“Opinion is the medium between knowledge and ignorance.”
Whether or not you agree with Plato on this point, you will appreciate the value of solid research when it comes to making critical financial choices.
For example, when life turns down an unexpected path and forces you to reconsider your property decisions, you want more facts and less opinion, right? Choosing to rent your home out may seem daunting, but perhaps you’re not ready to sell. What’s the right decision in the rent vs sell debate?
There’s certainly a lot to consider, so let’s take a balanced look at both sides of the discussion to determine the right choice for you.
Factors Affecting Rent vs Sell Decisions
It’s worth noting that there’s no right answer to the rent vs sell question. Market conditions form part of the equation but there are other personal decisions that only you can make.
Show Me the Money
Start by checking your property value. Home prices in Utah may be at an all-time high which makes it the perfect time to sell your home. If it makes financial sense to do so, based on these numbers, then that’s a check in the selling box.
Don’t discount property rental information just yet. A little research on current rental demand and pricing will give you an idea of what you could expect in rent. Will this amount cover your mortgage repayments and leave a little in the pot for maintenance and unexpected repairs?
As a final financial checkpoint, make use of an online rent vs sell calculator. This clever tool takes into account your personal circumstances to assist in making an informed financial choice.
If you’re leaning towards the rental route, ask yourself these questions:
- Can I still afford to rent or buy while I own this property?
- Should I use a property manager?
- What fees do property managers charge?
- Can I carry the mortgage payments if my property is vacant?
- What if rental prices will fall in the near future?
- Have I factored in the additional taxes from this rental?
If you’re emotionally attached to your property and are loathe to let it go, then renting it out makes sense. This is also true for those who are working out of state or who have hit a financial speed bump and can’t afford the mortgage repayments.
Selling may be a better option if your home needs extensive renovations before it will be an acceptable rental property. Will the money you spend produce a viable ROI?
Of course, if you simply can’t decide whether to rent or sell your home then put the choice off—for now. Talk to a property manager to arrange a short-term tenant while you weigh up your options.
Get Your Facts Right
Engaging in the property market comes with its own set of challenges. Headache-inducing clauses and contracts along with additional fees and taxes can be daunting.
However, if you need sound advice from a friendly and professional team, then you’re in the right place. We are keenly focused on keeping our clients 100% satisfied with excellent service and super-fast turnaround times. Please feel free to contact us for more information if you’re stuck in the rent vs sell dilemma.