Deciding whether to lease or sell your home can be a complex process. I recently went through this very dilemma, and for those of you facing a similar crossroads, I’d like to share the key factors we considered in the decision-making process.
Benefits of Leasing
- New Income Stream: Leasing your home can provide a steady source of income, which is especially beneficial if the rent covers your mortgage payments.
- Your Home as an Asset: By leasing, your home transitions from being a liability to an asset, potentially allowing you to take out a second mortgage.
- Flexibility with Timing: If your home needs renovations or repairs before selling, leasing can buy you the necessary time. However, managing renovations with tenants can be challenging.
- Tax Advantages: Landlords often enjoy tax deductions for repairs, travel, insurance, and interest.
Drawbacks of Leasing
- Added Responsibilities: As a landlord, you are responsible for maintenance and tenant management.
- Increased Liability: You must ensure the property meets all current codes and regulations.
- Financial Risks: Vacancies mean you have to cover all the bills, and missed tenant payments directly affect your finances.
- Maintenance Calls: “Hello, our dishwasher stopped working…we need this fixed right away!” As the owner, you are responsible for addressing any issues that arise promptly.
Considering Selling?
When the market is strong, selling might be the better option, especially if you can secure a price above market value. Selling is also a smart move if you need immediate funds for another home or investment.
Making the Right Choice
Ultimately, the decision to lease or sell your home depends on current market conditions and your personal goals. I’m help you make the best choice for your situation. Schedule your strategy call today.
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