photo credit: roarofthefour
You’re thinking about a move but don’t know whether to sell your current property or to rent it. It’s a difficult decision for some as the thought of added income every month may be tempting but the idea of having to deal with tenants may be daunting.
Before you decide to sell or rent consider whether you’ll be able to manage the property or if you’ll have to hire a property management company. If you’re going to do it yourself you’ll have to be ready to deal with the headaches that could ensue but you’ll save a bit of money. If you’re going to hire a property management company you will be shelling out a bit of cash to pay for their services, but you wont have to deal with the routine issues that arise in a rental property.
In addition, you’ll have to look at your income or potential income from the property. Will you be creating positive income through your rental? Even if the rent pays for your mortgage you might not be getting a positive income as you’ll have repair and maintenance expenses. You’ll also want to consider vacant times when the current tenant is gone and how long you will have to cover the entire mortgage while you search for new tenants.
When done correctly, property ownership can be a very lucrative deal, but you should really think about this commitment before you jump at the chance as, for some, be more trouble than its worth.