When it comes to the decision of whether you should rent your place out or sell it, there truly isn’t a right or wrong answer, but there are definitely pros and cons to each option and only you can really know which one suits you best.
Of course, you’ll hear opinions from other people telling you which one they think is best, but ultimately it’s your decision and yours alone, so don’t allow yourself to be swayed by what other people think is best, because while their advice may be coming from the best possible place, it’s not always going to be the best thing for you since what works for one person, doesn’t necessarily work for another.
In this post, we’re going to share with you some pros and cons for each side so that you can decide if you should sell your place or rent it out.
Advantages of Selling:
More cash upfront
This is always an appealing aspect of selling a house, and it’s especially appealing if you want to move up the property ladder and invest in a new place, so if you’re looking to buy something else, then selling is probably a good option to go with.
Disadvantages of Selling:
A lot more paperwork to deal with
The downside to selling is that you’re going to have a lot in the way of paperwork to deal with, so this is something to consider, especially if you’re looking for a fast sale. Of course, there are definitely things you can do to make the sales process quicker, so it doesn’t need to be a huge issue or dealbreaker, but it’s definitely something to consider when looking at your options for selling versus renting out.
Can take longer
The sale of a property, no matter how exclusive the area or how affordable the property is simply not something that will happen overnight, and although your expectations are probably not this unrealistic, it’s worth considering if you’re looking to move on quickly with as little hassle as possible that selling may not be something that’s the best option for you right now.
You may not get what you want from the sale
Property prices are dependent on the market, and if the market isn’t currently going in your favor then you may not get what you’d hoped or expected from selling up. This can, of course, go the other way and you get more than you expected, but if you’re looking to move on quickly, then renting may be something you need to consider in the meantime if the market simply isn’t working in your favor.
Advantages of Renting out:
Recurring income
When you’re renting out, you’re receiving income on that property from the rent. Although at first, you’re not likely to make much profit since most of it will be paying your mortgage and expenses, it’s probably still allowing you to break even, and could be a potential recurring income source in the future once the mortgage is paid off.
Could be more hassle
When you’re someone’s landlord, you’re responsible for everything that needs to be done in the property, including things like any appliance repair that needs doing, and you could also end up with nightmare tenants who won’t pay their rent.