When you’re facing a PCS move or you’re relocating out of state for work or family reasons, you’ll need to decide what to do with your house. There are a couple of things to consider when you’re weighing your renting vs. selling options.
Whether you rent or sell will depend on a number of things, and a Columbia, SC property management can help you work through the challenges of each potential outcome.
To Sell or to Rent - Timing
First, how long do you want to keep your house? Answering that questions will help you decide to put your house out on the market for sale or rent. If you’re planning to come back to the area at some point, that’s a compelling reason for keeping your house and renting it out. Think about how long you plan to own this home.
To Sell or Rent - Profitability
You also need to think about your financial goals. Do you plan on keeping the house for a long enough time that you’re able to earn a profit on it? You’ll need to know at what point you earn a positive return on your investment, and whether renting it out will result in cash flow for you. If you’re trying to get to your break-even point before you sell, the industry says you’ll get there after you have the house for between five and eight years. So if you have a home that you’ve lived in for three years, and then you rent it out for two more years, you can get rid of it at five-year point, and you should break even. If you want to make a profit, keep it a little longer. Most of your mortgage and interest is going away when you hold onto it, because you’ve kept the house longer. And, if you rent out the property, your tenant can contribute to paying that mortgage for you.
If you’d like to talk more about how to sell or rent your house when you’re leaving the area, or anything pertaining to property management in Columbia, SC, please contact us at Empire Property Management Group