Undoubtedly, selling your property can help you obtain a substantial return on investment within a short period.
On the flip side, rental properties provide a constant positive cash flow. Currently, rental properties are the most rewarding investments.
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Even so, maintaining a rental property is not a walk in the park. It requires time, effort, and money.
Selling a home can also be risky due to fluctuating market prices. So, is it better to sell a house or rent it out?
Solving the dilemma: Should I lease or list my house?
It can be challenging to determine whether you should rent or sell your property. In this article, we discuss some things that will help you make the best decision possible.
Signs you should rent out your home:
High demand for rental properties in your area
If your area has a high demand for rental properties, consider renting out your home. It may be more beneficial than selling.
The need for housing is constantly on the rise due to the ever-increasing population. Maximize this opportunity by renting your property. But how do you know there is a high demand for rental properties in your area?
Fortunately, there is a broad spectrum of information on the internet. Websites like Apartment list can help you determine whether there is a high demand for rental properties in your area.
Also, the rent report from the apartment’s guide can help you identify the state of the rental market.
You really want to rent your property
Contrary to popular opinion, being a landlord is not easy. You’ll have to spend a lot of money maintaining your property and making sure it’s in good shape.
So, if you don’t want to become a landlord, you’d rather sell your property. Typically, some people do not like the hustle involved in taking care of rental properties.
You are not ready to let your house go
Certain circumstances may force you to leave your house or even your country. It could be due to work or sickness. In such scenarios, most people are often unwilling to sell their house. Instead, they prefer renting it out.
This way, they’ll still have their property even when they are away. It is normal to have a special attachment to your house. Renting it out can be a great way to avoid selling it.
Your house is in a good location and provides unique features
If your home stands out due to its exceptional features, avoid selling out. It can help you gain massive returns on investment. For example, if your home is close to a park or golf course, it would be best to rent it out.
Avoid selling houses in good and convenient locations. Such properties are usually in high demand, and it can be challenging to find a similar house.
Your house gives you more profit when rented
Take time to evaluate the profits you’ll make when selling and renting out a property.
Settle for what will help you gain the most profits. Let’s look at a practical example. You bought your home for $250,000. Then, you decide to rent it out and obtain a net rent of $850 monthly.
It would take you at least seven years to gain high profitability. However, if you sold the house, you would achieve massive returns within a short period. At the end of the day, it’s all about what benefits you the most.
How to know if you should sell your home
Being in a seller or monopoly market
You’ll indisputably obtain high profits when your home is in a seller’s market. In a seller’s market, consumers have very few options. Thus, suppliers raise their prices. Nonetheless, you have to make sure you use the right marketing strategies.
Having many buyers’ means that you can increase your prices and obtain maximum profitability.
Gaining fewer profits from rental properties
When there is a low demand for rental properties in your area, you may not be able to gain substantial returns by renting your home. In such instances, you are better off when you sell the property.
So, always analyze the returns of selling your home versus the profits of renting it out. From there, you can make your decision.
Having inadequate liquid cash on hand
As mentioned earlier, rental properties need a lot of maintenance. Thus, if you don’t have liquid cash at hand, it would be best to sell your property.
Otherwise, you may not be able to maintain it. Also, when you don’t have a tenant, you lose rental income. Although rental properties are the best investments, they require a lot of money.
You need urgent cash
Selling property can be a great way to have urgent cash on hand. For example, if you need to buy another valuable property, you can sell the house to top up your savings. However, ensure you understand all the risks involved in selling your property.
You don’t want to become a landlord
Some people don’t love the idea of becoming landlords. They would rather sell their property and obtain the respective profits.
Being a landlord can be overwhelming, especially if you have other businesses. Consider selling your property if you are not excited and enthusiastic about becoming a landlord.
Your home is not a good rental property
Not all properties are good for renting. Some houses incorporate more expenses than income. So, it would be best to sell them. For example, homes located in insecure areas can cost you much more than you think.
You would rather sell the property and buy another one that looks more promising. Work with a reliable real estate agent to avoid making the mistake of purchasing a bad rental.
How do I sell my house ASAP?
Properties put up for sale should not stay on the market for more than three months. The longer your property stays on sale, the less its market price.
Below are a few tips that can help you sell your house faster.
Keep it clean:
You undoubtedly have to keep your property clean so that you can sell it quickly. Remember, most buyers will want to see the property before purchase. So, ensure the place is clean and organized.
Choose a suitable selling strategy:
Currently, there is a broad spectrum of techniques to help you sell your property fast. For instance, you can hire a professional realtor who can help you find a buyer ASAP.
Attractive pricing:
Set realistic prices when selling your home. First, evaluate the true value of the house and your anticipated returns. Then, set a selling price that will attract a large population.
Conduct all repairs/replacements:
It is essential to fix all repairs in your home to attract potential buyers. Generally, the whole house should be in good shape. Replace any old lighting fixtures and door handles.
Employ a professional photographer:
You have to take good pictures of your house for marketing. A quality picture can easily captivate attention. Additionally, consider getting a videographer to capture all the details of the house. Once your target population sees these videos, they won’t think twice about purchasing your property.
Be accommodative:
As a property owner, you have to be flexible if you want your property to sell quickly. Be ready to take your clients on a house tour during their preferred timings. Keep in mind that no one will purchase your home if you don’t have time to show them around.
How do I get a tenant for my house ASAP?
Take quality pictures:
One of the best ways to get a tenant for your house ASAP is by taking quality photos. Hire a professional photographer to capture all sections of the house. Then, post the pictures for marketing.
Detailed Listings:
It is always advisable to come up with a detailed list that describes all the house features. Be as specific as you can when you do this. Subsequently, you’ll get a tenant within a short period.
Highlight unique features:
Take advantage of the special features of your house since they serve as a strong selling point.
For example, if your home stands out since it has a swimming pool or large backyard, make sure you let your target population know about this.
Upgrade appliances:
Ensure that all your household appliances are up to date. Otherwise, they would turn off clients. If you are renting out an Airbnb property, make sure the refrigerator, furniture and kitchen equipment are modern.
Offer discounted prices:
A good percentage of tenants get attracted to discounted prices. You can provide discounted prices for the first three months. Consequently, you’ll be able to get tenants ASAP.
Rent or buy a home, which one wins?
Both renting and selling a house can help you obtain high profitability. However, you have to examine whether it is better to sell the house or rent it out.
Typically, some properties will work better as rentals, while some will gain higher returns when sold. If you decide to sell your house, ensure you choose a reliable marketing strategy to get a buyer ASAP.
Also, incorporate an effective marketing strategy to get a tenant for your rental property quickly.