An important question to ask when your home no longer meets your needs is whether you should SEll or Rent it? Here are a few points to consider:
- Are you allowed to rent out?
Those living in condos or homeowners associations might be subject to community bylaws prohibiting or limiting (to a certain length of time, for example) their ability to rent out their properties. Even if such bylaws don’t apply to you, you should check your mortgage documents and municipal regulations to be sure of your rights.
- Are you able to afford owning more than one property?
Talk to your mortgage lender. If you need your current home’s equity to buy your next home (or for other reasons), the obvious answer’s no. Ask your real estate salesperson for an estimate of what you’d pocket by selling, so you can weigh that figure against what you’d bring in through rental income after paying for expenses including maintenance and insurance.
- Does it make real estate sense to hold on to current property? How is the market for that area? or for the future?
Again, talk to your real estate sales representative. They can tell you whether properties comparable to yours are declining or increasing in value and what local demand for rental properties like yours is – factors that will be hugely influential in your decision to sell or rent.
- Can you handle being a landlord? Is it better to get a Property Manager?
Discuss all the pros and cons with your real estate salesperson, your lender and your legal counsel.