the best return on your investment. On the other hand, if the neighborhood is depreciating, now may be the best time to sell before the value drops even further.
- Do you have better investment options? Calculate the returns you are getting each year from your rental property and compare it to other investment opportunities such as an IRA or another rental property. If you can get better returns elsewhere, it may be time to sell your rental property.
- What is the estimated sales price of your property? Research recently sold properties in the area to determine a realistic sales price. Consider all factors, including Realtor fees, renovation costs, and vacancy rates, and compare the expected sales price with the potential rental income to determine which option will bring you the best return in the long run.
Questions to Ask Before Renting Your Property:
- Do you plan to move back to the area or have children attending school in the area? If you plan to move back to the area, it may be cheaper to rent your property and move back in later instead of paying commissions to sell and purchase another property.
- Can you cover the mortgage and expenses with rental income? If you can cover the mortgage and expenses with rental income, renting can be a smart way to build equity and fund your retirement. Consult with your accountant to understand the capital gains taxes you may incur when you sell the property.
- What is the condition of your home? The condition of your property will directly impact the rental income you receive and the type of tenants you attract. A well-maintained property will attract high-quality tenants and allow you to charge higher rent. Before putting your property up for rent, make sure to address any necessary repairs and improvements to ensure its condition is up to par.
At Capstone Realty Professionals, we recommend speaking with a qualified real estate expert with experience in both sales and property management to help guide you in making the best decision for your unique situation. For more information, and help determining whether or not your property is a great candidate for a long term rental fill out the information below and we will reach out to you.
Know Your Options Before You Sell
Want to learn more about long term property management and whether or not your property is a good candidate for it?