Is Renting Out Your Home Better Than Selling In These Times?

Life is about changes.

Life is a series of changes. Every day and every season brings new challenges and the need to adapt to unique circumstances. And not only in our personal lives but also in our decisions regarding our real estate property. 

Many different personal circumstances may bring us to the point of choosing between selling a house or renting it to tenants. Those might be long-term (or permanent) need to change location, a divorce, or an inheritance. These are just a few examples of situations that force us to decide on a property we no longer use as our primary residence. 

It is (mostly) about numbers.

So, what comes next after you realize you are facing that decision? We make the best decisions regarding property by taking a hard, unpassionate look at numbers. In the following paragraphs, I will comment on the numbers you need to consider. 

• Is the house located in a seller’s or buyer’s market? Who has the highest negotiation power in your area? Are there more potential buyers than available homes? Or is it the other way around? I track the Bay Area housing market every month. I base My insights on California Association Of Realtors data, and you can see the mood of your local market down to the County level. 

• Is your mortgage underwater? Bankers define an “underwater” mortgage as one in which the home’s value is below the amount owed. It is a sad situation for anyone, one that limits the options you have regarding your home. 

• Can you pay your home’s expenses with the rent you can realistically get from your tenant? Even if you decide to rent your home, you will still be liable for local and State taxes, mortgage payments, inspections, and maintenance.  

• Are you ready to become a rental property owner? Dealing with tenants, contractors, and vendors is time-consuming and intense. Watch this Cal Agents video to see and listen to what I am talking about. 

We are your partners

At The Cal Agents, we have guided many property owners facing this dilemma. We listen attentively to their stories and crunch the numbers together until the best possible outcome appears. We pride ourselves on being on the side of our customers during all those life-changing events that impact their real estate decisions.