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Whether you should rent out your home or put it up for sale.

Posted by Brian Burds on Thursday, February 2, 2023 at 2:05:46 PM By Brian Burds / February 2, 2023 Comment

Whether you should rent out your home or put it up for sale.?
How to Decide If You Should Rent or Sell Your Home |

Ready to make a change but not ready to sell your home? Consider renting it out for a few months instead. In recent years, there has been a rise in the number of people looking to invest in short-term rentals (STRs), which are properties that serve as an alternative to hotels. A Harris Poll found that 28% of homeowners have considered using a rental service to rent out their home temporarily for extra cash.

While the thought of owning a short-term rental may be appealing, the responsibility that comes with it may be too much to bear. If you decide to rent out your home instead of selling it, you may encounter some of the difficulties listed below.

Some Duties Attached to a Short-Term Lease
It takes effort to be a successful landlord. Consider your ability to make such a commitment before signing up for a service that will publicize your rental listing. Most of them have demanding specifications that hosts must fulfill. According to a recent article published on Bankrate's website:

“Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”

Time and money aren't the only costs associated with owning a short-term rental; there are also potential risks you'll need to consider. According to Investopedia,

“Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.”

There is a lot to think about before making the commitment to turn your home into a vacation rental. If you aren't prepared to put in the effort, it may be better to sell.

Perhaps your home isn't the best fit for your intended rental purposes.
Not every home can be turned into a lucrative vacation rental. A major consideration is the neighborhood in which you live. Lessening the likelihood that your area will be a tourist trap will reduce the number of inquiries you receive from potential tenants. According to the NAR's article, you should:

“When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.”

Researching the going rate for rentals in the area, as well as the average number of bookings per year, and comparing this to your expectations, is a smart move.

In conclusion
It's not a good idea to dive headfirst into renting out your home on the short-term rental market without first doing some investigation. Let's talk about whether or not selling your house is the best option for you right now.

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