Should I Rent or Sell My House?

You can’t live in your house anymore. Whether you’re moving or you’ve just outgrown it, you know that you need to do something with your old property. But should you rent it out or sell it?

Everyone can see the allure of owning a rental property. It’s investment income. It’s property value. But it’s also a lot of work. Let’s take a deeper look into the common question: Should I rent or sell my Birmingham house?

Should You Rent Your House?

Renting a house is essentially like starting a very small, niche business. Your house is your business. You need to keep a renter in it at all times, or you’re probably going to lose money. You will need to keep it well maintained, or you could be breaking the law. If your home is mostly paid off or has a very low mortgage, you may make money. But you usually aren’t going to make money within the first few years.

Many fortunes have been made on home rentals. But usually when the person involved can own dozens of rentals, not just one. While you can hire a property management company to manage your rental, this is usually hard to do if you only have a few, and it cuts into your profits. Renting a house and being a landlord can be a good way to manage your money, but it’s also a lot of work.

The bottom line is that you should rent your house only under a few conditions: 

• If you believe your home is going to increase sharply in value.
• If you can comfortably pay for your home even if you cannot rent it out.
• If you believe you can be a good landlord.

Should You Sell Your House?

Selling your house gives you a fast influx of cash that you can use on another property. A lot of people fold their old house into a brand new house so they’ll be able to get a bigger one. Selling a house is a clean break, but many people hesitate because they worry it will need to undergo repairs and renovations. However, you can sell a house without repairs by selling to a cash home buyer in Birmingham — but you’ll need to do those repairs if you’re renting out your property.

If you don’t want to be a landlord, maintain your property, or manage it on your own, selling your house is ideal. If you couldn’t last six months without any rental income (such as you would need to during an eviction process), you should sell your house rather than rent it. And also consider the fact that you would likely need to do major repairs on things like the roof or the HVAC system if you were renting out your home.

Of course, if you can’t get a lot of value for your house, it could make sense to hold it rather than selling it. But if you’re interested in getting a big cash payment or buying another house, selling it usually makes the most sense.

The bottom line is that you should sell your house:

• If you could use the cash from the house now, potentially toward a better investment.
• If you’re worried that you might not have what it takes to be a landlord.
• If you’re moving away and won’t be able to manage the property.
• If you would not be able to cover the cost of a renter not paying the rent.

Selling a house is almost always better, especially if the house needs repairs. But it’s always worth it to explore your options. If you want to know how much your house is worth, we’d be happy to schedule a walkthrough at your convenience. We’re the people to call to sell your house for cash in Birmingham. Contact We Buy Houses Birmingham today to find out more.