Finding yourself the sudden owner of a second home can feel more like a burden than a gift, and the emotional, financial and practical challenges are very real. If you’ve never owned investment property, figuring out whether it is better to rent or sell the property can be difficult. Renting a home can create steady income but comes with ongoing responsibilities and financial outlay. Selling gives you a large payout but can have major tax implications. The right choice often comes down to your needs and goals.
In the present real estate climate, with high-interest rates and homes taking longer to sell, renting may be a great option, as doing so will help you avoid the downside of the current market and generate substantial income. While being a landlord can be challenging, with the right guidance, you can maximize your return on investment and avoid problem tenants. A well-managed rental investment can provide a long-term and consistent stream of income that would supplement your existing salary, support retirement, and bolster your ability to invest in other ventures. The key to having this experience and eliminating the headaches of property investment ownership is working with a skilled and reputable property management expert.
Studies show that accidental landlords, without property management support, struggle most with staying on top of maintenance and repairs. Falling behind or failing to make repairs leads to lower rental rates, lower quality tenants, and higher costs when repairs are eventually completed, as well as possible legal liability. A competent property manager can identify potential maintenance issues before they become a bigger problem and have a network of vetted and experienced home service professionals on call to keep your property in the best possible condition, helping you to command higher prices when it comes time to sell.
In addition, many accidental landlords struggle to keep up with changing rental rates and shifting legal requirements. Without this information, you risk renting your rental property below market value and exposing yourself to liability for violations of new or updated laws. A knowledgeable property manager will make a point of staying up-to-date on market and legal developments and can quickly pivot to ensure your property is competitive and legally compliant.
Not everyone intends to become a landlord, and discussing the pros and cons of renting with a property management and real estate professional can give you a realistic picture of what to expect. Real Property Management Advisors understands the frustrations and worries of being a landlord. Our owner has been a landlord himself for 20 years and knows how to alleviate the uncertainty of the rental process. If you need help handling a second home, contact Real Property Management Advisors to learn how our team can turn an unexpected burden into a revenue-positive asset.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
