Rent Out Vs. Selling: 3 Facts To Help You Decide
On the heels of a global pandemic that ravaged the economy and put rent on hold for cash-strapped renters, many landlords wonder if they should cut their losses and sell their property. The hot real estate market makes the idea of selling tempting, but is it actually a smart move? The answer to that question depends on your long-term goals. Renting offers many financial benefits to investors, and with the right property management company, it’s easier than ever before. If you’re still on the fence, keep reading to learn more about the power of renting.
Passive Income
The most common reason why people decide to be landlords is to make money. Home prices are rising, with rent pricing surging just as quickly. Year over year, rents are up 7% for one-bedroom apartments and 8.7% for two-bedroom apartments, according to data by Zumper. Though the pandemic launched the US into uncertain territory last year, the real estate and rental market have grown at impressive rates with no signs of stopping. By renting your property, you can make reliable passive income without even lifting a finger.
To know what to charge for rent, look for comparable properties on rental sites and find a price in line with the market. If you can consistently rent your house out for more than your mortgage payment plus other expenses, you will grow a profit over time.
Playing The Long Game
Although many homes are selling for over list price, these days, waiting to sell can increase property value even further. By renting out, you have the opportunity to let your equity grow and the flexibility to be a market opportunist.
Experts predict that housing supply will remain low into 2022, with demand bubbling over as younger millennials enter the market. Playing the long game by waiting to sell gives you the ability to make more money in the future.
Property Ownership On Your Terms
Lastly, full-service property management from CJL makes it easy to own property without the hassle. For many landlords, staying up to date with ever-changing rental laws, interviewing tenants, doing repairs, or creating “for rent” ads is too time-consuming to keep up with. Moreover, property owners that live out of state certainly cannot attend to middle-of-the-night emergency home repairs.
A property management company can take care of all the unpleasant parts of owning rental property. CJL can help you advertise your property, find tenants, collect rent, perform maintenance, handle evictions, field tenant calls, and much more. Although property management services do cost money, it’s truly a small price to pay for peace of mind.
Owning and renting out your property is a smart move as real estate remains a reliable investment year after year. Though selling property has its benefits, renting allows you to make passive income while CJL handles all grunt work. When you do decide to sell, you can reap the rewards of waiting for the right time.
CJL Rentals specializes in rentals and property management. When you work with us, you are interacting with the owner of the company regularly. We are honest, attentive, professional, and highly efficient.
Contact us to learn more about our property management services today.