The decision to rent out your home or to sell it is one that will surely come with a lot of consideration. On one hand, renting out your home could provide you with some extra income while you wait for the perfect time to sell. But you also might be in a real bind and selling your home could give you the money you need right away, especially if you sell your house quickly, as-is and for all cash, to us here at Osborne Homes.
We get a lot of people asking us, “should I sell my house or rent it out?” So, which is the right answer for you? In this blog post, we’ll go over everything you need to know when you’re faced with renting vs selling a California home so that you can make an informed decision. Keep reading for more information!
Who might be asking, “is it better to rent or sell?”
There are a myriad of situations that any given homeowner could find themselves in that might have them at a crossroads, needing to make a big change and decide what to do with their current home. Here are a few scenarios:
A California homeowner who is facing foreclosure.
If you’re so behind on your mortgage that you’re getting close to foreclosure action, renting out your home could be a way to prevent foreclosure from happening. But in this position you are also a great candidate to sell your home fast to us here at Osborne Homes. We have helped hundreds prevent financial havoc by quickly taking their property off their hands, as-is, and for all cash.
A homeowner that’s moving out of the area.
Renting vs selling can be a hard decision, but selling would be the best option if you need the money from the sale to fund your move. However, if you have time before you move, renting out your home could be a great way to make some extra money. Just be sure to factor in all of the costs and risks involved so you can make the best decision for your situation.
A homeowner who can’t afford to keep up with the maintenance.
This one is pretty obvious. If you can’t afford to keep up with the maintenance on the house, and maybe there are some major repairs looming, you certainly don’t have funds for getting it in rentable condition or even in a state to sell in a traditional sale. So, definitely another great candidate for a sale to Osborne. Be sure and read up on what repairs to do before selling a house.
Someone who inherited property that they don’t want.
If you’ve inherited property that you aren’t going to use and that you don’t plan to pass on to your own family, you could go either way with this one. It depends on where you are financially. If you aren’t hurting financially and can manage to fix the place up and rent it out, it could be a sweet little investment property. On the other hand, if you are sweating the new responsibility and would rather just get rid of it and pocket the cash, give us a call so we can tell you what fair price we can give you.
These are just a few of the many possible situations homeowners might be in where they must weigh the pros and cons of selling their home or renting it out. If you need to know how to rent out a house or are just unsure what to do, contact us and we will help you go over all of your options and help you make an informed decision that will benefit you and your family for years to come.
Before you decide to rent your home out, consider this…
Renting your house out can be a great way to make extra money. It might also afford you some time to get some repairs done before you eventually put it on the market. Plus, there are tax benefits for rental property owners, such as being able to write of interest, repairs, property management and HOA dues. However, there are some things you need to consider before renting your house out.
Eight things to consider when deciding if you should lease out your home:
- You’ll want to talk to a real estate agent about the rental market in your area. Your mortgage to rental value might not make sense so this could quickly answer the renting vs selling dilemma.
- Leasing out your old home can affect the purchase of your next one because you will likely qualify for a lot less if you need to finance it. Talk to a lender to find out how this affects you.
- Understand how losing out on primary home capital gains could affect you. If you end up leasing your home for over 3 years you will lose a tax exception of up to $250,000 per person, or up to $500,000 for a married couple.
- Be realistic about your monthly cash flow. A rental might put you in the negative. Because, don’t forget, you will need cash reserves to handle inevitable repairs, maintenance, vacancies and potential evictions.
- Once you have renters in place it won’t be quick and easy to sell if you need to. It can be an obstacle and you will want to know how to sell a home with tenants currently occupying your home.
- Know that your renters will cause wear and tear to your property. Damage from renters can be costly and time-consuming to repair. That’s why it’s important to be really sure about your decision when it comes to renting vs. selling your home.
- Consider whether you want to manage the property yourself or hire a property management company. And understand that it will either cost you time doing it yourself, or money hiring someone else to do it.
- Be prepared for the possibility of problem tenants. Tenants who don’t pay rent, pay late, or who damage your property are a financial liability; they are troublesome tenants that may be disruptive, messy, or complain excessively. It can get tiresome and you’ll want to know how to get rid of them. If you wonder if you should rent vs sell a house, this one might answer it for you.
Hopefully this information gave you an idea of the risks you’ll need to be aware of with renting out your house. But if you’re still asking, “should I sell my house or rent it out?” just be sure you think it through completely before getting yourself in too deep and landing in a situation that may be more of a problem than a solution. Because, as you can see, renting your home out is not as easy as it might initially seem.
How to rent out a house
If you have weighed all your options and you decide that renting is the way to go, here is what you’ll need to do:
- First, make sure your house is ready to rent by doing some cleaning and repairs.
- Next, list your house on a rental site like Airbnb or VRBO.
- Finally, market your house well and screen potential tenants carefully.
It can be a pain to make your house more appealing to potential renters, but you will need to in order to increase the chances that it will be rented out in a timely manner. In fact, before you go through any of this hassle, it might be worth it to just give us a call so we can show how much easier it is to sell your home as-is to us. You might find it a relief to hear.
Renting a home is work. Here is how to sell your home – and fast.
If you are frustrated and overwhelmed at the thought of having to rent or sell a house, we really feel for you. We understand how defeating it is to have a mountain before you while feeling exhausted before you even take the first step. That’s why we love what we do here at Osborne Homes. We offer a solution to homeowners that makes their life easier. You can sell your home to us in as-is condition, receive all cash for it and close fast. It’s a win-win – you get out from under the burden and we happily take it off your hands.
Advantages to selling your home in as-is condition:
No need to make any repairs – while you might want to sell, you may not have the funds or the time to tackle the necessary repairs in order to make a sale happen. For those in a tough financial situation, selling as-is to Osborne Homes becomes the answer they’ve been seeking.
It can be a cash-only sale – many times home owners will sell as-is in order to attract cash buyers. They know that local investors like Osborne take homes in any condition and have cash on hand to pay a fair price.
The home will sell quickly – Making repairs, hiring a real estate agent, staging the home and waiting for buyers may just take far more time than a seller has. There is no faster way to sell your home than to make it an ‘as-is’ sale to Osborne Homes.
Osborne Homes is ready to step up as your all-cash buyer.
No more questioning when to rent vs sell a house. We are the best cash home buyer in California and we make selling your home quick and easy. We’ve made it happen for over 1,800 California homeowners and we can make it happen for you. We will assign you your very own purchasing agent who will be your single point of contact and will walk you through every step of the sale. We do all of the legal work to get your home sold and hand you cash at the end of the process. We are problem solvers. No listing your home on the MLS. No lowball offers. No repairs needed. We buy houses all over California and we hope yours is next. Contact us today!
