A number of people are called away from home due to work obligations, and they naturally wonder what to do with their property – should they sell it or hold onto it and rent it out? There are several things to consider when you’re making this decision.
Equity and Finances
If you don’t have a lot of equity in your home, there’s a good chance you’ll lose money if you sell it. While the real estate market in Northern Virginia is recovering, it’s still a long way from regaining the strength it once had. Waiting for a few years to sell might make sense while the home continues to appreciate in value.
Plans to Return
If your move out of the area is temporary, you will need a home to come back to. That’s a good reason to hold onto your property and rent it out until you need it again.
Even if you’re not sure when you’ll be back, a rental property in Northern Virginia has the potential to give you great investment returns. This asset will give you short term gains in the form of rental income as well as long term gains in the form of appreciation. While selling the property might give you a larger, one-time cash flow, there will be tax consequences and a lot of waiting while it’s marketed, shown, inspected and evaluated. You may not close until after you have left town, whereas if you have it on the rental market, your rental income can begin as soon as you vacate the house and a tenant moves in.
Hire a Professional
You may be worried about how you’re going to be a landlord when you’re not even living in the area. A professional property management company can take that burden off your shoulders and take care of everything pertaining to your property. Your property manager will find you a tenant, screen the tenant, keep the property maintained, collect rent and take care of the day to day operations of that home. You’ll have access to all the information you need without having to worry about any of the hands-on work.
If you’re still not sure whether selling or renting makes sense for you, talk to someone who has experience in both markets. We are full time property managers who are also licensed real estate agents. Contact us at ARMI Property Management, and we’ll help you make the right decision.