Many homeowners call us not knowing whether they should sell or rent out their home. They usually say that yes, they could sell now. Yes, they really want to get rid of the home. But then a friend, a colleague, or a family member tells them that they should hold onto it a few more years to make more money.
We have these conversations many times a day and the final decision often depends on the homeowners personality type.
When to Sell
Our homeowners that are more emotional should sell their home. Turn over the keys at settlement, say good luck to the buyer and walk away. It is easier for them to just close this chapter and move on. These homeowners are usually more emotionally attached to their homes, as in they have many positive memories, they have cared for the home beautifully and have really great neighbors that have become friends. This emotional attachment to the home makes it very hard for them to be an unemotional landlord. Meaning, these homeowners get upset when there is a repair on the rental property, when the tenant has stained the carpet, broken the HOA rules or gotten into an argument with a neighbor.
When to Rent
Being a landlord requires an unemotional attachment to the home. It is no longer your home, it is a rental property. Repairs are inconveniences but can be tax deductions. A non-paying tenant is annoying but it is not personal. Being a landlord is all about cash flow and the numbers - it's not personal, just business.
So my advice would be to know yourself. Imagine how you will feel when we call you with a repair expense or a landlord/tenant issue. If you see yourself getting upset and agitated, let's look at the numbers to try to sell. Selling allows you to maintain your positive memories of the home, cut your ties and move on. If you imagine yourself calmly running your numbers and checking your cash flow, great! Let's talk about renting out your home.
As always, every homeowner and every situation is unique. We will help you decide what the best decision is for you. It may not be the right decision for your friend/colleague or family member, but it will be right for you and that is our main priority.