Leave a Message

Thank you for your message. We will be in touch with you shortly.

Should You Rent Out or Sell Your House?

Oriana Suarez August 16, 2024

Sellers

Rental Townhome in New Jersey

Figuring out what to do with your house when you're ready to move can be a big decision. Should you sell it and use the money for your next adventure, or keep it as a rental to build long-term wealth?

It's a question many homeowners face, and the answer isn't always straightforward. Whether you're curious about the potential income from renting or worried about the responsibilities of being a landlord, there’s a lot to consider.

Let’s walk through some key questions to ask to help you make the best decision for your situation.

Is Your House a Good Fit for Renting?

Even if you're interested in becoming a landlord, your current house might not be ideal for renting. Maybe you're moving far away, so keeping up with the ongoing maintenance would be a hassle, the neighborhood isn't great for rentals, or the house needs significant repairs before you could rent it out.

If any of this sounds like it might apply, selling might be your best option.

Are You Ready for the Realities of Being a Landlord?

Managing a rental property isn't just about collecting rent checks. It's a time-consuming and sometimes challenging job.

For example, you may get calls from tenants at all hours of the day with maintenance requests. Or you may find a tenant causes damage you have to repair before the next lease starts. You may even have to deal with people falling behind on payments or breaking their lease early. Investopedia highlights:

"It isn’t difficult to find horror stories of landlords troubled with more headaches than profits. Before deciding to rent, consider talking to other landlords and doing a detailed cost analysis. You might find that selling your home is a better financial decision and less stressful.”

Do You Have a Good Understanding of What It’ll Cost?

If you're thinking about renting out your home primarily to generate extra income, remember that there are additional costs you’ll want to plan for. As an article from Bankrate explains:

  • Mortgage and Property Taxes: You still need to pay these expenses, even if the rent doesn't cover all of it.
  • Insurance: Landlord insurance costs about 25% more than regular home insurance, and it's necessary to cover damages and injuries.
  • Maintenance and Repairs: Plan to spend at least 1% of the home's value annually, more if the home is older.
  • Finding a Tenant: This involves advertising costs and potentially paying for background checks.
  • Vacancies: If the property sits empty between tenants, you'll lose rental income.
  • Management and HOA Fees: A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.

Bottom Line

To sum it all up, selling or renting out your home is a personal decision that depends on your circumstances. Whatever you decide, taking the time to evaluate your options will help you make the best choice for your future.

At Florostone Realty, we're here to assist you every step of the way. Whether you choose to rent, lease, or sell your property, we handle the entire process for you. Contact us today to explore your options and make an informed decision with expert guidance and support.

FREE CONSULTATION

Recent Blog Posts

Stay up to date on the latest real estate trends.

Sellers

Should You Get a Pre-Listing Inspection Before Selling Your New Jersey Home?

March 15, 2025

Learn why a pre-listing inspection may be the smartest move before putting your house on the market!

Buyers

Breaking Into the New Jersey Market: Smart Moves for First-Time Buyers

March 1, 2025

Learn how to navigate high prices, expand your search area, and leverage local knowledge to find the perfect first home.

Tips

How New Agents Can Attract Clients and Build a Thriving Business

February 24, 2025

Starting out in real estate can be overwhelming, but with the right strategies, new agents can quickly grow their client base.

Sellers

If Your House’s Price Isn’t Compelling, It’s Not Selling

February 15, 2025

Overpricing can lead to fewer showings, longer days on the market, and buyers questioning what’s wrong with the property.

Buyers

3 Reasons To Buy a Home Before Spring

February 1, 2025

Buying a home before spring offers distinct advantages, including less competition from other buyers, increased negotiating power, and the chance to lock in lower home… Read more

Sellers

How Eco-Friendly Features Can Boost Your Home’s Value

January 15, 2025

From energy-efficient appliances and insulation to solar panels and landscaping, these upgrades can enhance your home's appeal, reduce energy costs, and boost its valu… Read more

Tips

5 Essential Habits for New Realtors to Build a Thriving Career

January 15, 2025

Starting in real estate can feel overwhelming, but building the right habits early on can set the foundation for long-term success.

Buyers

The Biggest Perks of Buying a Home This Winter

January 1, 2025

Winter can be a great time to buy a home. With less buyer competition, more motivated sellers, and typically lower home prices, the season offers unique advantages

Tips

Mastering Body Language: The Key to Real Estate Success

December 29, 2024

First impressions matter—and so does every gesture after that. Learn how to use body language to build trust and close more deals.

LET’S CONNECT

We strive to become your go-to Real Estate Advisors. Book a free consultation today and let’s get started with a buying or selling plan for your home customized to your unique timeline.