Hello August!
We’ve officially made it to the heart of summer and there’s still plenty of sunshine, events, and opportunities to enjoy across the Peninsula and beyond.
Whether you're soaking in the last days of summer with your family, exploring new neighborhoods, or just getting curious about your next real estate move, I wanted to pop in and share some exciting updates and resources.
First, don’t miss out on the many family-friendly events happening this August throughout San Mateo County, including National Night Out, concerts in the park, and more. It’s one of the best times to be out and about in our amazing communities.
Second, let’s talk strategy. If you’ve been wondering what to do with your current property especially if you’re moving, upgrading, or exploring a new market—this month’s article dives into one of the biggest questions I hear:
Should You Sell or Rent Out Your Home? Here's What to Consider Before You Decide
If you’re preparing for a move, whether it’s across the Bay or across the country, you may find yourself at a crossroads: should you sell your current home or hold onto it as a rental?
The answer? It depends. Your financial goals, the local market, and how involved you want to be in property management all play a role. Here’s a breakdown to help you make a confident, informed decision.
Key Questions to Ask Before You Decide
1. What could your home realistically rent for?
If rental prices in your neighborhood are strong, the income may offset your mortgage (and possibly more). Just be sure to account for insurance, taxes, maintenance, and potential vacancies.
2. Do you need the equity for your next purchase?
If selling your home unlocks the down payment for your next property, that might be the clearest path forward. But if you can swing both, holding onto the original property might offer long-term upside.
3. What’s happening in the local market?
If home prices are surging, you might want to take advantage and sell. But if the market is cooling and you expect a rebound in the coming years, renting could give you time to ride the next wave up.
4. Are you coming back—or is this a permanent move?
Renting may be ideal if you’re moving temporarily and plan to return. You’ll have a tenant maintaining the home while you build equity in both properties.
5. Would your home make a strong rental property?
Location, condition, and nearby amenities make a huge difference. Proximity to transit, schools, or walkable town centers can keep your rental attractive and minimize vacancy.
The Real Costs of Renting
While rental income can be attractive, here are a few ongoing costs to factor in:
Repairs and maintenance: You’ll need a financial cushion for emergencies like water heaters or roof leaks.
Landlord insurance: This replaces standard homeowners coverage and comes at a higher cost.
Vacancy periods: Finding the right tenant takes time and you’ll be on the hook for the mortgage in the meantime.
Property management (optional): Hiring a manager reduces your workload, but typically costs 8–12% of monthly rent.
The Costs of Selling
Selling isn’t cost-free either. Consider:
Commissions and closing costs (often 6–9% of the sale price).
Pre-listing repairs or cosmetic upgrades.
Staging and professional photography.
Potential buyer concessions, such as paying for a home warranty or repair credits.
Reasons to Rent Your Home
You’re planning to move back later.
You want to build equity in two properties.
Your market has strong rental demand.
You expect home values to climb.
Reasons to Sell Your Home
You need the cash for your next down payment.
You’re moving out of the area permanently.
You want to avoid the hassle of managing a rental.
You’d rather cash out now while the market’s strong.
What About Rent-to-Own?
Rent-to-own can be an alternative for sellers in slow markets. It allows a tenant to lease your home while working toward a purchase—often with a portion of rent going toward the sale price. This approach can give you steady income and an eventual sale.
The Bottom Line
Every situation is unique. If your home has strong rental potential and you’re ready for the responsibilities, it could be a great long-term investment. But if you’re ready to cash out, simplify, or make your next move financially possible, selling might be the right call.
Not sure what makes the most sense for you? I’m always happy to talk through your goals and crunch the numbers with you—no pressure, just guidance.
Curious what your home could rent or sell for in today’s market? Let’s set up a quick chat.
- Data provided from a recent Article by Redfin