Updated January 11, 2022
When it comes to deciding whether to rent or sell a home, there are a lot of factors to consider. Some Atlanta homeowners might find that renting their home is more profitable in the long term, while others may find that selling now is the better option.
Through our more than 40 years of combined real estate experience, we've learned that there's no right or wrong answer to that question, but it's a common question (and an excellent one).
Many property owners prefer to sell a former home and move on to their next adventure. Other homeowners are open to the idea of becoming a rental property owner and the benefits of investment property income.
An important question to ask is, 'What's the best move you can make for YOUR needs?' A sale can be easier in certain situations, and becoming a rental property owner brings the potential of making rookie mistakes—without reliable, trustworthy help.
Before you decide on a sale or move to convert your property into a rental home, consider these insights from an experienced Metro Atlanta property management company.
When You Should Sell Your Former Home
In some cases, selling your property in Atlanta is clearly the best option. There are many excellent reasons to sell a house, but make sure the conditions make good financial sense before putting your home on the market. When the following conditions apply, a sale will likely benefit your financial needs better than converting your spare home into an investment property.
Let's look at some of the reasons why a property owner might want to sell a property and take the profits.
When the Market Is Favorable
When the market is favorable for sellers — that is, when there are more buyers than homes available on the market — it's generally a good idea to put your house up for sale. In this type of market, sellers can usually command the asking price (or more) and sell quickly.
- In a seller's market, available housing inventory is low. The market has more buyers than homes for sale, and buyers don't have a lot of room to negotiate on the price of a new house.
- Sellers can often command the asking price (or more) for a home and sell quickly when the market is in their favor. As a property owner, it's always strategic to use this to your advantage!
So if you're thinking of selling your property, make sure to keep an eye on the market conditions! If you are unsure about the current state of the market, consider talking to a real estate agent or one of the best residential property managers who know the local market and can tell you whether the time is right now or if you should wait.
You Don't Want Long-Term Income
Some homeowners want the immediate cash of a sale instead of income over time through a rental property when it's a better fit for their financial goals. If you need the income from a sale to put into your next home purchase—and smaller increments of income over time just isn't your style—it's probably best to sell your property and enjoy the profits now.
However, if you're looking for lasting wealth and are willing to wait, investing in rental properties is a sound strategy. Not only will you receive monthly payments in addition to any appreciation in the property value, but you'll also have the tax benefits that come with rental properties. And, if done correctly, you can hand off many of the management duties associated with owning.
You're Ready to Move On
Turning your home into a rental means, you're tied to the new rental property for as long as you keep it. As the property's owner, you're responsible for maintenance and paying the mortgage and taxes for the property—even once you transition to your new home. This sudden workload becomes apparent when you lack support from a dedicated and experienced residential property management company.
Carefully managing property maintenance requests or seeking long-term renters alone can be too much to bear for a property owner moving across town—let alone out of state! Some homeowners are simply ready to move on if they relocate for work or decide to grow into a large home.
When You Should Consider a Rental Property
When is transforming your home into a rental house and becoming a property investor more beneficial? As a skilled provider of best-in-class property management services, we can tell you there are many excellent reasons to become a property investor—starting with the home you're leaving behind.
For starters, you'll have the potential to make significant profits in the long run. You'll also have the ability to provide top-tier property management services to tenants, who will appreciate the high level of care and attention they receive. Even if you aren't a handyman or even want to take care of the daily tasks of property management, working with one of the best property management companies can make this part of owning an investment property a breeze.
Finally, you'll be able to build a valuable real estate portfolio that will serve as a foundation for your future financial security.
When the Market Isn't Ideal
The opposite of a seller's market is a buyer's market. When this happens, more homes are available for sale than buyers who need new homes. Buyers have more leverage to negotiate prices, and homeowners lose when a deal becomes final.
It can be more profitable to keep your home and generate long-term, monthly income in a buyer's market. Even if you eventually sell the house, your home makes money as a rental while you wait for the Atlanta real estate market to improve and home prices to increase again. When the real estate market is down, the rental market in our area can be the right move!
You Want to Start a Portfolio
When you're looking to get into real estate investing, it's essential to know that it doesn't take a lot to get started. All you need is one investment property in the Atlanta area to get your portfolio going! And if you're already a homeowner, it's easy to make the transition over to rental properties when you partner with a professional property management service company.
A property manager helps you determine the ideal rental rate for your property. and take care of every task required to generate income from it. This includes things like tenant screening, rent collection, and property upkeep. With a property manager on your side, you can relax and enjoy the benefits of real estate investing without having to spend your nights and weekends working on your rental home.
Here are a few of the things that are included with the best property management services:
- Complete turnkey service to make your home renter-friendly and competitive in the market
- Finding high-quality renters and smoothly managing rent collection
- Always being on-call for maintenance and repairs
- Delivering your income on time.
You can move on to your next home and enjoy a hands-free way to generate income from your new property. The right property manager implements an expert plan for worry-free results, backed by exceptional service.
So if you're looking for a hassle-free way to own and operate a great investment property, be sure to work with a property manager.
Let Local Teams in the Atlanta Area Help You Decide
When deciding whether or not to sell your home and transition into a rental property, it's crucial to weigh all of your options. In this blog post, we've outlined some of the key reasons why you may want to consider becoming a property investor in today's market.
If you're still on the fence, it's always wise to seek expert insight when deciding what to do with a house you no longer need. Compass Property Management Group can analyze your property's potential and guide your most profitable options in the Atlanta market. If you decide to turn your home into a rental, we're here to help.
Our Metro Atlanta property management team understands the importance of providing the highest economic value while delivering best-in-class service. If you're not sure what to do with your home, contact us for our FREE research-driven rental analysis!
There's no obligation to explore the long-term income you could enjoy from your home before trying to manage the stress and taxes of a sale.