To sell or not to sell? The question of “should I sell my house or rent it out” is a tricky one. Each outcome provides potential advantages as well as inevitable drawbacks. There are a host of important factors to consider before committing to either decision but today we will give you the top pros and cons for each side. Learn whether or not you should sell your El Cajon property or rent it out.
Why Should You Sell Your Home?
Location, Location, Location
El Cajon is no different from most other San Diego locations. Located just a few miles east of Mission Valley, the area has experienced massive growth over the past several years. The median home price is $521K and it is likely to grow with the population in the coming years.
If you were fortunate enough to purchase your property many years ago, you may be more inclined to take advantage of the equity you’ve built and sell your home for a nice profit.
Avoiding a Down Market
If the real estate market is showing early signs of futility, you may want to sell your home before the situation gets worse. This is especially important for homeowners who need to generate income and can’t risk holding onto their property for several more years while the market slowly comes back (if it even does).
Look around your community and see what other homeowners are doing with their properties. How long are listings remaining on the market without a sale? And how many of those are getting taken off the market altogether?
If the market has already hit a slump and you need to sell your home fast, call a professional who can offer you cash today.
Not Interested in Having Tenants
This one might seem obvious, but the fact of the matter is that many property owners don’t want “strangers” living in their home. They fear potential damages could occur that would sully or destroy their entire investment.
Additionally, many homeowners don’t view themselves as property managers nor do they want to hire someone to fill that role. The added responsibilities just don’t make sense for many homeowners who either don’t have the time nor the patience to handle things.
Need Cash for Next Purchase
If the homeowner is unable to sell their existing property, they might not have enough cash in hand to place a sizable downpayment on their next home. By unloading the existing house, they’d be putting themselves in a much more lucrative position for their next purchase.
Why Should You Rent Your Home?
Rental Income Will Be Valuable
If it’s a down market, or you just don’t feel like parting with your home right now, it may be worthwhile to rent it out for at least a year. You’ll be able to earn some rental income during that time which can help pay the mortgage, HOA, and other fees associated with your homeownership.
Be sure to run the numbers beforehand to determine how much money you’ll need to charge in rent in order to earn a profit. Pay attention to long-term rent prices as well to determine if renting for long periods of time is the best strategy. In El Cajon, rents have skyrocketed making this an appealing option for homeowners who aren’t 100% ready to sell.
Are you leaving the area temporarily? Renting your property out might be wise if you plan on coming back full-time.
If you’ve been transferred to a new job or you’re not quite sure where your existing job is going to take you next, you should consider hanging on to your property until the uncertainty subsides.
What’s more, you won’t feel like going through the home selling process if you’re stressed out and unsure about your job situation.
Lest you forget, you do pay taxes on rental income. However, there are also several write-offs you can utilize to lower your total tax bill.
Every situation will be different based on the homeowner’s adjusted gross income, costs associated with renting their home, and other expenses incurred. It’s something to research with a tax professional before deciding if renting is the way to go.
You Have Management Experience
Having tenants means you’re a landlord, which means you’ll have to exercise some management skills every now and then.
Do you have management experience on any level? At a restaurant? In a marketing company? If not, then being a landlord might not be the right occupation for you.
Think of yourself as the manager of your property. If a pipe bursts at 2:30 am, you’re the one who has to call the emergency plumber to come over and fix it. These mishaps typically don’t occur often, but when they do you need to be equipped to handle things fast.
Finally, if you’re unable to evict a tenant should they behave inappropriately and break your lease agreement, then you’re definitely not cut out for this.
What Should You Do as an El Cajon Homeowner?
Everyone’s situation is different, but assessing all of your options is key. Make sure you recognize the pros and cons of selling or renting before committing to either one, for the sake of you and your family’s sanity.