Deciding to rent or sell your Chesterfield home is a big decision, and the right choice depends on your financial situation, your plans for the future, and your investment goals. Many people decide to rent out their properties when they’re not sure they want to give up the asset or they have trouble getting the sales price they want.
Talk to a professional property manager or Realtor when you’re weighing the pros and cons to each option. Enlisting the help of a professional who understands both the sales and rental market can help you make a smart decision.
Current Cash Needs
If you need a large amount of cash right now in order to put a down payment on a new home, you might want to sell your property in Chesterfield rather than rent it out. Your rental income will depend on the market, and it will take some time for you to see a real return on your investment. If you have enough equity in your house, you can earn some short term cash by selling the home. When you don’t have an immediate need for funds, holding onto the property and renting it out may provide for a higher return in the long term.
Relocation and Living Plans
You may want to keep your property and rent it out if you have plans to return to the Chesterfield area. Many people are sent out of state or even out of the country for work or family obligations. If you know that you’ll come back here, however, you may want to have a place to live when you return. Or, perhaps you’d like to keep your property for an eventual retirement. If there’s a chance that you’ll return to Chesterfield, consider renting out your property. You’ll have the opportunity to earn some money and allow the asset to grow in value.
Benefits and Challenges of Being a Landlord
Sell the property if you’re ready to simply be done with it and you have some other ideas about how to invest your money. But, if you’re looking for a way to invest in real estate and earn some passive income, you might want to rent the home to tenants. Being a landlord is a huge responsibility and comes with a lot of risk and frustration. But, if you work with a professional property manager, you won’t have to worry about too much. Your property manager can advertise the home, place good tenants, handle security deposits, and keep the property maintained. You’ll be able to enjoy some tax breaks as a landlord, which will offset your rental income, and you’ll have a tangible asset that diversifies any investment portfolio.
We’d be happy to help you decide whether you should rent or sell your Chesterfield home. If you have any questions, please contact us at The Wright Choice Richmond Realty Group.