Should I Rent My House or Sell It?

There are many situations in which you can be asking yourself, “Should I sell or rent my house?”

Maybe you’re moving and considering keeping your house as a rental property. Or maybe you’re looking to give yourself room to save up an emergency fund or pay down debt, but your mortgage takes up a huge percentage of your income.

As experienced home buyers in Texas, we’re happy to share insights and give you the information you need to make the best decision for your situation.

Highlights:

• Should I sell or rent my house if I’m in debt?
• Should I sell or rent my house if I’m relocating?
• Sell your home for cash and avoid the stress of listing it.

Should I Sell or Rent My House If I’m in Debt?

If you’re struggling with finances and you need to pay down debts, you might consider renting out part of your home for extra income. This might seem like the quickest way to address your financial troubles, but renting out your home means putting a lot of trust into your tenants.

Selling your home means you put more money in your pocket, and it can be beneficial to choose selling over renting if you’re struggling to balance your mortgage with other obligations.

Here is what you gain from selling your home:

• Maximized Cash Flow: Selling your home results in a substantial upfront cash infusion, providing immediate financial relief.
• Ongoing Savings: Not only do you benefit upfront, but selling your home can also lead to long-term savings, improving your financial stability and preparing you for emergencies.
• Debt Management: Opting to sell can be particularly useful when dealing with financial obligations such as medical bills, credit card debt, personal loans, and other expenses.

You can always buy again later when you’re more financially prepared, but getting out of debt now could be the best way to achieve financial freedom now.

It Costs to Be a Landlord

Renting out your home can end up costing you more than you realize. Amongst other things, you will need to raise your homeowner's insurance to cover potential damage and liability costs.

Additionally, failure to adhere to tenant protection laws can land you in a legal mess. If you're not adhering to these laws, you could end up paying an attorney to settle tenant disputes in a worst-case scenario.

But surely the rent you make from your tenants will be enough to cover these potential pitfalls, right?

It's important to account for vacancies and late or missed rent payments. With increased insurance premiums, higher utility bills, and maintenance/ repairs on top of your mortgage, you may not see an increase in cash flow by renting out your home.

Covering Late or Missed Rent Payments

Managing late or missed rent payments can be both costly and inconvenient for landlords. Late or unpaid rent can strain a landlord's financial stability, making it challenging to meet their obligations, such as mortgage payments or property maintenance costs.

Furthermore, the process of collecting late payments often involves additional administrative work and potential legal fees, increasing the overall cost and complexity of managing rental properties.

Make-Ready Repairs

Make-ready repairs, although necessary, can also be a costly and inconvenient aspect of being a landlord. After a tenant moves out, landlords must invest in repairing and maintaining the property to attract new renters.

The cost of materials and labor, along with the time required for these repairs, can result in a financial burden.

Eviction Costs

Eviction proceedings can be particularly intricate and financially demanding, involving various costs such as legal fees, court filing fees, process serving, court-related expenses, mediation or alternative dispute resolution, and the potential loss of rental income. Eviction filings and proceedings alone can run upwards of $10,000.

Unless you’re passionate about becoming a landlord, save yourself the headache and sell your home for cash. This is the best way to start digging yourself out of debt because it will allow you to cut expenses while you get your finances back on track.

Should I Sell or Rent My Home If I’m Relocating?

Deciding whether or not you want to keep your home in the event of a move isn’t easy, but neither is dealing with the costs associated with owning two different properties. A popular reason some might consider keeping their home after moving is to use it as a rental property to supplement income.

While real estate can be a good investment for those prepared to take on the challenges, ask yourself if you’re financially prepared to be a landlord. On top of property taxes and utilities, essential home maintenance projects average $6,413 annually.

If you don’t have experience as a real estate investor, you could end up in a bad situation.

Remember, owning a home comes with a myriad of costs, including mortgage, insurance, repair and maintenance costs, utilities, and property tax. If you’re just able to afford one home comfortably, you may not want to add more financial stress — being a landlord isn’t as easy as handing over the keys and collecting rent.

Moving isn’t cheap, either, so focus on investing in your new home and moving costs. Big State Home Buyers can get you a fair cash offer for your home and take care of the selling process.

Should I Sell or Rent My House Out Longer?

If you’re a landlord, you know how hard it is to keep up with the responsibilities. Not only are you on-call for repairs and other tenant issues, but if you want to outsource this work to a property management company, it’s going to come at yet another expense.

Property managers charge between 4% and 7% of the total rental income, but smaller properties could face charges upwards of 10% of the total income.

Landlords often lose money keeping up with their rental properties. Selling your property for cash could relieve you of that ongoing stress.

Reduce your workload so you can spend more time with your family and friends, on your hobbies, and avoid the potential financial repercussions that come with a property that costs more to maintain than it does to rent out.

Sell Now, Enjoy Later

The answer to the question “Should I sell or rent my home” is simple: how much longer can you afford the stress?

Don’t let your property hold you back from living your life. If you’re looking to get out of a large mortgage, tackle debt, you’re relocating, or can’t keep up with the repairs on your home, let Big State Home Buyers cash you out.

We buy homes in any condition, so you don’t have to worry about renovating before selling to us. Stop worrying and start living in as little as seven days — get your fair cash offer today.

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