When should you rent your home and when should you sell it? This is a common question I get from property owners. Today, we’re talking about why you might sell and why it might be a good idea to own and operate a rental property in Atlanta.
First, consider whether you need the money out of your home when you sell it. Determine whether you need that money to buy the next home. You’ll need to know if you have equity in the property, which you can use. Rental income is also an option to consider. If you have a property that can produce income, it can help you decide to rent it out. It’s a great idea to rent out a home if it has the potential to generate income. Your CPA might tell you there are additional tax write offs that you need, which a rental property can provide.
Selling your home also depends on your market and whether it’s a seller’s market or a buyer’s market. If you find yourself in a buyer’s market, selling isn’t a great idea because you won’t get a premium price. If it’s a seller’s market, you can do better because there won’t be as much competition. The rental market is usually strong when homes are also selling. So, that’s the challenge.
Costs of Being a Landlord
The question is not an easy one to answer, but looking at the finances of it can help. Many people misunderstand the finances of owning a rental property. It can often be costlier than they realize, especially when it comes to maintenance. But, those repair costs are also tax deductible. You have to really look at your own budget to determine what you need money for and how much you need. You need to ask if you can afford to go for several months of vacancy without rental income. Also, being a landlord is not for everyone, and that’s where an Atlanta property management company can help you. Long term wealth is often built by owning real estate. So, making your first home into a rental home might be a good way to get started. That’s the first home I used as an investment and it was the one I knew best.
There are lots of other questions that can be answered. This is why you hire a real estate professional, so talk with a company that does both selling and renting. An expert who buys, sells, rents, and manages property can give you a better analysis for your situation and your property.
If you have any questions about property management in Atlanta, please contact us at Bravo Group Real Estate.