When you own a home and it’s time to move for a new job, to transfer out of state, or because you want to downsize to a smaller house or upgrade to a bigger one, you might assume that you need to sell your house. But, it may or may not be the best choice, depending on the market.
Selling vs. Renting
When you sell a home, you get one payout. But, you might not get back all the money you put into it over the years. Or, maybe you will just get part of it back. You could be thinking about retirement. Instead of selling your home, you can turn it into a rental property. That’s a great idea for a number of reasons, and if you’re not sure how to start and whether it’s the right choice, talk to a real estate and property management expert.
Benefits of Renting Out a Property
When you put your property on the rental market, someone else will pay the mortgage for you. When you hire a property manager, you will know the investment is protected. Even if you’re not in the area, you can be sure a professional is doing inspections, taking care of maintenance, and placing good tenants in your property. You’re also building equity as you rent it out. So, you’re increasing your value with no effort. At the end of the day, you can take that property after it’s been on the rental market, and sell it 8 to 10 years later. You can take the money you earn off that sale and buy one or two new investment properties. This will help create a good retirement strategy that provides you with residual income. It’s a wonderful alternative to the stock market.
Benefits of Selling a Property
Selling a house allows you to capitalize on the property's appreciation over the years, providing you with a lump sum that can be reinvested or used as you see fit. This process grants you the flexibility to explore new investment opportunities or even diversify your portfolio by venturing into different markets.
Why Renting is Better Than Selling
Choosing to rent rather than sell offers numerous advantages in the realm of real estate. By opting for rental income, you ensure a consistent and reliable cash flow, with tenants essentially covering your mortgage expenses. This approach not only allows you to retain ownership but also provides financial flexibility, enabling you to reinvest your earnings in additional income-generating properties. Renting provides a secure and hands-off investment strategy, as professional property managers handle inspections, maintenance, and tenant placement, relieving you of day-to-day responsibilities. Moreover, the long-term equity growth and potential for a solid retirement strategy make renting an appealing and sustainable alternative, surpassing the benefits of conventional property sales.
So if you’re thinking about selling, think about investing instead. Contact a Realtor and a San Antonio property management company to talk about this option. If you have any questions about selling or renting, please contact us at MHN Property Management.
Read more on renting vs selling with our free guide, "Renting vs Selling Your Home: a Complete Guide."