When you’re ready to move, deciding whether to sell your home or rent it out is a significant choice. Today, more homeowners are considering the option of renting their home instead of selling it outright.

Recent data from Zillow reveals a growing trend: two-thirds (66%) of sellers thought about renting their home before listing it for sale, with nearly a third (28%) seriously considering it. That’s a significant increase from 2021 when fewer than half (47%) of homeowners explored this possibility.

So, how do you decide between selling your home to fund your next move or keeping it as a rental property to build long-term wealth? Let’s break it down with some key questions to help guide your decision.

Is Your House a Good Fit for Renting?

Not every home is ideal for renting. Here are a few things to consider:

• If you’re moving far away, managing your property from a distance could be challenging.

• Is your neighborhood attractive to renters? Proximity to schools, shopping, or public transportation matters.

• Does the property need major repairs or renovations to meet rental standards?

If managing a rental property seems like too much work or your home isn't in a rental-friendly location, selling may be the better option.

Are You Ready to Be a Landlord?

Being a landlord comes with responsibilities that extend beyond collecting rent. You'll need to:

• Handle maintenance requests at all hours.

• Manage tenant turnover, including repairs and deep cleaning.

• Be prepared for financial risks like late rent payments or property damage.

As Redfin notes: “Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don't have a few thousand dollars on hand to take care of these repairs, you could end up in a bind.”

If these realities seem daunting, selling your home might be the simpler and more stress-free choice.

Do You Understand the Costs?

Renting can provide passive income, but it also comes with significant expenses. Here’s what you need to factor in:

• Mortgage & Taxes: Even if your rent doesn’t cover the full mortgage, you’ll still owe the difference.

• Insurance: Landlord insurance can cost about 25% more than regular home insurance.

• Maintenance: Budget at least 1% of your home’s value annually for upkeep, or more if the property is older.

• Vacancies: Periods without tenants mean covering the mortgage out of pocket.

• Property Management: Hiring a manager can help, but it typically costs around 10% of the rent.

• HOA Fees: If your home is in a community with an HOA, additional fees may apply.

Deciding whether to sell your home or rent it out depends on your financial goals, lifestyle, and the property itself.

Expert Support to Help You Decide

Dee McDonough, owner of S&D Real Estate, emphasizes: “Your home is one of your biggest investments, and the decision to sell or rent it out should align with your goals and circumstances. At S&D Real Estate, we’re committed to helping you navigate this process with confidence and clarity.”

S&D Real Estate Property Management is a dedicated division of S&D Real Estate, offering expert services to those who choose to rent out their property. If you decide to keep your home as a rental, our team provides comprehensive support, including tenant screening, lease management, maintenance coordination, and financial reporting. With S&D Real Estate Property Management, your investment is handled with professionalism and care, simplifying the rental process and maximizing your property’s value. Let us help you navigate this decision with confidence and peace of mind.

Let’s connect to discuss the best options for you and your future! Contact us at (863) 824-7169 or email agentcare@sanddrealestate.com.