To Rent Or Sell Your Vacant Home
Have you ever thought whether it would be better to rent or sell a vacant home that you own? Maybe you already have someone renting this house, or you have been considering renting it to tenants, but would that really be the better choice?
Deciding whether or not to sell or rent your vacant home is an incredibly big decision that requires a lot of thought. Therefore, you should always look at the pros and cons of selling or renting your home.
The Pros of Selling
One of the biggest benefits of selling instead of renting is, you guessed it, the money. Even though you would be getting income each month from your tenants, whether it's for rent solely or both rent and utilities, you will also have to spend on repairs, new appliances if anything breaks and anything else that goes wrong.
This can get incredibly costly, and there's no real way to plan your budget when you do not know what could happen.
Another large pro is freeing up equity and rolling over so you can apply such funds to your next home, or put all of that money away into your savings. Should your neighborhood drop in value, selling quickly will ensure that you get a fair chunk of cash before the value falls.
If your home qualifies, you can even get a capital gain that is tax-free, where you would not if you decided to rent the home out. Utilities can be quite expensive, especially if you are not charging your tenants for them, and they receive sky-high utility bills.
Tenants can be difficult to deal with, especially if you come around saying that they need to use less water and stop keeping all of the lights on.
It could also start an issue if you, for whatever reason, have to add utilities to their rent, and they make a scene about it. By selling your vacant home, you won't have to deal with tenants or utilities, period!
You will no longer have to worry about squatters, or tenants completely wrecking the place and making the value of the home plummet to the point where you're spending thousands of dollars trying to fix it and make it a home again. Plus, you will save hundreds of dollars per year when it comes to maintenance that you will no longer have to do anymore, which will also help to give you a peace of mind.
If you have already bought another home, you will no longer have to worry about keeping up with two mortgages, which will save you time, money, and a ton of stress. Why yank your hair out over both homes, when you can just sell your vacant one? The answer is simple; just sell it and move on.
The Cons of Selling
The only major con when it comes to selling your vacant home is that it could be difficult for you emotionally, if you have memories tied to the home. Perhaps you bought a new home and are keeping your old one for whatever personal reasons you may have.
Another con is the process of selling, but that can be easily be dealt with by taking on an experienced, reputable real estate agent who knows how to sell homes quickly, especially in a declining value neighborhood.
Though the process may take some extra time, and it can be very stressful, the real estate agent can help you identify a selling price, do all of the showings with potential buyers, work with buyers during the negotiation process, and even finalize and close the deal for you once all of the proper documents have been signed.
For more on the topic, including the pros and cons of renting your vacant home, you can read my blog in its entirety here.
If you'd like to chat in person, you can schedule an appointment here.
Chris is a dedicated professional interested in providing the best service to his clients. Energy, knowledge, and timeliness are just some of the strengths he will leverage to provide you with the bes....