Should I Rent or Sell My House?

Are you moving and unsure whether to rent out or sell your current house? At C&C Property Management, we understand this is a big decision. Whether you're relocating for a job, looking for more space, or hoping to take advantage of a strong market, you’ll need to weigh your options carefully. Even when interest rates are rising, rental properties can still prove to be a profitable investment. In this blog, we’ll walk you through what to consider before deciding to rent or sell your home.

Know Your Goals

Don’t make blind decisions! Do your due diligence first to know what it is that you want, and then lay a blueprint to achieve it. Below are a few things to keep in mind in this regard.

Earning Passive Income

Would you like to become a landlord and generate potential passive income? If this is something that has been on your mind, then ensure that the math adds up. In other words, determine whether rental property ownership would be worthwhile from an ROI point of view.

To calculate the property’s expected ROI, you’ll need to estimate its potential rental income and expenses. Ultimately, for the investment to be valuable, the rental income will need to exceed the expenses.

Property Taxes Implications

Know the tax implications should you choose to rent out or sell your house. These are usually a percentage of a property’s value. The more valuable the property is, the more taxes you’ll pay and vice versa.

Check with your local municipality to know how much property taxes you’ll be paying on the property as a landlord. However, should you decide to sell the property instead, then you’ll need to pay capital gains tax. The amount to pay is dependent on the length of stay and whether or not you are single or married.

Financial Implications of Owning Two Homes

It’s possible that you may not be ready to either rent or sell your house at the moment. However, in such a case, you’ll need to carefully weigh the financial implications of holding onto two properties at the same time.

This is because owning two properties will mean doubling the associated expenses. Examples of the expenses include property taxes, mortgage payments, insurance, repairs, and maintenance.

Understand the Prevailing Market Conditions

Before deciding, take time to understand the current market conditions. In a seller’s market, selling may be more profitable, while a buyer’s market might make renting the better choice. 

Seller’s Market

This is where the demand for a home exceeds the available supply. This means that selling a home in such a market could give you a distinct advantage, allowing you to dictate the terms and prices.



In such a market, it may be worthwhile to list your home for sale. However, the same could be true for renting it out. When available homes are few, people are usually forced to rent rather than own them because of the higher prices. As such, in a seller’s market, it may also make sense to rent out your home because of increased rental demand.

Buyer’s Market

A buyer's market condition is where the market favors a home buyer. It’s the opposite of a seller’s market. And this means that selling your home during this time may not be worthwhile.

You may want to hold onto it by renting it out until the market conditions improve.

Know the Cost Implications

Regardless of whether you choose to rent or sell your home, each option comes with its own set of costs. If you decide to become a landlord, here are some common expenses to expect:

• Landlord Insurance: You’ll need a specific insurance policy to protect both yourself and the rental property.
• Taxes: Rental income must be reported to the IRS during tax season.
• Property Management Fees: Hiring a property manager comes with service fees.
• Vacancy Costs: When your property is vacant, you'll cover costs like utilities and marketing until it’s rented again.
• Repairs and Maintenance: You’ll need to handle ongoing repairs to keep the property in good condition and attractive to tenants.
  
  

If you choose to sell your home instead, here are some typical costs you may incur:

• Marketing Costs: Expenses related to advertising the property.
• Real Estate Agent Fees: Commission paid to your listing agent.
• Staging Costs: Preparing the home to appeal to potential buyers.
• Repair Costs: Fixing any issues to make the property market-ready.
• Closing Costs: Fees associated with finalizing the sale.

Expect these to take about 10 percent of the total price of selling the home.

What Options Do You Have If the Home Doesn’t Sell?

If the market conditions are right and you can sell the home at a great price, then by all means go for it. However, if it won’t sell for whatever reason, then renting it out can be a great option for you.

Being a landlord can be lucrative. You can expect to generate a recurring monthly income, build equity, and take advantage of numerous tax deductions. What’s more, you can enjoy all these benefits while waiting for the market to improve so you can sell. And the best part is that you could hire a property manager to do it on your behalf.

Bottom Line

The decision to rent or sell your house isn’t always straightforward. It requires careful research, financial planning, and a clear understanding of your long-term goals. That’s where C&C Property Management comes in. If you're unsure which path to take, our team is here to help you make an informed, confident decision.

As a full-service residential brokerage based in California, we offer expert guidance tailored to your unique situation. For homeowners considering renting, we provide everything from tenant screening and lease preparation to rent collection and maintenance coordination. 

We’ll walk you through the pros and cons of becoming a landlord so you can feel confident every step of the way.