Should I sell or rent my Southside home?
First let me say that either way you go, might be the right answer. There isn’t only one good way. Different strokes for different folks, and each person’s situation calls for different solutions…so here are some things to consider while making your decision.
Drawbacks Of Renting Out Your Home
Terrible Tenants.
Every landlord gets one (at least). They don’t pay on time or sometimes not at all. Or they trash the place or cause issues with other tenants.
You have more liability.
As a landlord, you’re responsible for keeping the home a habitable place to live. That means making sure your property complies with building and health codes, is free of pests and other hazards and provides for basic needs.
As the property owner, you may also be liable for incidents that happen on your property, especially if you’re negligent or slow to act on a tenant complaint. Here are a few things you could be held liable for:
- Dog bites
- Personal injuries
- Bed bugs
- Crimes
- Damage to personal property
It’s another job.
Do you have the time for a second (or 3rd) job? The grass needs to be cut, the sidewalk needs to be shoveled. Your tenant lost their keys and can’t get in at 11pm on a Tuesday night, the toilet is super clogged, the basement floods, the dishwasher breaks and on and on we can go. The list of things you need to do is extensive (in time and money), and maybe you’re just done taking care of a second property.
If the house sits empty, you pay.
You’re responsible for paying your mortgage, property taxes and insurance whether you have someone living in the home or not. If you don’t have the money to pay the costs when you don’t have a renter paying them, you could default on your mortgage. The same goes for if you have a renter but they miss a rent payment. You’re still on the hook for the payment that month and your credit will be affected if you miss it.
You don’t want your money tied up in a house.
Many people prefer to hold their wealth in property because it’s a tangible asset that feels more real than buying stocks. That said, real estate is an illiquid asset, meaning that you usually can’t sell it right away. This illiquidity, along with a generally lower rate of return than stocks, deters people from leasing.
It’s a good time to sell.
If the market is healthy and you can sell your home at or above the fair market value and within a short amount of time, you may want to opt for selling your home. If you can make a profit on the home and you’re in a good position to sell, put it on the market.
If you need a solution, and want to sell your home URB Chicago is your answer!
Paying cash for homes in Chicago is what URB does and since 1986, we have been helping people from all walks of life and in all sorts of situations.
Our friendly, professional property specialists have helped make the lives of hundreds of homeowners easier.
From homeowners who don’t want the hassle of selling themselves, or with an agent, to those looking for the quickest way to sell a house that they need to get rid of quickly, and every reason in between, our response is we are ready to buy and able to pay cash right now!
Benefits Of Renting Out Your Home
You have a new source of income.
If you can charge a rental price that’s enough to cover your mortgage payment and associated homeowner expenses (insurance, repairs and current and future upkeep), then leasing your home is a smart way to gain a new stream of income. Don’t forget about saving for that new roof in 20 years, or the months that will inevitably end up vacant due to turn over.
You gain a new asset and lose a liability.
As a rental property, your home will be considered an asset instead of a liability. This means you can take out a second mortgage.
It’s possible to get approved for a second mortgage if your home is reclassified as an investment. A residential property becomes an investment property when the owner leases the property to tenants for at least 1 year. After this 1-year mark, your mortgage lender no longer views your home as a debt but rather as a generator of income and therefore an asset. You’re now able to use this asset as a guarantee against your second mortgage.
You may have an easier time finding renters.
If you’re having a hard time finding people to buy your home, it may be easier to find people to rent it instead. Renters are less picky than buyers about the condition of their residence because their move is not permanent.
You may get possible tax deductions.
As a rental property owner, there are several expenses you can write off on your taxes, which means more money in your pocket. Home repairs, local and long-distance travel, insurance and interest are all items that are either partially or fully deductible from taxes.
If you are interested in a free in-house appraisal to see how much your home is currently worth, fill out the form below and we will connect with you!
Benefits Of Selling your home to URB
For the last 30 years URB has been serving the community by coming along side homeowners to offer valuable cash offers on their homes. We want the community to succeed, so we aren’t the best solution for every situation…but we are a team of people educated in delicate situations, understand the neighborhoods and can explain all of the in’s and out’s of real estate in Chicago. If we can’t help you or we think there is a better option for you, we will connect you with the right people.
If you need to sell a house in Chicago and it is in need of repair, boarded-up, has tax liens, code violations, or a bad tenant? No Problem! We buy in any condition and situation on the westside and southside of Chicago.
Connect with our team by filling out the form above, or give us a call 847-673-7097
We can’t wait to talk!