If you’re moving then chances are you were planning on selling your home. While you might need the capital from a sale to purchase a new home, if you don’t, there are much better ways to go. For example, renting your home out.
While you might be moving to another city or even another state for various reasons, that doesn’t mean you have to sell. Issaquah property management companies work with long distance property owners to rent out their homes while they are away, so that they can turn a profit. Many people dream of owning a second investment home, but never get the chance to. Renting out your home instead of selling has a number of advantages, including that you own a resource, property value continues to go up, and you can potentially earn more through rentals then you would with a sale.
Benefits of Renting vs. Selling
- Renting allows you to keep your property, which is a tangible asset
- Property value goes up over time meaning that it is more valuable later
- Rental income keeps coming in, a sale is a one time profit
- Long-term yield is often much more profitable than short-term yield
- You can always move back if necessary
- A property manager means no responsibilities but collecting rent
Things to Consider
There are a couple of things to consider before you jump into renting your house out. It’s almost always a good idea to get together a list of yearly expenses such as property tax, maintenance expenses, and other estimated fees like the cost of a property manager (which is typically a small percentage of the rental income). Comparing that to your likely rental income is the best way to get a good idea of whether or not it’s worth it for you to rent out your home.
If you’re still not sure whether or not renting out your home is a better alternative to selling, then why not check out this unique\ calculator from Forbes. The calculator allows you to input the estimated sell price as well as the monthly rent price, and expenses, and then tell you how much you would earn, and whether you should sell or rent. It’s actually quite handy if you want to crunch numbers before you commit to anything.
Want to find out more about renting out your home while you move? Contact us today to talk to some of the best Issaquah property managers in the business, and to see what we can do for you.