Should I sell or rent my house?
That is a question we hear very often lately. In this article, we are going to try to help you make a decision by reviewing a few key questions. Everyone has a different answer to them and your personal situation will be the major decision factor.
Transcript of the video:
Hey, Nadia White here.
Lately, when we visit houses that people want to put on the market, and sell us, we get a question that comes up almost each time, and that is: “should I sell my house, or should I rent my house?” Well, there is no definitive answer to that question, and there is no “one size fits all”.
It all depends. But you will have to consider at least four things, and we are going to go through them today, to help you make a decision there. The first thing to consider is, do you own your house free and clear, or do you still have a mortgage on your house? Big financial impact.
Number two is, do you want a big sum hitting your bank account, or do you want a monthly recurrent payment for the years to come?
The third question is, are you made to become a landlord?
And, the fourth question is, are you close or far of your rental?
So let’s see for the first question. Of course, if you own that house free and clear, it’s going to be a little easier, because the rental amount that will be paid to you (hopefully every month) is yours. Make just sure that you have some money set aside for the maintenance, the repairs, the taxes, and the insurance.
If you still pay a mortgage on the house, well the rent should at least cover the payment of your principal, interest, insurance and taxes, and some surplus to also face the repairs and the maintenance.
Now, the second question is, do you want a monthly payment, or do you want an amount of cash? Well let’s see. What are your needs right now?
Do you need money because of college tuition for the kids is coming? Do you need to reimburse some debt on your credit cards? Do you need a new car? Do you move to another state or another country? Do you want to have a certain amount of money in your savings account? I don’t know, but in that case, a cash amount is probably what you are looking for.
Now if you want to create residual income for your retirement, landlording could be an answer. However, keep in mind that you can have residual income from real estate without ever have to own a house, or swing a hammer. And we are going to talk about that in other posts.
Now the third question is, are you made to be a landlord? Now, you could be very good at it, but keep in mind that being a landlord requires interpersonal skills, patience, and kind of love of people, because tenants can be a pain in the rear end. However, if your screening process is real good, or if you ask help from a property management company, you could avoid those people, and then landlording can become real good.
Now, the fourth question is, how far or close are you living from your rental? If you are far away, you probably will have to consider a property management company to help you to keep an eye on the house and do some at least basic maintenance.
But no matter what, you will have to talk about that with your spouse, with your children, with your family, I don’t know.
We are also open to talk with you about it. If you want to bounce ideas, if you want an open and honest conversation about it, please do not hesitate to contact us. Click on the link at the bottom of this post and we will get in touch with you. Or, you can also call us. Our phone number is 704-322-4232, and you can even choose to talk to my husband, Gene, or to me.
Well, see you next time, bye.