We are often asked about whether it makes more sense to sell my home or to hold onto it and rent the property. This really depends on your financial situation and your long term investment goals. As you’re deciding, there are a number of specific considerations to weigh.
Real Estate Market Factors
Pay attention to how the real estate sales market is performing and compare that to the performance of the rental market. Several factors will influence how quickly you’re able to sell a property, from the time of year to the size and condition of your home. The market for a home with two bedrooms and one bathroom is different from the market for a home with four bedrooms and two or more bathrooms. Talk to a broker and get an idea of how much you can expect to ask for your home and how long it will take you to sell it.
Rental Market Factors
The rental market in Portland is strong, and if you decide to hold onto your property, you’ll have a good pool of tenants. Calculate the cash flow you can expect, assuming between eight and 10 percent of your rental income is put aside for maintenance and repairs. Talk to a professional property manager about an on-site evaluation; we do those for free at Eagle Property Management. There is a consistent flow of people moving into the area, so the rental market will remain strong.
Talk to your tax professional about the implications of selling or renting your home. If you sell without investing in another property, you may be subject to capital gains taxes. When you hold onto the home and rent it out, you can deduct maintenance costs and management fees on your taxes.
You’ll also want an impartial assessment of the condition of your home. If you need to invest a lot of money to bring it up to market standards for sale, you’re going to lose money in the long term. However, the rental market will simply require that everything in the home is clean and functional. You can get maximum rent with a nicely presented, habitable home.
If you’re still not sure whether you should sell or rent your property, contact us at Eagle Property Management, and we’d be happy to help you.