When you buy another property and need to move, you are left in a dilemma of whether you should sell the old one or rent it out. The move may be caused by different factors such as a change in your working location or even the need for an upgrade. You can decide to keep both homes and benefit from them or sell the old one.
Keeping the old house can generate income for you if you choose to rent it. However, this does not necessarily have to work in your favour, therefore, the need to consider all the factors. First, ask yourself if the property can generate the flow of cash. Do some calculations by deducting all the expenses such as utilities, repairs, vacancy, and management to evaluate if you will be making a profit or incurring a loss if you decide to rent out the property. You can avoid a loss by selling the property instead.
You should also put into consideration the investment returns that you can get from selling the property. Remember that you must lose some sales expenses such as agent fees when proceeding with the transaction.
Try to assess what you would make from the sale so that you can determine if you should hold on to it till the market improves or sell it immediately. You can hold on to your property and sell it later if you can get some cash flow from it in the meantime. You can sell it immediately if you are sure that it gives you a high investment return.
Look into the future when trying to determine if it is best to sell your property or rent it. Predict what the future looks like based on the location of your property. Do you see an improvement in the value of your property in the future or a decline? You should sell the property now if the future does not look promising.
You can gauge the market movement by looking at how the city is either growing or stagnating. Trends in the market such as the growth of business around the property can help you when it comes to predicting the future. Analysing such trends can help you make wise decisions on whether to sell it or rent it out.
The last consideration is asking yourself if you are ready to deal with the challenges of being a landlord. This responsibility is not meant for everyone though you can learn how to be one if you are willing. Tenants are not always the same since some may be easy to manage while others may give you problems. If you are not up for the task, and you have considered all the other factors, you should sell the property.
Alternatively, you can decide to rent it out and hire a property manager to act as the landlord on your behalf. The Hawaii real estate gives you the liberty of keeping your old and new house. It is upon you to choose whether you would like to rent it or sell it. Do this by considering the factors that we have discussed as you weigh your options.