Deciding Whether To Rent Or Sell Your Current Home

Jamie Carmouche October 24, 2014

Rent or Sell My Current House - Meridian Real Estate

The rent vs. sell debate is an important one to have.  There are advantages and disadvantages to each option and everyone’s circumstances vary greatly.  Some factors to consider are:

Your financial situation,

The local rental market,

State and federal income taxes,

The current and projected real estate market, and

Your tolerance for being a landlord.

Is Your Move Temporary?  If you are moving but are possibly wanting to come back to the area, renting might be a great option for you so you have a home to return to, especially since you have already paid the fees and costs associated with buying it in the first place.

Will Your House Cash Flow?  If your house will rent for enough to cover the cost of ownership (payment and repairs), renting it so that you can eventually pay it off and have an investment property might be a great option.

Need An Income Tax Write off?  When you rent your home your tax advisor may advise you to depreciate it annually, so it may make sense financially to rent instead of sell.  Consulting your accountant might be worthwhile to see if this will help you on your tax return.

Do You Need The Equity From Your Current House To Purchase Another Home?  If you need the equity you have built up in your current house to be able to afford the purchase of another home, you might need to consider selling your current house rather than renting.  It is possible to take a home equity line to pull the equity to fund another home purchase so that you can keep your current home as a rental, but make sure it is going to benefit you financially to hang on to the rental home.

Do I want to be a landlord?  Being a landlord is not for the faint of heart.  Renters do not always take care of the house like you would.  If dealing with people scuffing walls or not taking care of the landscape is going to cause you major stress, it is probably better to sell rather than rent.  You can always hire someone who does property management to help deal with the day to day issues and screening tenants, which can reduce your stress level tremendously if you decide to keep your home as a rental. The Boise rental market is ever changing.  If you need help analyzing your situation and figuring out if renting or selling your current home makes sense for you, I am happy to help.

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