There are risks and benefits to renting your property instead of selling it. Weighing the pros and cons of each option will help you come to a decision that’s right for you and your financial goals.
Renting – Risks and BenefitsThe risks of having a Raleigh rental property center on putting the wrong tenant in your property. You might get a tenant who doesn’t pay rent on time or trashes the house and leaves you with expensive repairs. There are many opportunities to lose money somehow when you place a bad tenant in your rental. They might constantly break the law, and you might run into some legal liability of your own.
Another common concern is that you won’t find a good tenant in time, and your house will remain vacant. That means no income, and you’ll lose money. This is why it’s important to hire the right property manager who can effectively mitigate all those risks. As long as your price is right and the condition of the home is great, you’ll be able to find a good tenant in a reasonable amount of time.
Legal compliance is another area of concern for people who are considering renting out their home. There are a number of state, local, and federal laws that govern rental housing, and they are always changing. Breaking a law can be costly for you, so make sure you educate yourself or work with a property manager who can protect you from liability and lawsuits.
The benefits of having a Raleigh rental property are rental income and cash flow. You’ll earn money off the property on a monthly and yearly basis. You’ll also build up the value and the equity in your property, which historically will beat the stock market over time. There are also tax advantages to being a landlord that you won’t get when you sell your home.
Selling – Risks and BenefitsThe risks and benefits of selling are really quite simple. It’s just a matter of cash out now and not having to deal with everything that goes into a rental property, or cash out later. You need to decide what you value and when you’ll get the most value out of your property – now or later. Your specific property will be better for either renting or selling.
If you’re trying to make this decision and you’d like to talk through your options, please contact us at Group 15 Real Estate. We’d be happy to talk to you about the sales option or our ability to provide Raleigh property management for your rental.