Renting out your property is an excellent alternative to selling it, especially if you’re having a problem finding a buyer or the sales market won’t support the price you’d like to ask for the home. Most homeowners don’t think about renting out their home as an option, but it’s something you should consider.
Renting is a good idea because you can earn rental income in the short term, while you hold onto your asset and allow it to increase in value. If you have been trying to sell your property but you can’t, renting it out might be the best solution while you wait for the market to continue improving. You might end up seeing this as the best financial decision you’ve ever made, because you get to preserve your property and hold onto it as an investment.
If you’re worried that you don’t know the rental laws and you don’t think you’d make a very good landlord, hire a property manager. We will take care of everything for you, including direct deposits of rental payments into your account. Property management does not cost a lot, and it can effectively help you earn more on your rental property.
Renting out your home instead of selling it is also a sound investment strategy. Even if you are just close to breaking even, you’re going to come out ahead when you hold onto your property. By investing just a few hundred dollars a month into your house, you’ll have quite an investment nest egg saved up after 20 or 30 years. At Abacus, we like to think about rental revenue after your mortgage has been paid off as a pension. The money your home is worth combined with the rent you’re collecting is like having a pension and a 401K. It also makes sense to diversify your investment portfolio. You don’t want to have everything in the stock market because it can be a lot riskier if you don’t diversify your investment portfolio.
If you’d like to talk more about whether you’re in a better position to sell or rent out your home, please contact us at Abacus Avenue Property Management in Hoboken, NJ. We’d be happy to help you make a good financial decision.