Selling vs Renting your property can be a daunting decision especially for 1st time Landlords/Investors.
Here are several things to consider when factoring in selling a property vs turning it into an investment property.
1: Have you been a Landlord/Investor in the past.
2: Have you tried selling the property for a period of time.
3: Why would you want to rent vs sell the property.
4: What would be the advantage of renting vs selling.
5: Have you given thought to becoming a Landlord/Investor and for what time period.
6: What type of financial gains are you looking for or expecting if you were to rent. (here one needs to factor in all expenses incurred on the property, ie; mortgage, taxes, insurance, etc). Keep in mind what the market may bare for rental value may differ from what you expect. * Always consult with a professional when possible.
7: What type of rental services will you require. (Full management services, partial management services, tenant placement services etc.). Depending on services needed will determine fee’s charged by Brokerages.
8: What condition is the property in and what if any maintenance or work will be required to get the property ready for renting. (What expenses will be incurred here and will they be recouped if renting the property).
Based on the above noted items it is always best to consult with a professional to identify and determine what is viable to turn a property into an investment and to make sure what does or does not need to be done prior to making any final decisions as to turning a property into an investment/rental situation.
These are just a few things to consider when deciding to turn a property into an investment and keep in mind the more information and feedback you receive in advance the better prepared you will be once the process is put in place to become an investor/landlord.
Stay tuned for additional postings on this topic and many others in the weeks/months to come.