After spending months and even years rehabbing a house, buyers wonder if they should rent or sell their newly remodeled home. After all, the decision is not an easy one to make as there are various benefits and drawbacks of both renting and selling your property. Moreover, it's also important that you know what you're getting into first before deciding on one of the two so you can decide what is best for your situation.
That being said, the Ironclad Property Management presents a few things to consider when deciding whether you should sell or rent your newly remodeled fixer upper.
Making a Tough Decision - Sell Quick or Become a Landlord
The first thing you need to think about is whether or not it's a good time to sell your house. In most cases, home prices fluctuate throughout the year and are usually highest in the summer. If you're in the market for selling, then it is likely that your home will fetch more buyers during the summer months. You’ll want to find out how much your home is worth and use that information to make a decision.
Turning your property into an investment property comes with its own risks and rewards, as well. On the one hand, you could save more money by renting your house out to tenants. On the other hand, there's always a chance that something might happen and you'd have to deal with tenant issues. In fact, even if everything goes smoothly for some time after renting out your home, there are still chances that things can go south if you need to make a big fix.
Landlording Isn't as Passive as Most Believe
Due to the fact that you're no longer living in your investment property, chances are high that you won't be able to instantly fix problems as they arise. To prevent and make minor repairs or even major ones, it is important that you consider hiring some help such as a property manager, landscapers, contractors, etc. for your investment property.
If, for example, you need the property’s fence fixed or replaced, you want to make sure that it’s taken care of expeditiously and professionally. Thankfully, you can easily find highly rated local fence companies online. However, you do want to take some time in ensuring that you hire someone who’s duly licensed and insured, on top of high-recommended and trusted by previous clients.
Finding a quality tenant is also something you need to work on as well. Although there are tenants who will wait for months just so they can get their preferred house, most aren't that patient and would rather go ahead and rent your property if they like it. When it comes time to screen tenants, let a professional background-screening company handle your background checks.
The Financial Implications
Selling is very enticing, especially in today's market. The cost of real estate is extremely high and buyers are often willing to give up things like inspections to secure a deal. It’s wise, therefore, to work with a real estate professional to ensure that you get the best possible ROI for your property, and quickly.
Owning rental properties is also a great option. There's a reason most of the world's wealthiest people own real estate. It can be a great investment as long as you get it at the right price and location. If you're thinking of making your first rental property, then it's important to consider the ongoing responsibilities of being a landlord.
Landlords often benefit from taking business classes so they have a better understanding of finances and marketing. If you’re interested in improving your business acumen, you can earn an online business degree. Online programs are much more flexible than taking in-person classes so you can concentrate on running your rental business.
Summing Up - Rent or Sell?
Deciding whether to sell or rent your newly renovated property may seem like a tough choice. There are various benefits and drawbacks of both renting and selling your property. Whether you choose one over the other will depend on what is best for your situation.
If you're thinking about becoming a landlord, it's important that you know what the responsibilities entail before signing up because chances are high that if something goes wrong with tenants - even minor ones - you'll be responsible for handling them yourself or paying someone to do it.
If you decide that renting your property is the right choice for you, contact the experts at Ironclad Property Management. You don’t have to do it all yourself!