To Sell or Lease?
Leasing a Home is an option that many sellers are considering particularly when the house will not sell for what is needed to cover the cost of selling.
Leasing is not without its risk.
If upgrades have already been made, the upgrades will not be so fresh in one to two to three years when you do decide to sell. In fact there is the chance, new investments will have to be made to bring the house to the same quality as before the tenants. The house may have to be repainted and recarpeted prior to selling.
However if the leasing of the home covers your carrying cost of the home, the seller stands to gain because of the tax advantages of elgible deductions such as mortgage interest, repair items, and depreciation.
Take into account that there is a vacancy cost. If a tenant moves out and it takes you a month to get a new tenant moved in, that is your vacancy cost.
Not everybody wants to be a landlord, however. Hiring a property manager is an option and that means that the management fee needs to be considered as well.
Then there is what will make you sleep well at night facter. Do you want to continue maintaining your property and all that entails while it is occupied by a tenant? If the uncertainty makes you nervous or you simply can not risk unforeseen repairs, then selling now even might be your best decision.