Is it better to try to sell a home or rent it?
Due to the current poor real estate market, do you think it's better to try to sell a home, or rent it out through a property management agency until the real estate market improves for sellers?
This is a difficult question given the current RE market. Many people think that renting is best, however, they fail to look at the tax and insurance ramifications of doing this, as well as the "usage" factor, problem renters, potential damage, etc. Management companies are not a good idea as they really don't care about anything except what you are willing to pay them. It's cheaper and better to rent your own place, as long as you live nearby. If you are moving to another city or state, it would be best to pay a friend or relative to take care of your place for you.
We have our house rented as rentals are hot in our area. If you have a rentable house and can recognize some dollars from it ..it is worth it. And it depends on what your needs are.
This is a hard question to answer and it depends on quite a few things
1. Your renting market
2. Your buying/selling market
3. Do you have the budget to cover repairs
4. Do you have the time to deal with renters?
The list goes on. I personally wouldn't hire a property manager I'd rent it out myself (more money for me)
I'd sell it on a rent to own basis collecting a non refundable deposit (use that deposit to fix any repairs as they come)
I'd have my contract state that the rent to own buyer is responsible for x amount of repairs up to a certain amount. This keeps the buyer in line and you know the home will be better taken care of than it would with a regular tenant.
Plus it makes it easier to rent out again (if the original buyer backed out of the deal)
In the long run you will always make more money renting the home out than you would selling it.
I have 4 homes that I rent out and I've only had to come out of pocket once for a repair and that's because I split the cost with the rent to own buyer.
I set up my contracts (with help of course) so that I don't have to be a 24/hr land lord
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