Americans are renting houses more today than they did in the past. In fact, in 2016, more than 65% of the current American population aged below 35 years live in rented apartments. What does this say about the future?
This trend should interest you if you are contemplating selling your house. The financial sense in case you rent out your home seems to be more viable than selling such a house on a one-off deal.
Americans seem to have varying views on whether renting out a house is more advantageous in the long-term. In this guide, we explain why it’s better to rent out home properties rather than sell them. You can make more money renting in the long run!
1. More Americans Prefer Rent out Home as Opposed to Buying
The current trends in the American real estate market indicate a negative perceptive among Americans regarding the buying of houses. You may have a real struggle finding someone to buy your house at a price that is within your projections.
Conversely, there are more than 70% of the American population willing to rent out such houses on a medium and long- term basis. Renting your house out will guarantee you value for your money without much of a hustle.
2. Real Estate Is Speculative
You will agree with the reality that there is a high likelihood of the market value of your house increases over time. Land and any property attached to it has the tendency to surge in value over time as the various dynamics around such land change.
What your house is worth today may change in the next five years. This may be due to the appreciation of the value of land and fixtures over time. When faced with the choice between selling and renting out your house this consideration must prevail.
From a financial point of view, it is better to rent out such property and earn rent over the next unforeseen period of time. If you save up the proceeds of rent in a diligent manner, you may end up having an equal value of the initial intended selling price.
3. You Still Retain Your Home While Earning from It
Rent income is charged on a monthly basis. This means that when you rent out your home, it is possible to have consistent income over an extended period while still retaining your house. This gives you the freedom to reclaim such a house for other uses in the future.
A rented house guarantees you a steady flow of income. This means that even when you lack a stable monthly income you can rely on the rent. Ultimately, you still retain the title and ownership deeds to that property.
4. Renting Is the Answer to Your Job Fluidity
If you are employed and reliant on a salary, selling that house is a major risk. The job market is fluid, which means that you may end up changing jobs multiple times in the course of your career. Having a fall back plan in such instances is critical.
Your house’ rent may become an important fall to plan when in the course of job transitions. You can utilize this recurrent income over the period of joblessness an aspect that saves you the hustle of being without a regular income.
5. When You Obtain Cash in Bulk There Is a Likelihood of Misuse
Having a lot of money in one go maybe potentially risky for you as an individual because of the tendency to overspend or the safety concerns that prevail. When selling a house, you may need a clear plan on what you want to do with the proceeds of the house. And even in such cases, most of the money may get lost on leisure activities.
Renting out a house will save you such drama. Because you only receive a small amount of money over an extended period of time.
6. You Have Control over Future Rent
If you ever struggled with the decision on whether to sell or rent a house, you may need to consider the following. If you sold the house, it could be based on the current market rate. This means that you have to give in to market demands.
The argument is different when you decide to rent such a house. You have the final decision on the rate of rent and the lease period that a tenant is allowable. You have the right to add both the rate or rent and the period that such a house will be on rent.
7. Be Assured That Real Estate Is a Safe Investment
Investments may be volatile due to the uncertainty that surrounds the financial markets. But investing in a rental house may guarantee you a steady flow of income over a long period of time. Unlike selling that house, renting it out will provide recurrent income while maintaining the cost of the property as the initial investment.
You only need the help of a trusted property management agent to look over your interests.
8. Extra Stream of Income
Imagine a situation ten years from today when you will need an extra stream of income due to the various cash-related needs that you may have. If you sell your car today, ten years from now such a revenue stream will not be available at your disposal.
But if you make a wise move and rent out such a house, this extra revenue stream may guarantee you financial stability while still earning from your regular job.
9. You Can Rely on a Real Estate Manager
Things have changed over time and you do not need to understand the dynamics around tenancy for you to be a landlord. The modern setting allows you the choice of property management services, which help you control all the rental issues pertaining to the house. Contrary to the tedious process of finding a suitable buyer for your house when selling, a real estate manager offers you both convenience and value for your money.
10. There Are Too Many Selling Costs Involved When You Sell
Before closing out on a deal with your prospective buyer, you may end up spending 10% of the value of your house. These additional costs are a result of agent fee, transfer fees, closing fees, and other related sales expenses. These costs are unnecessary considering that when renting you only need a small fraction of your monthly rental income to pay the property manager.
11. You Can Always Move Back to Your House
People make the decision to either sell or rent the property for various reasons. One such reason is due to instances of relocation. Renting out a house due to such a reason, allows you to move back to your own house in case you ever reconsider your previous decision.
Selling your house limits such a scenario from ever happening after sealing the deal.
Rent out Home Properties Is a Good Idea
The desire among Americans to own a home one day in the future is palpable. However, there is a general tendency to lean towards the idea of paying rent in the medium-term regardless of the cost implications.
As a homeowner, this trend may work for you too. If you ever contemplate selling your house, you need to evaluate the alternative, which is to rent out home properties. The advantages of renting that house out are self-justifying.
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