Should I SELL or RENT my property?
Thinking of upgrading to a bigger home, but can’t decide if you should sell your current property, or rent it out as an investment property?
CAN YOU AFFORD TO KEEP YOUR HOME AS AN INVESTMENT PROPERTY?
If you do decide to rent out your home, you will still have your usual rates to pay, plus ongoing maintenance and repairs. With a rental, hot water systems can fail, and air conditioning systems may need work. So provided that these costs won’t stretch you too thin, I would recommend holding onto your home for another few years or so.
CAN YOU AFFORD TO UPGRADE WITHOUT SELLING YOUR CURRENT HOME?
Ideally, the choice to maintain your property and rent it out will still allow you to upgrade and afford the home you want. Sometimes by selling the property you could borrow an extra $100,000-$200,000… so maintaining your home and renting it out may reduce that capacity.
IS BEING A LANDLORD FOR YOU?
If you find you can afford to keep your home as an investment property, consider whether you have the time, patience, and desire to manage your rental yourself, or if you’d like to hire a property manager to do it for you.
Some of the most important tasks of a landlord (or property manager) are:
- Finding a reliable tenant that pays rent on time and maintains your property.
- Collecting and lodging the correct tenancy bond.
- Conducting regular routine inspections on the property.
- Organising prompt maintenance and/or repairs on the property.
- Ensuring all legal paperwork and documentation are filled out correctly and signed (e.g. tenancy agreements, property condition reports, inspection reports, repair requests etc).
If you work full-time and have a family, you may find it difficult to give your tenant and rental the time and commitment it needs - it totally depends on your circumstances, and head space.
If you’d like more information on how one of MY property managers can help you protect your investment, feel free to get in touch with us to discuss your individual needs. With second to none industry knowledge - our years of experience is the difference.