As the demand for short-term rentals is on the rise, more and more people are using Airbnb and HomeAway to make a profit. Sure, the flexible pricing is attractive, along with the fact that you won’t be stuck with bad tenants over an extensive period of time, which unfortunately happens sometimes in traditional renting. However, before listing your home on such platforms you should consider if that is the best strategy for your real estate property in the long run.
Unsure About Renting Vs. Selling Your Home?
The most important thing to establish, when selling or renting out a property, is whether the property will produce a positive cash flow.
If you are renting out a property, and are still making a profit, after deducting all the expenses such as taxes, mortgage, utility bills, etc., then, it makes more sense to rent it out. Otherwise, you could consider the second option – selling it.
However, before you make that major life decision, be sure to weigh your options based on the current real estate market trends.
- According to reports, rents have increased in the majority of the largest cities in the US in comparison to previous months.
- Renting is still the favored option in high-priced markets.
- Thanks to the new tax law, owning a home in high-tax and high-price places became even less affordable than before. These changes, on top of the rising prices, makes renting a safer financial decision than buying.
- High rents and student debt loans also hinder young households from saving up a down payment even if they can afford the monthly mortgage. Furthermore, the prices are rising so fast that even a small increase in mortgage rates can pose a serious financial problem for the household.
- In the near future, it seems that inventory will take up slightly. After all, it is only logical that the current situation is temporary. Prices cannot rise faster than salaries for all time.
- Another optimistic sign is that new construction is more focused on single-family homes, which are built to own in contrast to apartments, which are typically built to rent.
- Millenials were slow to enter the housing market, but as an increasing number of them settle down and have families they are buying homes at rates equal to the generation of their parents. What is more, single millennials are more likely to own a home than prior generations of singles.
- Home prices should be on the rise again this late spring in Florida, New York, Boston, San Diego, Houston, Miami, Seattle, and California.
Renting or selling soon? Start on the right foot by finding the best real estate agent to help you.
Now you have already considered the current real estate market trends, along with your unique personal preferences and circumstances. Whether you are more inclined to rent out your property or sell it, make sure to choose the right real estate agent for professional advice. It will make the world of a difference and once you make the decision, an agent who is the right fit will run the whole process smoothly.