Wondering if you should rent or sell your property? There are a lot of factors that should contribute to your decision.
Deciding the rent or sell, while a largely personal decision, it often comes down to finance. You may not have received an offer for the price you would like on your home, the market may feel unstable or you might need that immediate cash injection.
Here are a few things to consider:
Immediate Finance: Even if you aren’t able to achieve the sales price you were hoping for, the large sum you’d receive from the sale is something you may need to pay for your next property.
If you decide to rent, make sure you can still come up with a decent deposit from other means. In some cases, you also might need to renovate or update the property to achieve a higher sale price.
Long-term cash flow: Take the time to research how much you’ll realistically be receiving in rent. Ideally it would cover the mortgage, upkeep, and other expenses. Consider whether it would seem like a good investment if you were buying the same house as a rental property. You might want to talk to an accountant or other financial advisor about whether or not renting out this house is a smart financial decision.
The local rental market: This is where our team is an excellent resource! Get in touch to find out what the rental market is like and keep up to date via our Instagram @rentals.richardmatthewsre.
Like with sales prices, you’ll want to research comparative properties in your area to see what kind of rent you might expect. While you might want a higher amount or be afraid of getting “low-end” tenants, you shouldn’t price yourself out of the market. Think about whether renters in your area will be expecting a furnished house or paid utilities. You’ll also need to figure out if your neighbourhood and your house are likely to attract people interested in renting as opposed to buying.
Being a Landlord: Unlike selling your house, you won’t be able to just walk away from a rental. You’ll need to worry about ongoing maintenance and upkeep, and the process of screening tenants can be a lot more work than finding a buyer, especially if you have high turnover.
You will need an experienced team to assist with the management of your property. Richard Matthews will take the hassle out of being a landlord and will handle all the admin work from leases through to tribunals.