When you're planning to move out of your home for any reason, your first instinct may be to sell the residence. However, unless you're in immediate need of a large sum of money, it may be better to rent the home out instead of sell it. You may wish to contact a real estate agent in your community and explain your situation. The agent can then suggest what may be the best course of action for you to pursue. Although each situation can be different, here are some times that you might benefit from renting the home instead of putting it up for sale.
You're Taking A Long Trip
If you're planning a lengthy trip — perhaps traveling around much of the world — you don't necessarily need to sell your home. Instead, you may be able to retain ownership but rent it out. This is better than keeping the home empty during your absence, and the tenants you get will essentially be paying your mortgage while you're away. Whenever you decide to return, you'll have a residence lined up, instead of having to begin the process of searching for a home. In this scenario, you'll want to appoint someone trustworthy to handle any issues with the home in your absence.
You're Getting Divorced
Fast access to funds is often needed during a divorce. However, if you and spouse have enough money to pay for legal fees and arrange your individual living situations, you might wish to keep the home and rent it out for a period of time. Doing so can help to continue to pay down the mortgage. If you're close to paying the house off, you can secure renters until that time, and then sell the home and split the proceeds to help you each begin the new phase of your lives.
You're Nearing Retirement Age
If you're getting close to retiring and are planning to downsize into a condo or a smaller home, you might have the financial means to maintain ownership of your current home instead of sell it. If the home's mortgage has already been paid off, which is often the case by the time retirement is approaching, you'll be able to use the monthly rent from your tenants as income rather than just put it toward the mortgage payment. This extra flow of cash can help you either retire sooner or have more money in savings by the time you decide to retire.
For more information, contact local professionals like The Alan Smith Team - RE/MAX Professionals.