Although there is no right or wrong answer, renting can be more advantageous than selling. There are pros and cons to both options that should be considered, based on your own personal situation. Before making a decision, factor in current market conditions, budget, return on investment, taxes, and personal involvement/responsibility. Our team at CENTURY 21 Prudential Estates (RMD) Ltd. is here to share some of the top pros and cons of renting and selling.
Reasons to Rent Your Property
As previously mentioned, renting your property can be a good alternative to selling, if financially possible. Renting allows you to gain an additional income, while (hopefully) covering your rental property expenses. One of the first steps we recommend is totalling your monthly or annual expenses for the property. This includes mortgage payments, property taxes, insurance, and strata fees (if applicable). Also consider budgeting for maintenance, improvements, and savings. Compare the monthly or annual property expenses to the estimated rental income you will receive in the current rental market. If the majority of your property expenses are covered by the rent, it may be worth considering renting your property rather than selling, as there are tax advantages.
In a buyer’s market, renting may be a better option than selling. This is because there is a higher supply of properties for sale on the market than there is demand (individuals looking to buy). Consider renting your property until the real estate market conditions improve and are more favorable. Another advantage of renting your property is access to equity. Pulling equity from your rental property gives you access to loans with lower interest rates, such as a home equity line of credits or mortgage refinancing, which can be beneficial for future improvements, investments, or purchases.
Reasons to Sell Your Property
If renting your property is not financially possible, selling is an ideal alternative. Selling during a favourable market can result in a higher purchase price, fewer negotiations, less stress, little need for renovations or repairs, and more money in your pocket. Rental property management involves property maintenance and upkeep, risk assessment, tenant management, financial planning, and communication, which can take up a lot of time. This can be overwhelming for some individuals, as even with a rental property management company, the owner has the ultimate responsibility and should be involved in the decisions made regarding the property.
How We Can Help
Our team at CENTURY 21 Prudential Estates (RMD) Ltd. is here to help guide you through whatever decision you make. We offer full-service rental property management and strata property management, as well as residential real estate sales services for all your real estate needs. Let our brand power and local expertise work for you! Call (604) 278-2121 to speak with one of our Rental Property Managers or Realtors® about the advantages CENTURY 21 has to offer when renting or selling your home.
