Owning a rental property in Visalia comes with several benefits, such as financial growth and long-term security. However, there may come a time when you must relocate or move from your current location for some reason. In such situations, you may find it overwhelming to decide whether you should sell your existing property or rent it.
Both selling and renting a property has its advantages and disadvantages. While selling the property offers short-term gains, renting assures a positive cash flow in the long run. Consider the following factors before you choose to sell or rent your home in Visalia.
Your Financial Goals
Your decision to sell or rent a property should depend on your financial goal. If you are seeking immediate liquidity and don’t have enough savings to maintain your property, selling is a good option. For instance, if you want to make a new investment and need money, you can raise capital immediately by selling your existing property.
On the other hand, if you can handle tenancies and are looking for long-term profits, you can lease the property as it can provide you with recurring income and additional financial security after your retirement.
Current Market Scenario In Visalia
Consider the current market scenario before selling or renting your Visalia property. Every real estate market is unique. The home prices vary according to market trends, location, and demand for rentals.
The median home prices in Visalia have increased by 28% over the last year. The current rent value here is $1502 for an apartment, and 26% of household units are renter-occupied. Selling your property can give you a lump sum amount. But if rental prices are likely to increase in the future, renting your property can give you better long-term returns. Also, you can cover your monthly expenses such as a mortgage, maintenance charges, insurance, and more from your rental income.
Your Willingness to Be A Visalia Landlord
Owning a rental property comes with lots of responsibilities. You have to manage multiple tasks simultaneously, such as tenant screening, rent collection, addressing tenants’ issues, maintenance, and inspections. Take the time to decide whether you can and want to tackle all these responsibilities. If you are not sure about being able to manage your property while moving out of the town or state, consider selling it or at least hiring a property manager to handle your work.
Your Potential ROI As Compared to Other Rentals
While renting a property, you need to conduct in-depth research about the current market trends and rental values in your location. If your property is equipped with modern amenities and services, renting the property for long-term ROI makes sense. You can inquire about the rental prices charged in your neighborhood and charge rent accordingly.
Condition of the Property
It is necessary to decide whether your property is an asset or a liability before you sell or rent it out and this is primarily dependent on the condition of your property. If your property is in good shape, located in a popular neighborhood, and does not require frequent maintenance, renting is a good option.
However, as a landlord, you need to maintain the structural integrity of your asset, which is difficult, especially for out-of-state investors. You can hire a property management company to track monthly maintenance issues and conduct regular inspections of your property.
Deciding whether to sell or rent your property is not easy. It is good to take a second opinion from a financial expert or property manager before jumping to a conclusion.
The Equity Group is a leading property management company in Visalia, also serving Tulare, Hanford, Lemoore, Dinuba, Reedley, and Porterville. We can assist you in making the right decision and profitable choice for your Visalia home.
For more information, contact us at The Equity Group.