Should I sell my house or rent it out?

If you can afford to hold the property and the rental income covers your costs, renting is usually the better long-term play, especially if you think prices are temporarily down in your area. Selling in a declining market means you're locking in a lower price. Renting lets you hold the asset, collect income, and wait for the market to recover before selling if you choose to later. You also keep building equity through mortgage paydown while a tenant covers the payment. Before you decide, run the rental numbers. What would the home rent for in your area? Does that cover the mortgage, taxes, insurance, maintenance, and property management? If it cash flows or breaks even, holding makes financial sense. If you'd be losing money every month just to keep it, selling might be the smarter move. Watch out for a few things. Being a long-distance landlord is harder than being local, so budget for a property manager. Your homeowners insurance needs to switch to a landlord policy. Check your mortgage terms to make sure there's no owner-occupancy requirement that would be violated by moving out and renting it. And talk to a CPA about the tax implications, because once you convert to a rental, the capital gains exclusion rules for your primary residence start changing based on how long you've been away.

Deciding whether to sell or rent your home depends on your financial situation, your timeline, and your willingness to operate as a landlord, and there is no universal right answer. In South Carolina and throughout Florida, renting produces ongoing income and preserves the asset for future appreciation, but it also means you are a landlord with responsibilities for maintenance, tenant management, and vacancy risk. In Hernando County and Citrus County, rental demand has been strong, and single-family homes in the $1,200 to $2,000 monthly rent range have maintained low vacancy rates given continued population growth along the Nature Coast. Selling converts your equity to cash or to a down payment on your next property, avoids landlord obligations, and may be the right choice if you need the capital or if carrying two properties creates financial strain. The decision often comes down to whether the property would cash flow positively as a rental after accounting for the mortgage payment (if any), insurance, taxes, maintenance reserves, and property management if you are not managing it yourself. Run that analysis with real numbers rather than projections. If the property cash flows positively without requiring significant management time you do not have, holding it may build long-term wealth. If the numbers are tight and the landlord obligations are a burden, selling is a clean exit. Kevin Neely & Kaitlynd Robbins | K2 Sells

A few things to keep in mind...... Are you looking at turning it into an investment and all that goes along with that process? Can you buy another home without selling the current home? In most of the counties in SC the taxes for a 2nd home QUADRUPLE because you do not get the primary tax rate break. That is something you need to look at for your county and factor into the rental process. I also recommend, having a minimum of 6 months of reserves to pay the expenses on the home in the event that you run into issues with a rental eviction process. Do you have the money if a rental goes sideways to do renovations? I have seen the expenses of that process be way more than what a short-term immediate loss may be for selling for a little less. If you do not want to get into the landlord investment business seel it now as this market currently is still in good condition in SC area. AND TALK TO A LOCAL EXPERT REALTOR! This is key to making this decision based on your net on the home and the current market values.

If you are planing to get into investing more I recommend renting it. I personally think you should try renting it out and see if you like it. Its great to get more income .

Maggie, The first question you need to look into is if you can swing two mortgages if your current home still has a mortgage. The second question is, Do you want to be a landlord? It can be tough being a landlord at times, but is a great way to build wealth. Home prices go down for a short period of time but overall home values are continuing to increase in value if you look at the market overall.

Renting our your house means looking at your home as an investment vehicle and seeing if it makes sense; something your agent can help you determine. Things to consider, how long you plan on renting the property? When you go back on the market, what will you have to do to be ready for the market (painting or repainting, rehabbing, etc)? Will the property need to be vacant when selling it or will it be ok to sell with the tenants there? If you have equity in the home, if you rent it, do you risk losing your tax free benefit in the equity you have now? If you were to buy this house as an investment property, would you? Why or why not?

Renting your home is always a great option to consider before selling. You will definitely want to consider many factors like your current financial health and if renting it would prevent you from buying in the first place. I would look out for issues regarding management, are you going to be close enough to fix something or do you have someone to be on site in the event of an issues? What would be your CAP rate on renting vs selling the home and moving those funds into another investment? There are many financial questions to answer but they all revolve around what your long term goals are going to be. DO NOT RENT if you are tight on money. There are many expenses with being a landlord and your home would no longer be as liquid as it is now.

Nobody knows what the future will hold. If you can afford to rent your house and buy a new one that is always a good way to build wealth. It is not without difficulties and should be treated as a business.

Several factors may play in to that. One of the main factor is, if you chose to rent it out, will you be able to cover the mortgage for that house as well if for instance, you go a few months without a renter in the house? Quite a few saw the horror during the pandemic in renting out and tenants not being able to pay the monthly rent and it takes a minute to try to get them out of the house. Make sure you make a list of pros and cons of renting verse selling and then make an informed decision based upon that. Not everyone wants to be a Landlord or even wants to deal with those problems that will occur with rental properties. Definitely not all glamorous.

Maggie: I would advise that you work with a trusted lender and find out if you have the option of keeping the home. It may be that you would not qualify for another home loan until you sell your current home. If you can qualify, rental properties are a good way to build wealth, however, not everyone is cut out to be a landlord. I would speak with a friend who has rental homes, or a friend of a friend etc., to do some research on what it means to be a landlord. Do the research to make sure you know what you would be getting into. Take care.

It depends how long are you expecting to live in your home. Do you expect your rent will not change over the next 5 years? How long have you been renting?