Selling Your Home vs. Renting in New Castle County, DE
Accepting a new job, moving closer to aging parents, or looking for a fresh start, you’ve decided to relocate. You haven’t chosen a real estate agent to get your house sold, because you’re considering using your house for extra income as a rental. There are pros and cons to becoming a landlord, so look through these tips to get you started on making the decision.
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- You need to first look at the financial aspect of renting your house.
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- Landlord’s insurance premiums may cost more than your homeowner’s insurance. Talk to your insurance agent about the differences in these policies.
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- Do the math--if you have a loss after all your expenses (insurance, repairs, property taxes, etc.) are deducted from the rental payments, it’s a better idea to sell.
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- If the money that a home sale would generate will help you buy a new place, by all means, sell.
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- One factor to consider is that if your move is temporary--you know you’ll be returning in a few years, and it may be a good idea to lease while you’re away, so you won’t have to house hunt upon your return.
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- Take into consideration that in larger areas, there may be times of a vacancy. Can you handle the old mortgage and the new? If not, put the house on the market.
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- If there are improvements that need to be done to the home before you can sell it, and you’re not financially able to make them, then renting may be a good option.
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- Keep in mind that most tenants will not care for your house like you, and, after moving, it could be at a great cost when you have to make the repairs.
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- Things can happen, and you may get tenants that can’t pay the rent on time, or stop paying rent, and you’re stuck with the mortgage payment, as well as having to go through the eviction process.
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- Do you really want to become a landlord? Talk to a few people who are experienced in renting and leasing property, writing down questions to ask, and get their thoughts on the process. Experience is the best teacher.
Renting or leasing your home is a big decision to make, especially if you know you may be coming back. The stress of renting just might be greater than house-hunting when you move back. Talk to other property managers in your area and look at your financial information before you make the final choice. When you decide to sell, call a trusted RealtorⓇ.
Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins.
Photo credit: homevestors.com
