In the market today, many are finding themselves sitting on a property that won't sell. With high interest rates and prices rising on living expenses, it is getting harder to find a buyer. This forces many to make a decision, drop the price on their home significantly to find a buyer, or sit on the property. Selling the home prematurely can be frustrating; if there is any desire to wait, renting out the unit during that time can be a good solution for the time being.
Renting and selling are vastly different markets; they have their own positives and negatives. When renting out the unit, you can play with the price more easily than when selling. Most leases last a year, and then you can reevaluate the rent. Selling is a one-time deal, no reevaluating. Buying a home has become a luxury and not a part of the normal steps of life; renting has become the new normal. More people are looking for a place to rent rather than a place to buy. This gives more opportunity to fill the unit. With more people looking to rent out a unit, the chances of finding someone become higher than the chances of someone buying a home.
Selling is a big payout if you need cash fast, but rentals can become a source of passive income. Owning a home always comes with a cost; houses need upkeep. It is important to plan to spend money to upkeep the property when you own a rental. With that being said, once you have a tenant in place, rent will also be coming in, causing cash flow for some of those expenses that arise. Throughout the years, the rent that comes in can outweigh what you can get from selling the unit. With that being said, renting out the unit doesn’t have to be a permanent decision. Once you are ready, you can still sell the unit and get the big payout you were hoping for in the beginning. You can more easily watch the market as well and sell when the market is at its best, instead of being forced to sell when the market may not be at the place that best benefits you.
Some of the biggest fears that come from renting out your house are problems with tenants, managing becoming time-consuming, and upkeep. If you would like to be hands-off the unit as much as possible, you can have a property management team oversee the unit. There is no guarantee of perfect tenants and no upkeep, but they can help lessen those issues. Screening tenants, collecting rent, inspections of the home, contact with tenants, and vendors are just a few things they can help with.
There is no way of knowing how the market will turn; it's good to keep your options open. There is no need to sit on your property hoping to get a better deal when selling; you can be active in your home and rent while you wait. It might be something you decide to do for a while.
Hero Property Management is here to help you rent out your home. If you decide you want to rent while you wait to sell your home, we are here for you! Contact Hero Property Management today to schedule a free consultation (801) 845-4390.