To Sell or To Lease Your Property: 6 Things to Consider

The possibilities that your current home will not meet your needs indefinitely are high. As your family expands, you may want to move to a larger property if you live in a small house or a rental.  In case you already live in a large house, you may need to downsize your private home when your kids no longer live with you.

So, here are a few factors to consider when deciding whether it’s better to rent out your property or sell it.

1. Your cash flow

Money can play a big part in these types of decisions, and so it should. In order to decide whether you should rent or sell your home, you should consider your financial position. Are you in a good place financially, or are you relying on the money from your home’s rent/sale?

If you can afford to live comfortably without the added income from your property, then you could rent it, but if you are reliant on the money to live, then consider selling your house and trying to get the best price.

2. How the property will affect your cash flow

Consider your financial condition, housing environment and any other responsibilities that will be involved with each option and how this will affect your financial position. Both options come with added costs. However, you must consider which is more costly to you compared to what you will get in return.

If your home value doesn’t satisfy you, you may want to do some remodeling to make it more valuable. You will also have to pay for a real estate agent, lawyers etc. If you decide to rent the property, you will have to pay for landlord insurance, perhaps remodeling and redecorating fees, you will also have to pay a letting agent and cover the cost of any repairs over time.

4. Commitment and responsibilities

Being a homeowner could sometimes be emotional and time-consuming, but it will not come with the same level of commitment and responsibility that being a landlord will, so this is an important factor to consider when it comes to selling vs leasing a property.

The home rent ad costs, arranging home inspections with prospective tenants, and carrying out background checks on them before deciding whether to rent are some of your responsibilities as a landlord. You’ll need to maintain constant communication with your property agent and tenants, carry out regular maintenance and repairs on the property to keep it in good condition and meet minimum housing regulations.

Set your feelings aside when making the vital property sell or lease decision. This can be easier said than done. However, it is important to do so – that way, you can make a logical decision.

Research things properly if you are considering leasing and understand the business. Could you see yourself moving in the future back into the property or are you ready to cut ties for good?