Should I Sell or Rent My House?

Should I Sell or Rent My House? | New Home Gurus

Moving out of your house raises a lot of questions. One of those can be whether you should list your house or keep it as a rental.

The best move for you will depend on your situation, needs, and goals. To help you dial those in, here’s a clear, practical guide that breaks down when it’s generally better to sell a house versus keep it and rent it out.

5 Signs You Should Rent (Not Sell) for Now

Renting out a house, instead of selling it, can be some work, but it can generate income. That may be a great situation for you IF:

  1. You still love the house or have a personal attachment to it: If you’re sentimental about the house and you’re simply not ready to get rid of it, turning it into a rental property can be an excellent solution. This may be the case for houses that have been in the family for generations or even homes that you’ve personally built, renovated, or grew up in.
  2. The house would be appealing to renters: Does the home have unique, attractive amenities? Is it in pretty good condition? If so, it could be a hot rental with the potential to generate some healthy passive income for you.
  3. There’s decent to high rental demand in the area: Is the house in a popular neighborhood or a growing suburb? Is it next to top schools, growing business districts, or major highways for commuters? Location can be everything for renters, with homes in popular areas being nice options for young professionals, families, and even retirees who want more space than, say, a high-rise may offer.
  4. You want and have time for a rental property: Having rentals takes TIME. You need to screen renters, prep the house for renters, clean up after they move out, and keep the house maintained. If you want to do that, you have time for all that, OR you have the resources to hire a property management company to do that for you, then keeping the house as a rental can be a smart move.
  5. You can make enough money using your home as a rental: Can you get a renter to pay you enough to cover the monthly mortgage and/or other expenses it takes to keep the rental? If you’re not going to lose money renting your home (and, better yet, if you can make money with the rental), again, this can be the better move, as opposed to selling now.

5 Signs Now Is the Right Time to List & Sell Your House

Putting your house on the market may mean you get the cash for selling it while you get to cut ties with the home altogether. This can be the right move for you IF:

  1. The house wouldn’t make a great rental: Is the house run down? Is it in a less popular or more remote area? Would you need to put a lot of money into the house to make it “renter friendly”? If so, listing the house is likely a better move then trying to rent it out.
  2. You don’t want to be a landlord: Managing a rental property will take time and energy. From finding renters and collecting rent payments to maintaining the house and more, there’s a lot to do as a landlord — and if you simply don’t want that extra job, then strongly consider selling the home, rather than keeping it.
  3. You stand to make a nice profit from selling: If you’re in a seller’s market and homes in your area are going for crazy-high prices, striking while the iron’s hot can make for a nice payday. You may even sell your house for a lot more than would be possible in a buyer’s market.
  4. You can’t make money renting the house: If you can’t charge enough in rent to cover the costs of keeping the house, it just doesn’t make financial sense to try to rent it out. In fact, doing so could end up costing you a lot of money later.
  5. You can’t afford a vacancy: If you’re going to have a rental, you have to expect that, at one point or another, you’re not going to have a renter living it in. When that happens, can you afford to keep the property vacant? If so, for how long? You need to seriously consider these possibilities because they could become a real nightmare for you if you make the mistake of keeping the house as a rental when you can’t really afford a month or more of vacancy.

Rent vs. Sell Your House: The Bottom Line

When it comes to renting versus selling a house right now, the truth is that:

  • This is a complex decision, and it’s important to consider several factors if you want to make a choice that will pay off in the long run.
  • You may not have all of the answers you need, and you don’t have to make this decision alone. Talking to an experienced Realtor® can help, especially when you need insights about the current housing and rental markets, listing prices, and more.

Selling a Home in Texas? Work with 5-Star Realtors® & Get Cash Back at Closing

If you’re selling a home in Texas, you can get experienced help and cash back at closing when you work with the 5-star Realtors® at New Home Gurus. We can guide you through the process, helping you with offers, negotiations, and closing. Plus, we’ll split our commission with you at closing!

Home sellers who work with New Home Gurus can get back an average of $4,500 to $12,000 at closing.

How Much Cash Can You Get after Closing?

Call (281) 668-8124 or Contact Us to Find Out Now

We are standing by, ready to answer your questions and explain the details of our commission-sharing program. 

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