Should You Rent or Sell Your House?
You might consider renting your house to temporarily rent out if you are a homeowner looking to move. A short-term rental (STR), is a popular alternative to a hotel and an attractive investment option. A Harris Poll survey found that 28% of homeowners are open to the idea of renting their homes for a short-term income. However, you might find it difficult to accept the responsibility of managing one. Here are some challenges you might face if your house is rented out instead of being sold.
A short-term rental comes with responsibilities
It takes hard work to rent and own a house. You need to think about your ability to commit to renting a house, especially if you are going to advertise it on a rental platform. It takes a lot of effort to meet the requirements of most of these platforms. Bankrate recently published this article:
“Managing a rental property is time-consuming and difficult. Are you handy enough to do some repairs on your own? Do you have a list of reliable contractors you can call on in an emergency? Consider whether you are willing to take on the additional responsibility of being landlord. This includes screening tenants and handling issues. Or, if you prefer to hire a third party to do it.
There are risks associated with renting a short-term property. Investopedia warns:
“Risks of hosting include renting out your place to rude guests or damaging property, complaints from neighbors and possible regulatory violations depending upon your location.”
Before you decide to make your house a short-term rental, there are many things to consider. It might be wiser to sell if you aren’t ready for all the work involved.
Your house may not be ideal for your rental goals
It is not always possible to rent a house as a short-term rental. The location of your home is a major factor. You should expect fewer renters to request your home if it is not a popular tourist destination. This can have a negative impact on your bottom line. The National Association of Realtors (NAR), has this article:
“When it comes down to the viability and profitability of profitable STRs. . . Consider factors such as location, amenities, and appeal. People seek STRs near their vacation destinations, so it is important to be close to attractions. The property should also be able to accommodate a wide range of travelers.
It is smart to research the market and find out how much rental income your area receives throughout the year. Also, what their business numbers are and how they compare to your goals.
Bottom Line: Converting your home to a short-term rental is not a decision you should take without doing your research. Talk to a local realty advisor today to determine if selling your home is a better option.
Members: Sign in now and get your personalized posts! Click Here to learn more about KCM’s newest feature, personalized posts.