Have you ever thought whether it would be better to rent or sell a vacant home that you own? Maybe you already have someone renting this house, or you have been considering renting it to tenants, but would that really be the better choice?
Deciding whether or not to sell or rent your vacant home is an incredibly big decision that requires a lot of thought. Therefore, you should always look at the pros and cons of selling or renting your home.
The Main Reason to Sell Your Home
Before you can look at the pros and cons of selling your home instead of renting it, it's important to look at the main reason why you should sell your vacant home.
If the following reason applies to you, then it is best to sell your vacant home as soon as possible.
The Value of the Neighborhood Has Gone Downstream
If your vacant home is in a neighborhood where the value is sinking, it's best to sell this house and move on as fast as possible. By doing so as quickly as you can, you will get more money than you normally would unless you plan on waiting to see if the value will go back up, which is an extremely bad idea.
Once the plummet in value has begun, it's hard to know when it will stop, or if it will stop at all. Speaking to a real estate agent who has experience and knowledge about dropping neighborhood value will help you in figuring out what to do.
If the agent believes that the value is not going to go up anytime soon, or at all, it's best to sell your vacant home as soon as you can. By using a real estate agent to sell your vacant home, the process will go a lot more smoothly when compared to doing it by yourself, especially if you need to sell it within a short period of time.
An agent will help you and tell you what to do when it comes to preparing the home, like referring you to a plumber or an electrician to have them come in and do a walk-through to ensure everything is in order. They will also give you advice whether or not you should stage the home, or just leave it empty of furniture, if you currently do not have any in there. Your real estate agent will also guide you through the selling price, meeting with potential buyers, going through the negotiation process, and finalizing the sale.
However, if you would like them to handle the meeting with buyers, negotiations, and closing the deal, you can sit out of these parts completely.
Although, if you are still unsure whether or not you want to sell or rent your vacant home, or you're willing to take the chance in a neighborhood that is losing some of its value, then the pros and cons below will help you to decide on your final decision.
The Pros and Cons of Renting Your Vacant Home
As previously stated, if you are still looking to rent your vacant home out to tenants, then the following pros and cons will aid you in your decision.
The Pros of Renting Out
The biggest pro when it comes to renting out your vacant home is that you'll have a second source of income.
This extra money each month will help you pay for the property taxes, mortgage, and utilities unless you are going to have the tenants paying for utilities each month, which is completely your choice.
You can increase the value in your vacant home by having some renovations done for your future tenants, which could end up becoming a future investment if you play your cards right.
Making the Best Decision
Based on the pros and cons listed for you, the decision to either rent your house out to tenants or sell it should be an easy one. By selling, you won't have to worry about risky tenants, keeping up with constant maintenance, squatters invading, vandals destroying the place, and you will not have to pay utilities or a second mortgage anymore, if applicable.
If you choose to sell the house, you will surely have a great deal of weight lifted off your shoulders. Sure, the process of finding a buyer and closing the deal will be long and somewhat stressful, but things will be much easier once you do.
However, if you do decide to rent out your vacant home to tenants, just be sure that you know what you're doing, you are careful with who you choose to rent the home out to, and always stay on top of maintenance and repairs.