The option of selling or renting comes down to a few different factors, including your personality, the functions of the market at the time you need to make your decision, and your own personal investment goals.
First, you need to think about your investment goals and your plans for the property. Is this something you want to keep for a long time while you collect residual income, or do you need to sell it now because you’re moving and need the money to buy a new house?
Rental Market in Salt Lake City
The market will also depend on your personal needs. If you have a three or five-year plan to sell your property but the market is super-hot right now, maybe you should speed up your plans and sell now. Interest rates are likely to increase, which will flatten home values, so maybe it makes sense to sell now. On the other hand, if it’s a super-hot market and inventory is low, rental prices will go up because it’s harder to buy a house. In a bad market, you might be upside down and owe more to the bank than your property is worth. In those cases, it will be better for you to wait and let the market recover. You can rent it out in the interim.
Finally, you have to consider your own personality and potential limitations. When you own a rental property, it’s like owning a small business. This type of investment is not for everyone, and there is risk involved. Know what you’re getting into before you make a decision.
These are just a few things to consider. Discuss them with your property manager, a real estate agent, and your accounting manager or CPA. If you want to talk to us about the options for your Salt Lake City property or anything pertaining to property management in Salt Lake City, please contact us at Rize Homesource.