If you are debating about renting or selling your home in Windsor Ontario, let me ask you a few questions:
1. Is your move to your new home permanent? Or is there a chance you will come back?
If you are unsure if you are coming back or not, but it is a real possibility, then maybe you will want to rent your property until you are certain what your future plans will be, especially if you would like to return to your home. If you feel you may relocate only temporarily, then from a financial standpoint, renting may be your best option. Ask yourself if you can rent your home for enough money to pay your mortgage, insurance and possible repairs if they are needed.
2. If you think home prices will rise….
and you are not in a big hurry to sell, then renting may be for you as well. From an investment standpoint, this may be a good decision. Consulting with your real estate or financial advisor for information would be a good starting point.
3. Does your home need major remodeling or updating?
Homeowners who don’t have the resources to make the major home improvements often decide to rent rather than sell until they can afford to make updates. The reason? Renters generally accept a home’s outdated condition because they know they won’t be living there forever. On the other hand, buyers prefer a home that is in move-in ready condition. So if you have a home that requires some much-needed attention, be prepared to sell at a much lower price or “as is.”
4. You need the profit to buy a new home:
If you need the profit from your current home to buy a new one, then selling is probably the way to go. If your budget would be so stretched maintaining two homes and the equity in your current home is very much-needed, then selling would be a good idea and certainly create less stress. Again, as a landlord, you will need to make repairs and have your home in good condition when renting it out. Choose a healthy budget as opposed to being broke every month.
5. You don’t want the stress…..
And speaking of stress, if you are a landlord, and the thought of making repairs, dealing with delinquent payments, hearing complaints from your neighbours or worried about how the renters are treating your home, then selling your property is the most logical choice. Some homeowners really enjoy renting out their homes. But others, find it a complete hassle, especially if they have less than desirable renters. One alternative would be to hire a property management company, but they can be expensive and cut into your budget.
6. Do you want to take time to understand landlord/rental laws and regulations?
Renting a home can be a daunting experience if you don’t understand the various laws and regulations. How can you evict a tenant? What if they are constantly delinquent? What if they won’t move out? If you have lots of time or plan to live nearby, then renting your home may be an excellent option. But if you live out of the area and your lifestyle is so busy that you are unsure what your rights are and you don’t really want to take the time to learn, then sell your home. Renting is not for those that are not in it 100 percent.
So overall, when deciding to rent or sell, take the time to review the following:
- Your financial situation
- Current real estate market trends
- Your housing plans in the future
- Your patience level at being a landlord
- Current and future home sale prices.
Again, don’t hesitate to contact a real estate agent and find out if renting or selling is right for you. While it’s a big commitment to be a landlord, it also could be in your best financial interest. Carefully go over your budget and make sure you have the necessary funds should a renter not be able to pay the rent or the house is vacant for several months. If a major repair is needed, will you be able to respond and repair quickly?
Again, these are only questions you can answer, but get the advice of professionals and make sure you have all of the necessary information before you decide.