A common dilemma that Columbus property owners often face while moving to a new place is whether to sell their current home for immediate returns or rent it for a relatively lesser, but consistent income. So, which one is the right option? Do you rent it or sell it?
The answer is not a simple yes or no and it differs from homeowner to homeowner. There are several factors that affect your decision, such as age, your short- and long-term goals, other investment plans, and potential upcoming expenses. Here, we take a look at these factors to help you make an informed decision.
Financial assets and liabilities
As you are moving out of your home to a new place, do you have enough funds to cover your expenses and then some, without having to sell your current home? If yes, you can think of keeping it as an investment property. On the other hand, if you need the money to cover your new investment, the answer would be to sell your current house.
Owning an investment rental has become a privilege in today's day and age, so do not rush into selling it off unless there is no other alternative.
According to Zillow, the median cost of a home in Columbus has increased by approximately 15% as compared to last year. This means that the value of your asset may potentially keep increasing in the future and you may be able to sell it at a better price.
In the meantime, you can rent your home and hire a property manager to look after the day-to-day activities for your investment rental.
Emotional Attachment to the Current Property
At this stage, you are essentially thinking of selling the house that you, till recently, called home. If you are emotionally attached to the property and have a lot of memories of that place, you may have a hard time selling it. In such a scenario, you may want to consider renting it out, if you don’t want to let go of it completely.
Having said that, remember that your tenants will probably not have the same level of emotional attachment to the house and they may not take as good care of it as you did. When you turn your home into an investment rental, you have to be prepared to see some decline in the upkeep.
On the other hand, if you do not have any significant emotional attachment to the house, you can go ahead and sign a good deal that comes your way.
The Challenges of Renting - Are you ready to be a landlord?
As an investment rental owner, you need to take care of many things. You need to go through the tedious process of finding a suitable tenant, do the paperwork, resolve their problems, and provide periodic maintenance and repairs. In addition, you need to be consistently following-up with the tenant for the monthly rent.
If life as a landlord is not your cup of tea, a better approach would be to sell your home.
If you are willing to take up these responsibilities, you can consider renting your Columbus home. From a purely financial perspective, rents in Ohio are increasing at about 4% each year and the demand for rented homes is higher than the supply, which makes the decision of selling or renting very difficult.
Alternatively, you can hire a property manager to handle these activities on your behalf.
Property managers keep daily track of the Columbus real estate scenario. They are aware of the ups and downs in the market and are familiar with local trends. If you plan to rent your home, they can take care of all the tenant and property-related responsibilities, relieving your stress of property management.
Solutions for Real Estate understands that choosing whether to sell or rent your Columbus home is an important decision. Contact our expert team of real estate and property management professionals for any questions you may have. We are more than happy to help.