๐ƒ๐ž๐œ๐ข๐๐ข๐ง๐  ๐–๐ก๐ž๐ญ๐ก๐ž๐ซ ๐ญ๐จ ๐‘๐ž๐ง๐ญ ๐Ž๐ฎ๐ญ ๐จ๐ซ ๐’๐ž๐ฅ๐ฅ ๐˜๐จ๐ฎ๐ซ ๐€๐ฉ๐š๐ซ๐ญ๐ฆ๐ž๐ง๐ญ?

๐ƒ๐ž๐œ๐ข๐๐ข๐ง๐  ๐–๐ก๐ž๐ญ๐ก๐ž๐ซ ๐ญ๐จ ๐‘๐ž๐ง๐ญ ๐Ž๐ฎ๐ญ ๐จ๐ซ ๐’๐ž๐ฅ๐ฅ ๐˜๐จ๐ฎ๐ซ ๐€๐ฉ๐š๐ซ๐ญ๐ฆ๐ž๐ง๐ญ?

Figuring out what to do with your apartment when you’re ready to move can be a big decision. Should you sell it and use the money for your next adventure, or keep it as a rental to build long-term wealth?

It’s a question many apartment owners face, and the answer isn’t always straightforward. Whether you’re curious about the potential income from renting or worried about the responsibilities of being a landlord, there’s a lot to consider.

Let’s walk through some key questions to ask to help you make the best decision for your situation.

Is Your Apartment a Good Fit for Renting? Even if you’re interested in becoming a landlord, your current apartment might not be ideal for renting. Maybe your co-op limits rentals, or you’re moving far away, so keeping up with the ongoing maintenance would be a hassle, the neighborhood isn’t great for rentals, or the apartment needs significant repairs before you could rent it out.

If any of this sounds like it might apply, selling might be your best option.

Are You Ready for the Realities of Being a Landlord? Managing a rental property isn’t just about collecting rent checks. It’s a time-consuming and sometimes challenging job.

For example, you may get calls from tenants at all hours of the day with maintenance requests. Or you may find a tenant causes damage you have to repair before the next lease starts. You may even have to deal with people falling behind on payments or breaking their lease early. Investopedia highlights:

“It isn’t difficult to find horror stories of landlords troubled with more headaches than profits. Before deciding to rent, consider talking to other landlords and doing a detailed cost analysis. You might find that selling your apartment is a better financial decision and less stressful.”

Do You Have a Good Understanding of What It’ll Cost? If you’re thinking about renting out your apartment primarily to generate extra income, remember that there are additional costs you’ll want to plan for. As an article from Bankrate explains:

  • Mortgage and Property Taxes: You still need to pay these expenses, even if the rent doesn’t cover all of it.
  • Insurance: Landlord insurance costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.
  • Maintenance and Repairs: Plan to spend at least 1% of the apartment’s value annually, more if the apartment is older.
  • Finding a Tenant: This involves advertising costs and potentially paying for background checks.
  • Vacancies: If the property sits empty between tenants, you’ll lose rental income.
  • Management and HOA Fees: A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.

Bottom Line To sum it all up, selling or renting out your apartment is a personal decision that depends on your circumstances. Whatever you decide, taking the time to evaluate your options will help you make the best choice for your future.

Make sure to weigh the pros and cons carefully and consult with professionals so you feel supported and informed as you make your decision. Feel free to reach out to me for expert advice.

Work With Julian

Julian is in the top 8% of brokers nationwide, which demonstrates his exceptional skills and knowledge. With over 20 years in the business, and 200 apartments sold, Julian has a wealth of experience and knowledge to offer his clients. Contact him today so he can guide you through the buying and selling process.

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