One question we get a lot is whether people should sell or rent their residential property in the Tampa Bay area. Many times, you get transferred out of the area for work or you might end up inheriting a house that you’re not sure you want to keep. Determining whether it’s better to rent or sell depends on a number of things. These three considerations are the most important factors that can help you decide.
Take a good look at the expected market value for a sale or for rent. Right now, we’re having a very positive market for both in Tampa. In addition to property value, you must consider the expenses that you’ll have continuously as a landlord. There will be rent coming in but you’ll have taxes and insurance costs, potential HOA fees, as well as the costs for keeping up with lawn care and your pool, if you have one. There will be property management fees and leasing fees and you will also be required to maintain the property. We recommend budgeting about one percent of your property’s value to be spent annually on the home’s upkeep.
Local Market Conditions
When deciding whether to sell your property or become a landlord, it’s important to consider the local market, specifically the neighborhood where the property is located. Find out if there is anything going on that will improve or decline the area’s popularity.
If you think you want to hold onto the property and rent it out, assess your knowledge of landlord tenant law. You’ll also need good communication skills. Decide whether you have the temperament to be a landlord. Then, you’ll have to decide if you want to manage on your own or hire a professional property manager. Take good care in choosing a property manager because we are not all equal. Look for designations from the National Association of Residential Property Managers (NARPM) such as CRMC® and MPM®.
If you’d like to know more about the benefits of renting or selling a home in this area, please contact us at Berkshire Hathaway and we’ll give you more information.