When you own a property, there are two ways to go about earning money from it. You can either sell the property for a profit or rent it out to earn more in the long term. A lot of the blogs discussing this topic will typically go into the numbers. However, it can all get very confusing. It will probably help to just weigh out the pros and cons of both options.
In thecurrent housing situation, it makes sense to go into either selling or renting out, and you would most likely still receive a sizable profit. But whether you decide on either one of the options depends on your savings, your free time, and the effort you’re willing to put in. Just make sure that you’re aware ofthe kind of ownershipyou have on the property so that you don’t run into problems later.
If you don’t own a second property outright and you intend to purchase a new property, you can always speed up the process without having to go through a realtor. There areapps through which you can buy housesat much lower prices because you don’t have to pay a steep finder’s fee for them. You’ll also be able to view houses before they hit the market.
How much capital do you have?
Preparing a home to rent out to someone will need some capital. You will need to purchase furniture, curtains, and other things to furnish that home. As a landlord, you will also need to invest in water quality testing kits, as well as a device that tests for radiation. You will become responsible for the safety of your tenants while they’re renting out your property. All of this will be on top of the cost of the property that you will rent out.
On the other hand, if you decide to sell, you can either sell it yourself through online platforms or go through a realtor. Keep in mind that after you sell the property, the realtor will receive a hefty commission. It would be a lot more profitable for you to sell it yourself. This option won’t require much capital, especially if you’ve already staged the house using your own furniture. Otherwise, the main cost that selling the house might incur would be the cost of staging it for buyers.
How much free time do you have?
When you rent out a home, you’re also providing a service. You’re responsible for the upkeep of that home and any repairs that the tenants might need. That is, you will also be responsible for the cleanliness of the property as well. As you may have already known, thegovernment requires landlords to regularly inspect their property. You’re going to need an inspection checklist and a camera during each visit. You will also need to make sure that the property you’re about to rent outwas not usedas a lab to produce methamphetamine.
You will need to conduct frequent inspections of your property, at a maximum of once every four weeks. Prior to conducting the inspection, you will need to inform the tenant beforehand, which means you will have to maintain contact with them. It’s going to take a lot of time, especially if you’re planning to rent out more than one home.
If you decide to sell the home, it will take up a comparatively shorter period of your time because once it’s sold and all the paperwork is complete, you will no longer have to deal with that property. The most time-consuming aspect of this option will be the staging and the open houses that you or your realtor will be conducting.
How hard are you willing to work for the money?
Both options will need you to work hard to earn a profit. Renting out a home will considerably be more time-consuming and need more capital than selling the property. Finding a buyer might take up your time at the start, but you won’t have to worry about the property once it’s sold. However, in the long run, renting out the space will more likely bring in a greater return on your investment in that property.
Ultimately, you can push through with both options, just at different time frames for the same property. If you have some free time every month and can put up the capital to rent out the space, you can start off as a landlord. Later on, when you’ve decided that you’re no longer capable of the upkeep, repairs, and frequent inspections, you can decide to sell the property. Either way, if you decide on only one of the options over the other, you will still make a profit.