Deciding whether to sell or rent

Deciding whether to sell or rent

Member since 2018 · 3 posts · 0 votes

I am caught between the decision to sell or rent my home. It’s 2 years old, and I’m having to relocate for a job to another state. If I list it for sale, it might break even and I can sell it and walk away, but I may end up having to bring money to the table. On the other hand, I can rent it, make $300-400 extra month off of it, and try and sell it in a year or two. I eventually want to sell the property, once the equity builds. I’m in the central Texas area and I’ve found a good property management company, but I am very hesitant to rent it, with all the horror stories of bad tenants. I don’t plan land on returning to the area I might add. It feels like more of a hassle to sell it, since i may not walk away clear(with the house being so new). Should I give renting a try? 

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Erie, PA · Member since 2018 · 413 posts · 348 votes
8y

A big question for me is what type of tenants would your house attract?  If better ones, maybe contact some PMs.  If could be shaky, maybe just sell and take the loss if it will add too much stress to your life.

There are a ton of good threads on what questions to ask PMs on here with some searching.  

Good luck

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  • Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
    8y
    @Dysteny Stratton I think if you don’t need the money, then definitely rent it out. You’ve lived in the home and you’re super familiar with the area. You know your neighbors and know the kind of people who would live in that area. Yes, there are horror stories out there but it can be avoided. I inherited a tenant with my first rental property purchase in February, she was great at first then started paying late. She ended up abandoning last month and leaving all her crap there. Yes we had to put some money into fixing it, which should be done next week, but it’s not as scary as it sounds. We are looking for our next purchase now. I’m happy to help answer any questions about landlording or even help you with whatever you need. You can PM me :) we are managing our own property in Florida while living in NY and it’s not so bad. Even doing a renovation from here with someone I met on BP. Definitely helps making friends on here!
  • Member since 2018 · 3 posts · 0 votes
    8y

    @Elenis Camargo Thanks for your insight! Selling the home at this point would not bring any profit, which is my ultimate goal. I do fear the expenses of repairs, although the home is new. I've heard of appliance plans to cover cost etc, which would be another expense, but I imagine well worth it. With the home being in TX, and relocating to MN, I can't keep tabs on it as much as I'd like to, although I know people in the area who wouldn't mind a drive-by check. I am hoping the property management company will handle the hassles for me, and keep a steady tenant that won't ultimately destroy the home, ruining its value. 

  • Erie, PA · Member since 2018 · 413 posts · 348 votes
    8y

    A big question for me is what type of tenants would your house attract?  If better ones, maybe contact some PMs.  If could be shaky, maybe just sell and take the loss if it will add too much stress to your life.

    There are a ton of good threads on what questions to ask PMs on here with some searching.  

    Good luck

  • Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
    8y

    @Dysteny S. If the home is new then you should not have too many maintenance issues. You ultimately know the home best. Here are some questions I asked my PM, which I am only using for tenant placement services. Since you want someone to manage full time, I removed some of the tenant placement only questions and added #6 and 7. You'll also want them to run comps, if they haven't already, to tell you how much the rent can be. I manage my own from over 1,000 miles away, it's not so scary!

    1. What is your procedure for qualifying tenants?
    2. Which strategies do you use to fill vacant units quickly, but without sacrificing tenant quality?
    3. How long do units typically stay vacant after turnover?
    4. What are your fees? 
    5. Do you also handle evictions? If so, what are the fees for this?
    6. What steps do you take when a tenant has a maintenance issue? How long does it take to resolve it?
    7. Do you make any profit on maintenance repairs?
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