Many people find themselves with properties that they did not expect to have. Perhaps a house was inherited from a family member, and you’re not sure whether you should sell or rent it out. In Concord, CA, that decision really depends on the state of the market and your financial goals.
Option 1: Renting Out the Home
Keeping the property and renting it out to tenants is one option when you have inherited a home. First, you’ll need to determine what kind of rental income you’ll be able to get from the house. Your property manager can assess the location, condition and size of the home and compare it to others on the market. You’ll get an idea of how much rental income you can expect and what kind of vacancy rates are typical in the area. This will help you balance projected income against the costs and expenses associated with keeping and maintaining that investment. If the math makes sense, renting out the home is an excellent way to hold onto a long term asset while benefiting from immediate cash flow.
Option 2: Selling the Property
The property’s value will dictate whether it’s wise to sell. The sales market is going to determine how much you can get for the home, and if you think you can’t make enough of a profit, selling should wait. There are also tax considerations that apply to your mortgage and any gains you earn from a potential sale.
When you inherit a property that has some emotional significance, it can be difficult to make an impartial decision. It can be difficult to sell a home that you grew up in or a property that belonged to a beloved family member. If you’re attached to the property, renting it out for a while will allow you to keep it, and that can help you with some emotional factors. When the market gains strength, you’re also allowing the property’s value to appreciate, which means you will see the equity you have in that home increase while you collect a monthly rent check.
There are several things to consider when it comes to deciding whether to rent or sell a property. Contact Astound Property Management if you are struggling with this question and you need some help deciding what to do.