When you inherit a property, or find yourself as an accidental landlord, the natural question is whether to rent or sell in Brentwood, CA. This decision depends on your financial situation, and you should talk to your tax specialist or CPA before you decide. You’ll need to consider the tax exposure that comes with both options, as well as whether you can afford mortgage payments on a potentially vacant house. Talk to as many professionals as you can when you’re gathering advice.
Ask for Property Management Help
In addition to talking to financial planners and tax accountants, you should also consult a professional property manager. This is especially important if you think you might rent the property out instead of selling it. A good manager will have the data to tell you how much rent you’ll be able to charge for the home. When you’re seeking a property manager, look for one belonging to the National Association of Residential Property Managers, or NARPM. Managers belonging to this association are held to high ethical standards and provided with tools and resources that can help landlords like you.
Think About Temperament
Being a landlord requires specific personality traits. Think about how you’ll react when your tenants damage the sheetrock in your property, or tear up the backyard. Most investors approach their rental property as a product, and the things inside it can be replaced when they are damaged. However, landlords who once lived in the home or have an emotional attachment to the property might be over-invested in its condition and what goes on there. If this sounds like you, selling it might be a better option.
Cost of Keeping a Property
As a landlord, you’ll have costs associated with holding onto your property as an investment. Maintenance and repairs will be required, and you won’t always know why or how things break. For example, you might have lived in your home for decades without having to fix a toilet. But, your tenants will call you in the middle of the night to report their toilet isn’t working, and you’ll need to replace it. As the property owner, you’ll have to pay to repair or replace these things. So, consider your budget and whether you want to have your nights, weekends, and holidays interrupted by tenant concerns and rental property problems.
If you’d like to talk further about whether it’s better to rent or sell your property, contact Select 1 Realty.