Thinking about selling or renting out your home soon? If you are thinking about whether you should sell or rent your home, you need to determine which option is best for you, and taking these steps can inform your decision. 
Check Out Local Home Prices 
If you are still trying to decide whether selling or renting out your home makes more sense for your finances, researching real estate prices can be a good place to start. Also, pay attention to how long local properties have been on the market and whether sold properties have gone for more or less than the listing prices. Both of these bits of information can determine whether your local real estate market is a buyers or sellers market, which can, in turn, inform your decision to rent or sell. In a buyers market, you may end up getting less than your asking price, but in a sellers market, you may get more and you may be able to sell your home a lot faster. When it comes to selling your home, you can avoid expensive realtor fees by listing your home with Prepaid and Pay as You Go listing plans are available. 
Research Potential Rental Costs 
Aside from housing prices, property maintenance costs should factor into your decision to either rent out or sell your property. Many homeowners fail to think about these costs, but this mistake can eat into your rental profits. Average maintenance costs can land you with thousands in added expenses (around $2,200 per year, according to Real Property Management), but emergency repairs can add even more to your rental costs. Of course, it can also be helpful to think about which expenses can be deducted from your taxes as a landlord when weighing the financial risks and benefits of owning a long-term rental home. 
Complete Maintenance and Repairs 
Speaking of maintenance and repairs, whether you sell or rent out your home you will want to take care of any needed improvement or maintenance projects ASAP. If you want to save some time, you can DIY many home repairs, but more involved projects may require you to hire a licensed contractor. This can be especially tricky with COVID-19 concerns and restrictions still in place but you can use a few measures to safely hire contractors to work on your home. Start by asking local contractors what steps they are taking to keep their job sites protected, but also take matters into your own hands by asking contractors to wear protective gear. 
If you’re renting out your home long-term, a cash-out refinance can help pay for necessary repairs. This mortgage can replace your current mortgage at improved terms, and you can pocket the difference in cash which can help pay for repairs. To learn more about whether a refinance is the best option for your particular situation, review this guide from PennyMac. 
Interview Property Managers 
Managing a rental can be more complicated and stressful than you would think. In addition to dealing with maintenance issues and rental collections, you will also need to market your home to potential renters if you choose to self-manage your long-term rental. This can be especially difficult with COVID-19 rules and restrictions in place, so consider saving yourself some time and hassle by hiring a property manager. An experienced property manager will know how to market your home effectively and safely to provide more ROI. 
Review COVID-19 Cleaning Tips 
Whether you are selling or renting out a home, you should always clean it before moving out. A deep cleaning will help your home stand out to potential renters and buyers, but cleaning can also help to prevent the spread of germs and disease. If you plan on moving in the next few weeks and months, cleaning for COVID-19 can be especially crucial for reducing the risk of this disease spreading to other people and through your community. Only use recommended cleaners to ensure that surfaces are properly disinfected. If you are in doubt about your own cleaning skills, consider whether hiring a cleaning service will be a smart choice for your home. 
Deciding whether you should sell your home or rent it out as a residential property can be a tedious task. The tips and information provided above should make the process easier and help you choose the option that will be most profitable and practical.

Article provided by Ted James of
Photo Credit: Rawpixel 
Published on 09/08/20
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