Judith Sutton ABR CRS IDS PMN ASP IAHSP SRES GREEN
Judy@JudithSutton.com 908 803-0472
EXPECT MORE
TO RENT OR SELL?
…that is the question!
Whether to rent or sell? This question comes up often with buyers and seller’s alike. Should I rent out my current home and test various cities and locations elsewhere…or should I simply sell it and move to a more desirable location? There can be many varied reasons for each family, but the main cause for indecision is that they are unsure of their own personal long-term plans.
Some might have a home at the shore, or in another state, and are not quite sure they want to make it their full-time residence. This usually leads to considering renting their primary home so that they can come back to it if they decide the move was not for them, or not what they expected.
Others have said they know rental prices have increased and they could benefit from that while they consider traveling or trying out a rental for themselves, in some other area. Today, more homeowners are considering renting their home instead of selling it. (The data shows that sellers though about renting their homes in 2024 (66%) before listing it). Compare this with 2021 stats showing about (47%) considered this same alternative. This trend shows renting is on the rise.
So, should you sell your house and use the money towards your next home, or keep it as a rental to build long-term wealth?
Here are some important questions you should ask yourself while deciding the right path for your lifestyle and financial goals:
IS YOUR HOME A GOOD FIT TO RENT?
If you plan to move far away, managing ongoing maintenance might become a major hassle. Also, decide whether your neighborhood is ideal for a rental. Does your house need significant repairs before it would be ready for tenancy? If any of these situations are familiar, selling may be the more practical option.
ARE YOU READY TO BECOME A LANDLORD?
Managing a property involves more than collecting monthly rent. It can become time consuming and challenging. Frequent maintenance calls, discovering damage that needs to be repaired before the new tenant moves in. What if the tenant misses payments, or breaks a lease? This can add unexpected stress and financial strain. Again, selling your home may be a more practical choice.
UNDERSTANDING THE COSTS
If you are considering renting as primarily passive income, there are additional costs to anticipate. BANKRATE weighs in:
Mortgage and Property Taxes: These must be included and considered in the rental pricing.
Insurance: Landlord insurance typically costs about 25% more than regular home insurance.
Maintenance and Repairs: Plan to spend at least 1% of the home’s value annually; and even more if the home is older.
Finding a Qualified Tennant: This involves a through screening to include a background check, credit check, current and past employment verification, past rental history (if any). This can take more time than expected.
Vacancies: If your property sits vacant between tenancy’s you will lose rental income, and have to cover the cost (of your mortgage if applicable) and expenses until a new tenant is found.
Management and HOA FEES: A local Property Manager can ease the burden, but typically charges 10%-15% of the rent. HOA fees are an additional cost, too.
These personal decisions must be thought-out and considered before you make a decision. Also, help from professionals such as your financial advisor and real estate agent will make you feel supported, informed, and smart as you make your decision.
For more in depth help and information, please contact me. I am here to help.
LIVE. LOVE. LOCAL…
Call me! 908 803 0472
I’d love to give you a detailed picture of what our company and I can do for you!
By incorporating my personal attention and guidance into the marketing strategy I aim to provide you with
an Exceptional Selling Experience
while ensuring that your property receives the exposure needed
to attract buyers from anywhere
Your Local Real Estate Connection
Get a positive, helpful partner for buying or selling your home:
Trusted resource for answers about the process
Innovative marketing strategies
Expertise about neighborhood features
Ability to target home searches
Strong negotiation skills
Support through the closing and beyond
Why would you settle for anything less?
Adding value for my clients and loving where we live!
Judy@JudithSutton.com
COLDWELL BANKER...GUIDING PEOPLE HOME SINCE 1906
908 803-0472
"...the right relationship means everything..."
SERVING THE SOMERSET HILLS AREA ONE CLIENT AT A TIME
Service & Experience
since 1983