Homeowners who are moving out of the San Gabriel area will have to decide what to do with their property. While selling may seem like the obvious solution, there are many good reasons not to sell. The market has been strong but it’s still unpredictable with the pandemic raging on and the economy trying to recover.
There are other options if you don’t want to sell your home. When you’re leaving the area for work or school or some other purpose, consider renting it out.
We know it’s a big decision, and ultimately it depends on your financial situation and your reason for moving out of your home.
Deciding to Sell for Cash and Equity
Selling can help you walk away from the responsibilities that come with owning a property. If you are planning to send your kids to college in the next year or two or you need money to put down a deposit on a new home, selling might give you the cash you need.
Whatever your reasons for needing an immediate sum of money, selling your property can deliver that predictable windfall. If you have enough equity in the home and you know the sales market will deliver the price you want, selling is an easy way to move on.
Deciding to Rent for Income and ROI
There are many financial benefits to keeping your property and renting it out. You’ll likely earn a reliable rental income every month and your asset will continue to appreciate in value, delivering a larger payoff when you finally sell in a year or five years or 10 years.
The rental market is complicated and always shifting in San Gabriel and throughout California. But, there’s a high demand for well-maintained rental homes, and a well-qualified and reliable pool of tenants. Rental prices are high and stable, even with the new rent control laws, and there are plenty of great renters willing to pay top dollar for a nice property. When you can attract and retain great tenants, they will help you pay off your mortgage while your property’s value continues to rise.
Tax Liabilities and Benefits
Don’t forget to factor taxes into this decision. There may be a capital gains tax on the sale of your home, whereas with rental property, you’re able to take a lot of deductions. You can deduct the home’s depreciation, which is pretty generous by IRS standards, and you can also deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. These write-offs help to reduce your overall tax liability.
How to be a Landlord: Use San Gabriel Property Management
Becoming a landlord may not be on your immediate to-do list. That doesn’t mean you can’t rent out your home successfully.
Consider working with a professional San Gabriel property management company. This makes sense for you when you decide to rent instead of sell, and it’s especially important if you’re moving out of the area and you can’t manage the home yourself.
Renting instead of selling leaves you with a lot of options for your investment. We can help. Contact us at ZenPro Property Management.