It’s definitely a dilemma and sometimes a tough one to resolve. Should I Sell or Rent My Townhouse in Reno Nevada?
Of course, for every townhouse owner and every situation, there is no best answer across the board. The situation, needs and expectations of everyone are unique. So you can ask yourself a few questions below to determine what’s best for you.
Should I Sell or Rent My Townhouse in Reno Nevada?
Will it produce enough cash flow?
The first step in answering “Should I Sell or Rent My Townhouse in Reno Nevada?” is to do the math. If you consider renting, you have to determine whether the property produces a positive cash flow. You can get an free and accurate Rental Value Report here.
Will there be money left over after you deduct all monthly expenses from the rental payments? Ensure that all expenses are taken into account – utilities, mortgage payments, taxes, insurance, management costs, vacancy costs, repairs, HOA dues, and others. After you do the math, and you see that there is a small profit being made, then selling your townhouse might be a better option for you.
Even if you are only making no to little amounts of profits, it still might be a good option for you to rent your townhouse. So keep in mind that a long time term investment could be right for you. If you have any question on how to maximize your rental, contact me today.
Will I get a return on my investment?
Next, you have to consider investment return (ROI). If you choose to sell your townhouse, you will lose about 10 percent off the top of the sale price at closing costs, agent fees and other sales costs. Then you have to consider whether the property has appreciated and the health of the current market in order to determine whether you will exceed the original sale price.
If you will be paying out of pocket or making very little, it may be better to hold on to the property and rent it for a while, especially if this could provide a decent cash flow.
Am I prepared to deal with tenants?
You must be brutally honest about your readiness and willingness to be a landlord when you try to find the best answer to the question “Should I sell or rent my townhouse in Reno Nevada?” To put it mildly, dealing with tenants can sometimes be unpleasant.
Some tenants are happy to deal with, while others require a lot of time, patience and persistence – no matter how well you vet them in advance. And yet, sometimes others destroy the place they rent, which requires you to repair.
However, if you’re willing to make the effort, you can learn the ability to be a landlord over time. If you don’t want to, but still want to rent, you can hire a professional property manager. It will cost you some, but the stress of being a rental property owner will be greatly reduced. But if these options don’t appeal to you, then selling might be your best bet.
What are the current market conditions and long-term outlook?
The current market and long-term outlook for the area in which your property is located is a primary consideration. You will need to look at the demand for similar properties in the area. You will also have to determine the value of comparable properties (if you want to sell) and the average rent for comparable properties (if you want to rent).
You will also have to check the property values movement. Are they getting better or falling? If property values increase, you may want to hang on to your townhouse and rent it to give it time to appreciate. If values fall, you may want to sell while you can still make a profit before the market falls below that point.
So, should you sell or rent in Reno, Nevada? These questions will hopefully help you find the best answer for your unique situation.