Should You Rent Out or Sell Your House When You Have to Relocate?

Moving is always a big decision, but it can be especially stressful if you have to relocate for work or family reasons and you’re unsure what to do with your house. Should you rent it out or sell it? There is no one-size-fits-all answer, but here are a few things to consider that can help you make the best decision for your situation.

Understanding Your Financial Situation

First, you need to take a close look at your finances. Can you afford to keep your house and rent it out? Will you be able to cover the mortgage, property taxes, insurance, and maintenance costs? If you’re not sure, it’s a good idea to talk to a financial advisor or mortgage lender.

Next, you need to consider the potential income you could generate from renting out your house. How much rent could you charge? Will it be enough to cover your costs? You should also factor in the cost of finding and screening tenants.

Pros and Cons of Renting Out Your House

There are both pros and cons to renting out your house.

Pros:

You can generate income from your property. This can help you offset the cost of your mortgage and other expenses.
You can build equity in your home. Even if you don’t make a profit on the rent, you’ll still be building equity in your home, which can be a valuable asset in the future.
You can have a place to stay when you visit. If you think you might want to move back to your house in the future, renting it out can be a good way to keep it in good condition and have a place to stay when you visit.

Cons:

You’ll have to manage the property. This includes finding and screening tenants, collecting rent, and making repairs.
You could lose money on the property. If you’re not able to rent out your house for enough money to cover your costs, you could end up losing money.
You could have problems with tenants. Tenants can be unpredictable, and you could have problems with them paying rent on time, damaging the property, or breaking the lease.

Pros and Cons of Selling Your House

Selling your house can also be a good option, depending on your circumstances.

Pros:

You can get cash for your property. This can be a good way to get out of debt or invest in something else.
You won’t have to worry about managing the property. This can be a big relief, especially if you live far away from the property.
You can move on with your life. Selling your house can give you the opportunity to start fresh in a new place.

Cons:

You could lose money on the sale. If you sell your house for less than you owe on the mortgage, you could end up losing money.
You’ll have to pay closing costs. Closing costs can be expensive, so it’s important to factor them into your decision.
You could miss out on future appreciation. If the value of your house goes up, you could miss out on the potential profit if you sell.

Ultimately, the decision of whether to rent out or sell your house is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances. If you’re not sure what to do, it’s a good idea to talk to a real estate agent. They can help you evaluate your options and make the best decision for your situation.