About to move, have never landlorded: rent out or sell?

Question

JD Martin · Answer

Before you can make that decision, you have to first determine if your house is a suitable rental property candidate. If yes, then you have to determine if you want to be a landlord. If also yes, then you can start sorting out how to do it.

More times than not, your primary home is a better candidate to sell than to rent. Reason: you bought it with your needs in mind, not with the needs of the rental market. You improved it with your needs in mind, not with the needs of the rental market. No one is going to pay you more rent for your fancy light fixture or ultra low-flow toilet. People might pay more for these things when they are buying, however.

Thomas S. · Answer

If you don't know the numbers, or how to find those numbers your best option is always to sell.

This is a risky business that requires hands on involvement of landlords either through direct management or managing a PM.

Robert Johnston · Answer

I was in this very same situation, but not moving quite as far. For me, it was all about the numbers. I knew that I'd have to get top-dollar for my house just to break even with the remaining balance on my mortgage (only 2 years into an FHA loan with 3.5% down). The odds were slim that I'd get what I need and I didn't want to bring any money to the table. I ended up renting it out after denying two applications and now have about $250/mo coming in after the mortgage and HOA fees.

It's tougher when you're not living close by, which gives you a few other options. You could find a good PM company to handle it for you, but I've noticed that GOOD ones are hard to come by for some. You could do what I do - ask the neighbors and local friends to drive by when they're in the area to make sure everything looks okay. And, keep in contact with your tenants regularly - not just for rent. Being a good landlord means being hands-on and it takes time and effort.

Run the numbers and decide which is more appealing to your situation and start there.

Ray Harrell · Answer

Depending on where your property is, a renter will NEVER EVER take care of your property the way you have. Also, even with Airbnb, "whole house" listings are usually the ones that get vandalized, mistreated, ransacked, and everything else. If you aren't willing to be present to check on your property frequently, I'd suggest selling it. UNLESS you have someone that you REALLY TRUST who can manage it for you.

About to move, have never landlorded: rent out or sell?

About to move, have never landlorded: rent out or sell?

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