Should I Rent Out My Home in El Paso or Sell it?

September 25, 2020
Should I Rent Out My Home in El Paso or Sell it? - Article Banner

Deciding whether you want to sell or rent out your property is a very personal decision and there’s no single answer that’s right for everyone. It will depend on your financial situation and your plans for the future. 


Our team talks to investors and homeowners in El Paso who are moving into a different home or leaving the area for work or other responsibilities, and they’re not sure what to do with their property. Today, we’re helping you answer that question for yourself, and standing by to provide any additional tools, resources, or experience that you might need. 


Selling: Consider Short and Long Term Financial Goals and Needs


If you need some immediate cash fast, it’s better to sell your property. Renting out a home can build wealth and earn you incredible profits, but it’s not going to happen right away. You need to settle into a long term investment strategy in order to make real money as a rental property owner. So, if you’re looking for money to use as a down payment on a new home or you want to invest elsewhere or put a child through college right now; selling is better for you. 


When you don’t have an immediate need for the equity that’s in your property, it might be better for your financial future if you rent out the home. You’ll earn some regular cash flow and hold onto your asset while it continues to appreciate in value. Long term investors will earn more by renting out the property. 


Renting: The Value of a Great Tenant and a Maintained Home


As a rental property, your home has the potential to earn you regular income. A property with positive cash flow has higher earnings than expenses. So, if your mortgage payment is $1,000 per month and your taxes, insurance, and other expenses add up to $300 a month and you’re renting the home out for $1,500 per month, you’re earning a bit of cash every month when the rent is paid. Even if you’re breaking even with your income and expenses, remember that there are still several benefits to renting out your property:

  • Your tenant is paying down your mortgage.
  • Your asset is increasing in value.
  • Your tenant is taking care of the property.


If you’re keeping your property well-maintained and occupied with a great tenant who pays rent on time and follows the terms of your lease, a rental will provide income and ROI for as long as you own it.


Renting: Tax Benefits


tax

Don’t forget the tax benefits of renting out a property. 


When you sell a home, you may have capital gains taxes to absorb. However, when you rent out your property, you can protect yourself from a lot of tax liability. Depreciation is a deduction you can take, and you can also deduct the costs of maintaining your home. Professional services like property management are also tax-deductible. 


There are also some emotional elements involved. If you can’t bear the thought of someone else living in your home, it might be better to sell it and move on. If you think you might return to the El Paso area at some point in the future, keep it so you have a place to live when you come back. 


If you’re worried about renting out the home because you don’t want to be a landlord, there are plenty of outstanding property management companies in El Paso. You won’t have to worry about the headaches and hassles that come with rental property ownership.


We’d be happy to talk through these issues with you, and to figure out the solution that will make the most sense for your bottom line and your peace of mind. Contact us at Century 21 Haggerty Property Management. 

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