Rental property investment can be a good way to generate passive income and earn ROI from your properties. However, many homeowners are often faced with the dilemma of whether they should sell or rent their property, especially if they are about to relocate to another place. While renting offers a steady monthly income, selling provides lump sum cash for other financial expenses.
Both options have their advantages and disadvantages depending on the market trends and your personal preferences. The owners should, therefore, consider the following factors before selling or renting their Beaufort home.
Current Rental Market Scenario
You must consider the market value of the property before selling or renting it. Every local rental market is unique, and the prices vary according to the location and demand of rentals. The average home value in Beaufort has increased by 13% as compared to the previous year, and 31% of households are renter-occupied. In addition, the current rent value in Beaufort is around $1,301 for a one-bedroom apartment. Renting a property can cover the expenses such as taxes, mortgage, and repairs if the rent value is likely to increase in the future.
Your Readiness to Be a Land-lord
Property ownership comes with obligations and responsibilities. Tenants expect timely responses to their concerns. You are expected to conduct regular inspections and maintenance to keep your house habitable. Also, finding suitable tenants, addressing repair issues, paying damage repair costs, handling evictions, and following other legal procedures are additional responsibilities. Take some time to decide whether you are prepared to handle the stress and responsibilities involved in managing a rental. Alternatively, you can hire a property management company in Beaufort to manage your investment for you.
Personal Reasons for Holding on To the Property
Buying a home is a huge achievement, especially if it is your first-ever investment. Naturally, selling a house that you are so attached to can be a hard decision.
In such a condition, you might prefer renting the place and retaining the ownership. You can manage other expenses such as electricity bills and repairs from your monthly rental income. Renting can save you extra sales commissions involved in selling and purchasing other properties.
Having said that, it is important to remember that your rental is not your home and your tenants might not always take as much care of the place as you would.
How Relevant Is Your House in The Current Market?
You must determine whether your property is an asset or liability in the current market scenario. If it is in good condition and is located in a great neighborhood, renting is a good option. However, it is essential to inspect and evaluate the potential maintenance cost before leasing. If it requires heavy repairs and will not attract potential tenants in current market competition, you can consider selling the house.
Can You Compete with Other Rentals?
Do some research about the rent charged by rental properties in your area. You can check popular real estate websites or consult a local rental property manager to know the current demand. If your rental is equipped with advanced facilities, home appliances, it can attract potential tenants and earn you profit.
Availability of amenities in the neighborhood can further make your property competent.
Recognize your financial goals
Selling or renting a house depends on your priorities. If you urgently need money and don’t have enough finances to maintain your home, selling it makes sense. In addition, if you are planning to buy another property and need money, selling your current house can provide you with the amount you need.
If you are unsure about the rental value, study the Beaufort real estate market or approach a local property manager. If you plan to sell the place, you can wait till the market value of your property improves. In case you think you can easily handle your responsibilities as a landlord, you can lease it. Working with a professional property manager for your Beaufort home can help you decide between renting or selling a home. Experts at Beaufort Rentals will assist you in making the most profitable choice for your investment. Contact us to know how.