Should you rent your home out or sell it in today’s market? Here’s what you need to know.
Selling your Minneapolis home? Check out our free home value report
Buying a Minneapolis home? Search all homes for sale
As a homeowner, you have two options when it comes to maximizing your investment: sell your home or rent it out. Which is a better option? I’d like to break down the pros and cons of each for you today.
What are the benefits of renting your house to a tenant? The first benefit that most people consider is the extra monthly cash flow, or at least possible monthly cash flow.
Here’s the reality, though: your expenses are not fully offset by the rent money coming in. There are other expenses involved in renting out your home that you may not have considered in addition to your mortgage payment. You’ll need to calculate this additional expenses in order to determine how much to charge in rent. The other benefit to renting is that renting your home will allow you a few key tax write-offs which will also help offset some expenses.
What are the downsides to renting your home out? One of the biggest negatives, which I think that everybody knows, is the fact that you’ll have to manage the property while renting it out. We’ve all heard horror stories about working with tenants and maintenance issues with the property at inconvenient times. These can become major burdens and major expenses for you, so if you’re looking for recommendations for management companies, I can put you in touch with a few great ones.
“
”
Renting your property out may come with extra expenses and responsibilities.
”
Something to consider in our market is the fact that low inventory and low interest rates have made right now a great time to sell a home. Interest rates may rise in the near future, and as a result, resale home prices may be affected. For this reason, you may have a large buyer pool if you decide to sell your home now rather than in the future.
Whether you’re thinking about renting your home out or selling it, I can help you make any and all tough decisions. If you have any questions about whether you should rent or sell your home or anything else related to Minneapolis real estate, give me a call or send me an email. I’d be happy to help you!
