Deciding to Rent Out Your Home

In some situations and locations, the decision to rent out your house, rather than to sell it, may be a financially advantageous move. When considering whether to rent or sell your home, there are several points you will want to thoroughly consider before reaching your final decision.

You Can Charge What You Need

If you decide to rent your home, you can choose (within reason) what you will charge in rent. When considering what you should charge in rent for your home, there are several financial obligations you will want to consider. Primarily, you will need to cover all the costs / expenses of your new residence.

Additionally, renting your home will make you a landlord, and so you will need to charge enough in rent to cover any maintenance or repairs that your tenants may need.

Loss of Tax Benefits

In some situations, renting out your home may mean that you are no longer exempt from capital-gains taxes. If you have been a landlord for three or more years, you will owe capital-gains taxes on any profits you have gained on your home since you bought it.

You Have to Be a Landlord

This could be a positive or negative attribute depending on what your personality is and whether or not you're willing to invest the time and effort it takes to manage a rental property.

Not only will you face financial responsibilities in this role (ie. maintenance / repairs) but you will also have to devote time to managing your property and working with your tenants. You may have to deal with late night or weekend calls over problems or questions that may arise.

Renting or selling a home is a significant decision, and you should speak to a real estate professional to ensure that you are making the best decision for you and your family. If you or someone you know is considering buying or selling real estate in the Austin area, contact the Austin real estate agents of the Carvajal Group today by calling 512-419-7770.