Weigh the pros and cons of each path to make the right decision for your financial and lifestyle goals.
Sell or Rent Your Home in Orlando
When you’re ready to move, deciding what to do with your house is a major choice. Nowadays, more homeowners are considering renting their home rather than selling it.
Recent data from Zillow reveals that about two-thirds (66%) of sellers thought about renting their home before listing, with nearly a third (28%) seriously considering the option. This is a notable increase from 2021, when fewer than half (47%) of homeowners explored renting before selling, showing the growing trend.
So, should you sell your house and use the proceeds for your next home, or keep it as a rental to build long-term wealth? Let’s explore some key questions to help you determine the best path for your financial and lifestyle goals.
Is Your Home a Good Fit for Renting?
Before making a decision, it’s important to evaluate if your home would make a good rental. For example, if you’re moving far away, managing the property from a distance can be a challenge. Other considerations include whether your neighborhood is favorable for rentals and if your home requires significant repairs before it’s tenant-ready.
If these issues apply to your situation, selling might be the more practical option.
Are You Ready for the Realities of Being a Landlord?
Being a landlord is more than just collecting rent. It’s a time-consuming and sometimes challenging commitment.
You may face maintenance calls at all hours or discover repairs that need to be done before a new tenant moves in. There’s also the potential for tenants missing payments or breaking their lease, which can cause financial stress and added complications. As Redfin highlights:
“Landlords are responsible for fixing issues like broken pipes, HVAC malfunctions, and structural damage. If you don’t have several thousand dollars available for repairs, you could find yourself in a tight spot.”
Do You Understand the Costs?
If you’re considering renting as a way to generate passive income, keep in mind that there are additional costs involved. According to an article from Bankrate:
- Mortgage and Property Taxes: These expenses still need to be paid, even if the rental income doesn’t cover them fully.
- Insurance: Landlord insurance usually costs about 25% more than standard homeowner insurance and is necessary to cover damages or injuries.
- Maintenance and Repairs: You should budget at least 1% of the home’s value annually, more for older properties.
- Finding a Tenant: Advertising costs and background checks may be necessary.
- Vacancies: If the property remains vacant between tenants, you’ll lose rental income and still need to cover the mortgage.
- Management and HOA Fees: Property managers can ease the workload but typically charge about 10% of the rent. If your home is part of an HOA, there may be additional fees.
Ultimately, deciding whether to sell or rent out your home is a personal choice. Let’s connect so you can have an expert by your side, ensuring you make an informed decision that aligns with your goals.
