When you’re ready to move out of your Lamorinda property, you’ll need to decide whether you want to sell the home and move on completely or hang onto the asset and rent it out instead. We work with homeowners who are downsizing, looking for a larger home to accommodate growing families, and relocating out of the area for work or other reasons. We know that sometimes, it can be difficult to decide what to do with your property.
As you’re making your decision, consider these important details. And, don’t hesitate to reach out to professional real estate agents and property managers for help in deciding what’s best for you and your long term goals.
Personal Financial and Investment Goals and Needs
Your personal finances will play a large role in whether you rent or sell the property. If you have a lot of equity built up in your home and you want to use that capital to do something else such as make a down payment on a new home, selling is your best option. If you don’t have an immediate need for cash, keeping the asset and allowing it to appreciate over the long term might be your better option.
If you do decide to rent the property out, make sure you have enough money in the bank to cover expenses such as repairs and any updates or maintenance items that might be needed before you put the home on the market. You’ll really need to budget for other expenses such as vacancy and marketing.
It’s also important to consider your own investment goals and strengths. If your portfolio could benefit from holding onto a piece of real estate, keep the home and rent it out. If you already own a lot of property and you don’t feel like this strengthens or diversifies your investment portfolio, it might be better to sell it.
Rental and Sales Market Strength
Another thing to consider is whether the sales market will support the price you’re hoping to set and achieve. If there’s a lot of competition on the market and homes aren’t selling very quickly, it’ might be a good idea to rent the property out until the sales market is a bit stronger. It’s also a better idea to rent when you don’t have the equity that you need to really make a profit on the sale. If you’re just breaking even or you’re upside down with your mortgage, rent the property out until you’re in a better sales position.
Examine the strength of the rental market as well. Will you be able to earn enough in rent to make leasing your property a wise decision? Do you have a home that’s in a desirable location for renters? You’ll want to estimate what you can earn in rent, how long it will take to find a tenant, and whether you’ll be able to meet the requirements of a California landlord. Working with a professional Lamorinda property management company can definitely help.
There’s a lot to consider, and we can help you take a look at your options and make the best decision. We are a full service real estate brokerage and help our clients purchase and sell real estate in addition to managing properties. Please contact us at Stowers Real Estate for more information.