When it’s time to make a move, deciding what to do with your house is a big step. Today, more homeowners are considering renting their property rather than selling. Recent data from Zillow shows that about two-thirds (66%) of sellers thought about renting before listing, with nearly a third (28%) seriously considering it. Compared to 2021, when less than half (47%) of homeowners considered renting before selling, it’s clear that this trend is growing.

So, should you be selling your home to fund your next purchase or keeping it as a rental to build long-term wealth? Let’s explore some essential questions to help you determine the best path for your financial and lifestyle goals.

Is Your Home a Good Fit for Renting?
If you’re moving out of the area, managing a rental remotely could become challenging. Also, consider if your neighborhood is ideal for rentals and if your home needs significant repairs before it’s tenant-ready. If any of these concerns resonate, selling your home with a Tennessee real estate agent may be a better option.

Are You Prepared for the Realities of Being a Landlord?
Renting involves more than collecting monthly rent; it can be time-consuming and stressful. Maintenance issues, tenant concerns, and unexpected repairs can be overwhelming. As Redfin notes, landlords may need to cover expenses like broken pipes, HVAC repairs, and more. If you’re not ready for these potential headaches, selling may be the right choice.

Do You Understand the Costs?
If renting appeals to you for passive income, remember that it comes with added costs:

• Mortgage & Property Taxes: You’ll still need to cover these, even if rent doesn’t fully offset them.

• Insurance: Landlord insurance typically costs around 25% more than homeowner insurance.

• Maintenance & Repairs: Expect to allocate at least 1% of the home’s value annually for upkeep.

• Tenant-Related Costs: Advertising, background checks, and vacancies all impact cash flow.

• Management Fees: Property managers typically charge around 10% of the monthly rent.

What Is My Home Worth?
If you’re curious about the value of your property, tools like a free home value estimator or a sell-my-house calculator can help you gauge your home’s market worth. When selling a house with a realtor, like a Cookeville, TN realtor from The Real Estate Collective, you’ll have the added advantage of expert advice on pricing and market trends.

Bottom Line
Choosing to sell or rent out your home is a personal decision. Weigh the pros and cons carefully and consult with professionals to feel informed and confident. Cookeville TN realtors and Tennessee real estate agents can provide valuable guidance, especially in the Upper Cumberland area, as you navigate this important decision.