Selling Your House vs Renting It: A Comparison

If you’re planning on moving, you’ve probably thought about selling your house or renting it out. 

There are numerous reasons why selling might be more convenient than renting.Let’s explore five reasons why it would be more beneficial to sell instead of rent your home.

1. No Need to Worry About Repairs & Maintenance

As a landlord, you’ll need to guarantee your property is in good condition and cover the costs of repairs and maintenance. It’s estimated that annual maintenance costs an average of 1.5 times the monthly rental rate.

2. No Need to Pay Insurance

Another expense you can avoid if you choose to sell your home instead of renting it out is the cost of insurance. The national average for home insurance is $2,305. Additionally, landlord insurance covers tenant damages and protects you if someone gets injured on the rented property. Landlord’s insurance can be 15% to 20% more than homeowner’s insurance, according to HouseLogic

3. Get a Better Return on Investment

Many homeowners see having a rental property as an investment; however, in reality, the expenses involved in a rental property are high. Between the mortgage, maintenance, repairs, Insurance, and property taxes, the return you get is usually low.

By selling your home, you can invest your money in something with more value and with a better return, such as stocks and bonds. 

4. Have More Equity

If you sell your home, you’ll have enough equity for a down payment when moving to a different place. Renting would probably require more time to get enough money to move.

5. No Stress & More Free Time

Being a landlord is like having a second job. Advertising your property and doing background checks on potential tenants all takes time, not to mention how stressful and time-consuming it can be to deal with tenants. As the landlord, you’re responsible for responding to emergencies, repairs, and maintenance.

On the other hand, if you choose to hire a property manager, be prepared to pay at least 10% of your rental revenue.

Milwaukee House Solutions Can Help You

If you’re still unsure about what decision to make, we invite you to get in touch with us. One of our associates will provide you with more information on renting your house vs. putting it up for sale. We can also make an immediate cash offer on your home, so you can consider your options.

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