Making the Right Choice for Your Lifestyle
Deciding what to do with a potential second property is never an easy task. Whether you are combining two households, inheriting a property from a relative, or purchasing a new home and leaving the old one behind, holding on to your current home once you buy a second one can help to create a positive cash flow.
Reasons Behind Renting Your Second Home
There are many reasons to rent out your current home instead of selling. The number one reason is that a rental property is an excellent opportunity to build wealth through real estate. By creating a rental portfolio, you are saving and preparing for the future. Best case scenario: your rental income will cover the mortgage and tax payments on the new home you are purchasing. If you play your cards correctly, you may even begin to pull in a positive cash flow that covers more than just the mortgage.
There are other reasons to rent out your second home.
- The move is temporary, and you do not want to completely give up your residence.
- Home values are increasing, and leasing your home will take advantage of that appreciation before deciding to sell.
- If you can’t afford to sell your current home due to the mortgage and want to buy some time to gain equity.
- A strong rental market may drive your choice to find a qualified applicant to cover the cost of the current home’s mortgage and subsidize the new home as well.
- If a Property Management Company is a possibility, the service will take care of all of your landlord’s needs.
Let’s Be Fair
It wouldn’t be fair if we didn’t outline some of the advantages of selling your second home. If your move is permanent and you need to sell your current home to afford the new one, it may be in your best interest to sell your home. Also, if the real estate market is a “seller’s” market, offloading the property for the highest price possible doesn’t sound like a bad idea.
Know the Process
If you plan to rent out your second home, make sure that you know the market and price the home competitively to attract qualified applicants. Take a look at the following blogs to better understand how to find the right tenant.
- 3 Ways To Attract Long Term Tenants
- 4 Ways To Find the Perfect Tenant
- How To Decide On a Rental Price
- 5 Things To Think About Before Renting Your Home
Consider Hiring a Property Management Company
A competent property management service can add significant value to your investment property. The property management team will make sure to acquire higher quality tenants, help with tenant retention, create a shorter vacancy cycle, combat any legal issues that may present themselves, and help with maintenance repairs and costs. They will also help with all tenant concerns, general maintenance, and any legal issues that may arise. Essentially, they are there to do what is best for you and the tenant.
If you live in the Raleigh area and are interested in a property management company, take a look at Oak City Properties! We provide services to help investors, homeowners, and landlords. Feel free to give us a call (919)-232-9222 or check out our property management options.
Also, if you found this blog post helpful, take a look at a few of our other blogs.