The real estate sales and rental markets in Lakewood and surrounding Colorado communities are strong, and if you’re a homeowner wondering whether you should sell a property you’re leaving or rent it out, we can understand the dilemma. On the one hand, it might be nice to cash out of your investment and move on with some money in the bank. On the other hand, you might find higher earnings in the long term if you hold onto your asset for a few more years.
Whether it’s more advantageous to sell your property or rent it out depends on your investment goals, your current financial situation, and your level of interest in renting out a property to tenants. You’ll need to walk through the numbers and decide what it would mean if you sold your home right now or held onto it for a few years and rented it out.
Let’s take a look at some of the most important factors to consider.
Will You Ever Need this Property Again?
If you’re moving out of the area, consider whether you plan to return. If you’re relocating for work or school or because your remote work situation is looking more permanent, you’ll have to consider if you’re leaving forever or just for a few years.
The Lakewood real estate market will likely continue to grow and buying something new in a few years might be more expensive than it is now. So, holding onto a piece of real estate may be in your best interest.
However, if you’re planning to leave the area and you have no interest in keeping the house for yourself or a family member in the future, selling it might be a good way to tie up all loose ends in the local region.
How Does the Market Look?
When you’re deciding whether to sell or rent, you’ll have to consider both the sales market and the rental market. If you can sell your home for the price you want, it’s worth considering. However, if the sales market is slow and rents are on the rise, it might be a better idea to hold onto the property and rent it to tenants until the sales market recovers.
Reasons to Sell: Cash and Convenience
Most owners are eager to sell their home, especially in a strong sales market. Selling a home provides a profitable short-term bump in your financial security, especially if you have a lot of equity in the home and you can get the right price. If you’re looking to liquidate an asset so you can access cash for other things, selling is a good idea. Don’t wait for the market to turn down. Maybe you want to invest elsewhere or you need to send a child to college or you’re buying another home and you need a down payment. Whatever your financial reasons for wanting to access money – this is a good way to do it.
Selling your property also allows you to walk away from the investment free and clear. If you’re leaving the Lakewood area and you know you’ll never be back and you don’t want any ties to the region, it’s better to sell the home now.
Reasons to Rent: Long Term Returns
Savvy property owners who are interested in long-term investment income know that it’s better to hold the property. The longer you own this asset, the more it will be worth to you. While you’re renting it out, your tenants are contributing to your mortgage and covering all the expenses associated with owning a home. They’re paying the utilities and they’re keeping an eye on things and helping you maintain it.
When you rent the property out, you can also access several tax benefits that aren’t available to you when you sell. There’s no need to worry about how you’ll find tenants, maintain the home, and stay up to date with all the laws and requirements associated with renting out a property. Professional Lakewood property management companies are available to help you. Experienced investors know that property managers are not only good at caring for your property; they can also help you earn more and spend less on your investment.
If you are trying to decide whether it’s better to rent or sell your home, we can help by looking at your unique circumstances and discussing your specific goals. Contact us at Assured Management, Lakewood property management experts serving residential landlords in West Denver and the surrounding areas, including Littleton, Golden, Wheat Ridge, Arvada, and more.
