Relocating or upgrading to a new home often means you have an "extra" home to deal with. While few people would argue that having a spare home is all that bad, many people choose to sell their house when moving into a new one. However, did you know that selling that spare home could mean you lose money?
Depending on when you sell your home and the market conditions during the sale, it might make better financial sense to turn your current (or soon-to-be-former) house into a rental property! If you risk a loss on the sale of your home, choosing to rent it to tenants could generate more profit for you over time—especially in an area like Philadelphia!
As an expert Philadelphia property management company, we know that not everyone loves the thought of becoming a landlord. There's no way around it: managing a successful rental is plenty of work! If you have kids, you know they already spend most of their time buried in Instagram and video games. Becoming a profitable landlord on your own means saying goodbye to what little family time you do get!
If the idea of having to manage a rental property (in addition to your new home) is what's keeping you from experiencing the many benefits of an investment property, this is the blog for you! While owning a rental property automatically makes you an investor (that's a great title to add to your growing list of accomplishments), you don't have to manage your property on your own.
'When Should I Sell?'
Sometimes selling your home is the best option. The only way to know is to run the numbers, then think about what you want from the property. Your former home has asked plenty out of you over the years—it's your turn to consider how it can give back.
Rental Analysis Can Tell You If It's a Worthy Investment
If you don't know what you're missing out on, selling your home can seem like the best option. However, the best way to get a look at the numbers behind your property's worth is to work with a professional Philadelphia property management partner before deciding to sell or rent.
With a rental property analysis, you'll see your current home through the eyes of an investor—not a homeowner. We all think our choices for decorating the guest bathroom back in 2003 were great—a rental analysis will tell you if they actually were.
With your rental analysis, a property manager can show you:
- How your house compares to similar rental homes in the current market
- How much money you could generate each month with your Philadelphia rental
- If upgrades could help you make more money (and the best upgrades to consider).
A property manager will also handle the day-to-day management of your property to take away the hassles of owning a rental home. Working with a property manager who offers you flat-rate pricing (like Rentwell's OneRate™) is even better when it comes to securing your financial future!
Make Sure You're up for It!
Selling a house does mean you can move on from it. While a property manager makes it easy to turn your home into a rental for long-term investment income, if your cash flow needs an immediate boost, a sale might be ideal. If you'd rather walk away, or the numbers don't show that your house would make a good investment (turns out those guest bath "upgrades" weren't the best choice), selling your home could be the best decision for you.
Choosing the Investor Way of Life
When your Philadelphia property management expert comes back with a rental analysis that shows steady income in a profitable market, you should consider turning your house into a rental! There are plenty of reasons to become a landlord:
- If you want to ease into the property investment market to support your future retirement, become a landlord!
- If selling your home now would be a financial loss—and you deserve better—become a landlord!
- If the rental market is booming in Philadelphia, become a landlord!
Rental properties are one of the best investments you can make. If you relocate and buy a new home—or it's simply time for you to live in a different home—making your current house into an investment property is a stable way to generate long-term income.
Property Management Means Hands-Free Investing
'But I don't know how to be a landlord!'
Very few people start investing in real estate with extensive knowledge about becoming a landlord. The best part? You don't need to know how to manage rental properties to be a real estate investor! Hiring the right property management means you can become a landlord without knowing anything about finding tenants, setting the right rental rate, or how to handle maintenance for your house as a rental property.
Even if it's not a long-term plan for you, it can be an excellent financial move to generate rental income from your empty home while you wait for market conditions to improve for a sale. Your home doesn't have to be a rental property forever—but you might find you just happen to enjoy that passive monthly income enough to keep your former house as an investment property.
It All Starts With One...
No matter where you move, you can always take advantage of the Philadelphia rental market to keep generating excellent, passive income. Out-of-state investing is easy with an expert Philadelphia property management company!
If you decide real estate investing is the best way to grow your wealth, a property manager can help you add more properties and build your portfolio.
Let Rentwell Help You Decide to Rent or Sell!
The best property managers will help you make the right decision for your financial future because they genuinely care about your success. If your house won't make a good investment property—or the timing is best to benefit from a sale—a reliable property management partner will guide you to the right solution for you!
Let Rentwell help you run the numbers! We love guiding new investors or potential investors on the benefits of rental real estate. We also enjoy helping seasoned investors grow their portfolio—and their wealth. Let's chat about what's best for your financial future!