There is a good chance your existing home will not suit your needs forever. If you currently live in a condominium or a smaller starter home, you may want to upgrade to a bigger house as your family starts to grow. If you live in a larger home, you may want to downsize when your kids move out. You may also face a situation where you or your partner need to move for work. In all of these situations, it is time to say goodbye to your current home and address.

At this point, you have a big decision to make. What should you do with your current home and property? Does it make sense to sell or rent it out? You can read this blog article from Houzeo to help you make the right decision and use the information here. Considering a few factors will help you feel confident in the decision you make.

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Consider the Distance

If you are planning to move nearby, it may be possible to manage a rental home. However, if you move to another country or even another state, managing a rental home may be impossible. Even though the costs to visit your rental property – like hotels, food costs, plane tickets, and taxi fare – are all tax-deductible, they are going to impact your rental profit.

While you can hire a property management company to handle these tasks, this will also cost money. If the distance is too far to take care of your home and maintain it, selling may be the best option.

Stress and Time Considerations

Being a landlord is an emotionally draining and time-consuming job. You will be responsible for everything, from advertising the property to showing the home, running background checks, and ultimately renting it. You have to field calls from your tenants, handle all the repairs and maintenance, and deal with emergencies that occur.

While you can hire the property management company to handle this for you (as mentioned above), they will charge a minimum of 10% of your total rental revenue. You have to consider the financial aspect of the situation to figure out if this is worth it. You should also consider if you want to deal with all this additional stress and hassle.

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Costs and Expenses

Ideally, you can keep your home rented most of the time and cover all or most of your mortgage payments. However, in many situations, you will have to pay double mortgages – one for your rental property and one for your primary residence. Even if you do not have a tenant, you still incur other related costs, too, including advertising, maintenance, insurance, legal, and more.

Also, in many locations, it is challenging and expensive to evict a tenant who does not pay their rent. If you have a tenant that causes damage or who will not pay, you may not be able to make any profit for several months. It also means you have to cover the cost of an attorney, repairs, cleaning, and lost rent. If you are like many people, you may just want to avoid this hassle altogether – which can be done by selling your home.

To Sell or Rent: The Choice Is Yours

There are pros and cons to both selling and renting your home. You have to decide what makes the most sense for you and your situation. Everyone is unique, which means you need to carefully consider which option will result in the most benefits and profits for you. Being informed and knowing what to consider is essential when making this decision.