Should They Rent or Sell?

[Joshua Fann]

My parents currently own an over 3000 sq ft home that was built in the 1940s. It sits on nearly 4 acres, and has a guest house, a heated/cooled 1000 sq ft 2 car garage/workshop, and a two-story barn. They inherited this home and have a lot of equity built up in it. The problem is, it's too big for just two people, and since it's older, the utility bill is high (especially during these winter months). Since we live in a rural area, it appraised for $300k. I think it would probably bring around $350k if sold today. They have some cash built up, and since we have our own building company, they are thinking about downsizing and either building or buying something smaller to suit their needs. My dad, rather than selling the current place, is actually thinking about renting it out. He thinks he can get $1600/month for the house and $400/month for the guesthouse (it's about 500 sq ft). He also thinks he can rent the shop out to a local woodworker (it's currently equipped for woodworking), or to a local mechanic/car detailing service for a few hundred each month. Assuming he can't rent out the shop separately, the house and guesthouse rent would still more than cover their payment. The tenants of course would pay the utilities as well.

I might add that the home is very beautiful with old hardwood floors and high ceilings throughout, crown molding, etc. We renovated it in 2012. The walls are plaster and are not likely to be damaged. The hardwood floors have a couple re-finishing jobs left in them. 

I guess my question is, how likely is a home this large to be rented out, and since it's a fairly nice home, does imply that the renters would take better care of it? (Please don't laugh too hard at me--I'm a newb). There are a few similar homes for rent in the area. They are asking $1600-2000+ though I don't know if they are getting those prices are not. My opinion is that he should rent it out for about 10-12 years until he retires, then sell it when the market is fairly hot again. What say you, BiggerPockets?