15 Reasons You Should Rent Your Property in 2023

Whether you need to relocate for a job, a relationship, or family needs, or you just would like a different house, selling the home you are in now does not have to be a foregone conclusion.

Many homeowners planning to move have not considered the idea of finding tenants, so “rent out my house.” seems like an unusual proposition. However, many homeowners discover that renting their property is an excellent solution to the problem of selling a home.

You may be asking, “Why should I rent my house?” That is a fair question and is well worth your time spent weighing your options. Here are 15 reasons why you should rent your house in 2023.

1. High Demand

In quite a few areas, homes to rent are massively sought after. You may find that your house will be snapped up quickly by renters eager to have the space that comes with a house. Many people prefer a single-family home over an apartment, especially if they have children.

You will find that if your home is in an urban area, a luxury area, or near a university, demand for your house as a rental could surpass what you have dreamed possible. Economic growth in a particular area is another indicator that you should be able to find tenants without much effort.

2. Your House has Popular Amenities

Seeing the value in what you have through another’s eyes is a tremendous ability. The features you overlooked may be the answers to the question, “Why would anyone rent my property?” Nearly all potential renters are interested in an area that has a low crime rate, ample parking, and is close to shopping.

The most popular features differ based on whether you have long-term or short-term renters interested in your property.
If you have long-term renters viewing your home, they will usually come with expectations and must-haves that are similar to those of home buyers. Details like proximity to schools, as well as the quality of the school system, rank high on long-term renters. Other essential factors that catch the eye of potential tenants include,

• Distance to jobs
• The convenience of public transportation
• Condition of appliances
• How well do you maintain the property
• Size and maintenance of the lot

If your potential residents are looking for the short term, they will often focus on different qualities such as,

• Number of bedrooms
• Swimming pool or other luxury amenities
• The amount and proximity of green spaces
• An amazing view
• Al Fresco areas for entertaining
• Pet-friendly policies

3. You Have a Strong Emotional Connection to the Home

It is likely you already understand the depth of attachment that is possible to have for a home. For a great many people, their home is a vessel holding years (or even a lifetime) of moments that have shaped them. So, when it comes time to let that home go, it causes considerable angst. In this type of situation, keeping the home and renting it can be an excellent idea.

4. Your Property Shows Potential for Strong Capital Growth

Look at your current home in a similar way you would consider an investment property. If you have a home that shows the likelihood of offering you an economic windfall, renting it is a brilliant move. If you are not sure about the economic potential or feasibility of growth, consulting an expert in the real estate field will help clarify where your home falls as far as the likelihood of growth and profits.

5. You are Comfortable with the Position of Landlord

On paper, the landlord/tenant relationship details seem well-defined. However, in practice, things rarely go as smoothly as they do in principle.

Some key considerations are why and where you are moving. These factors substantially affect how comfortable (and successful) you would be as a landlord.

6. Your House is in Excellent Condition

If your home is free from any flaws requiring expensive fixes or making the residence uninhabitable, renting is a solid idea.

7. You Can Afford to Get Your New Home without Selling Your Present Property

Not everyone who wants to keep their house and rent it can finance a new place to live without the money received from selling their present home. Meeting with an expert in the field is a smart idea if you are unsure how your finances break down.

8. The Amount of Rental Income is Enough to Cover the Property’s Expenses

The amount you will make from a tenant should pay for expenditures such as the mortgage, taxes, maintenance, and repairs. Unless you can afford to lose money, you should avoid the situation where keeping the home will put you in the red. If this is the case, renting can work out well for you. For more information specifically on the logistics of rental properties, check out the guides by R&W Investment Sales.

9. Your Taxes are in Order

You should ensure that you have adequately considered the effect that renting your house will have on your tax situation. Plan on speaking with a qualified advisor who is experienced with your type of situation, even if you believe you are making good decisions. An unbiased opinion can save you a significant amount of money and frustration. Remember, any profits made from renting are taxable income.

10. The Ownership of the Home is in Order

This is frequently an issue that comes up when making decisions about the family home. If siblings share ownership of a property, even if they are not actively involved with the potential sale or rental, you will need everyone on board to make any moves.

11. You are Planning a Temporary Move

Often if a property owner will be away for an extended but temporary time. They may be going to work in a foreign country or being contracted to work for a few years in another city, and they may think, “I should rent my property while I am away.” This can often be an ideal choice. The property owner does not need to be concerned with selling a house. At the same time, when they are ready to come back, they can relax, knowing there is a place for them.

12. You Have Good Options for a Property Manager

Even though property managers can charge between 8 to 12 per cent of your rental income, many people find their services worth every penny. Property managers are essential if you have relocated a significant distance from your former home.

13. Your Cash Flow is Sufficient

You will plan and consider renting versus selling your home from many angles. However, your choice may come down to whether you have enough cash flow to cover the cost of your decision.

14. You Have a Mortgage that Works Well in Your Situation

The lines between investment property loans and home mortgages are increasingly blurry. You will want to be sure you have the best product. Ensure it will support you in accomplishing your personal, investment, and financial objectives.

15. You Have a Gut Feeling This is Good

While it is true that you do not want to make major life decisions based on feelings, seizing an opportunity with confidence is an excellent position.

Deciding to rent your house rather than putting it up for sale is an idea that offers flexibility and the chance to test the waters of managing property. The process can sometimes seem confusing, which is why you need to work with an experienced advisor with your best interest at heart.

At Zest Realty, we connect with our clients to understand their needs and help meet them. Whether this is your first foray into renting your property or you have a portfolio full of successful transactions, our professionals will help you plan a profitable strategy to rent out your property. Feel free to contact us about renting out your home or other services we offer.