When selecting a real estate or property management company, you have to ask yourself if you want to rent or sell your property. Whatever your reasons for either choice, you have to do what is best for you. Every landlord and every situation is different.
Market Conditions Matter to Your Decision
It’s always important to look at market conditions when making a decision to rent or sell your property. Is the market at a peak or is it struggling at rock bottom? You need to look at the equity you have in the property and how much you are going to walk away with if you sell. You’ll also need to know what you can reinvest. If the market is in a decline, is it a good time to sell? If the market is going to rise again soon, is it a good time to buy? You need to weigh all the options you have based on the market when you make your decision.
Focus on Honest Accounting
Go through an honest account of what to expect from your property, particularly whether it’s going to be cash flow positive or cash flow negative. Look at your rent and factor in vacancy, maintenance, management costs, and other expenses. You’ll want to include the costs of your principal, interest, taxes and insurance. This will give you a good idea about what to expect from renting and selling. You don’t want to lose money, and you certainly cannot run a property at a loss for very long.
Consider Other Investment Opportunities
If you are moving out of the area or investing in other things, will keeping a mortgage on the investment property in San Leandro affect your application on a loan in another state? Or, will the rental history you have increase your income when you apply for another property loan? You need to figure out what your long term objectives are and determine if having a current property will affect your future property.
Are You Ready to Rent?
You must always ask yourself if you are ready for the responsibilities of managing a property should you choose to rent it. Dealing with tenants and maintenance requests takes time. You’ll have to collect rent and stay compliant with all local, state, and federal laws and regulations. Hiring a good property management company can defray much of the hassle and save you time and money, but there is still a lot to the process when you’re a landlord. It’s a good idea to go over all the details to be sure this is something you are ready and willing to tackle. Though it has its benefits, it is also a lot of work to keep your cash flow in the positive. Regardless of whether you decide to rent your property or sell your property, at Civitas Property Management, we are here to help. We’d love to sit down with you and go over all of it so you can make the best decision for you. We have a great network of vendors that can help get your property ready for either scenario. If you have any further questions about renting or selling your property, please feel free to contact us at Civitas Property Management.