How can you know what to do with your home when it’s time to move? The most common option is to put your house on the market and sell it. However, turning your home into a rental property might be a good option for you! If the market is slow, or you want to start generating investment income from real estate, renting out your home can be the smart move.
When it comes to selling versus renting your home, there's no real "incorrect" option—but there could be a “best” option that will net you a better outcome. Here’s some top points to consider when you can’t decide between renting your Orlando home or selling it.
Can You Recover More Than You Invested?
The real estate market is booming in Orange County. If you don’t like the idea of being a landlord and you’re ready to leave your home behind, it’s a great time to sell!
A home sale provides cash-in-hand to help you invest in your new house or pay for moving expenses. Before you put your home on the market, consider if you’ll recover the money you’ve put into the house long-term.
- How long have you been in the house?
- Is the house valued higher today than it was when you bought it?
- Did you make improvements to the home?
- Did those improvements add value to the home?
- What are the costs of your home improvements?
- Do you need to make additional upgrades or repairs to make your home fit to sell?
Working through these questions will help you understand if selling your home now will help recover what you’ve put into the house. If you can wait to recover expenses, or the idea of making long-term money is appealing, take a serious look at renting out your home.
Will Renting Provide You with More Stability?
If you run the numbers to sell your home and they put you in the red, renting your home to tenants might be a better idea. Tenants help you recover the costs of what you’ve put into your house; better yet, turning your home into an investment property helps generate additional passive income for you now and for the future.
- Determine how many rental homes are in your area and how many currently have tenants
- Assess if your neighborhood is an attractive place for renters
- Select how much you should charge for monthly rent
- Calculate the estimated monthly expenses for insurance and maintenance
This kind of research helps you determine the potential monthly income if you lease your home. If the income is more than the estimated expenses, and your neighborhood is an attractive place for renters, you could have an excellent rental property to bring to market.
Can You Handle Being a Landlord?
If all signs point to transforming your Orlando home into an investment property, your next decision is about you: do you want to be a landlord? It’s a time and energy commitment—but it’s also a rewarding investment opportunity.
Consider these aspects of being a landlord:
- Are you okay with other people living in what used to be your home?
- Can you handle maintaining the home even though you no longer live there?
- Are you familiar with Florida landlord-tenant laws?
- Do you know how to choose the right tenants for your property?
- Are you comfortable collecting rent?
- Could you evict a tenant if necessary?
- Do you know how to list and market your property?
If any of those questions change your mind about renting your home, don’t give up just yet! Many landlords don’t know how to be a landlord before they begin. One of the great things about being a landlord is that it’s a skill you can develop over time. However, we won’t sugarcoat it: it’s a tough job.
If nothing is appealing about being a landlord—except the potential income—hire a property management company. They’ll handle the day-to-day work of turning your home into a profitable investment property and keep your rental income passive—as it should be!
Whether You Sell or Rent, Work with Experts
Whether you choose to sell your home or turn it into an investment property, find the right experts to help you.
Partnering with the best Orlando property management company is the most hassle-free way to transition from a homeowner to being an investment property owner. Verandah Properties knows the Orlando rental market and provides the best property management service to owners and tenants alike. However, if you decide to sell, we can help with that, too! We offer a full-service sales team to guide you through the real estate sales process.
With Verandah Properties, we’ll help you decide the best plan for your home and your lifestyle. Whether you’re considering renting, selling, or you’re even unsure what’s best for your property, reach out to us for a FREE rental analysis. You may be surprised by the hidden value of your home!