You've Remodeled, Now What? Deciding Whether to Sell or Rent Out Your Home

When you first bought your fixer-upper, you may have started the renovation process with a specific outcome in mind, like selling your home. But now that the renovation process is complete, maybe you’re reconsidering utilizing the property as a source of passive income. When deciding whether to rent or sell, you’ll want to make a careful analysis of the pros and cons of each option. Here are some tips to get you started, courtesy of BRG Real Estate.

Points to Consider While Remodeling

If you’re still in the process of remodeling your fixer-upper, you know that it’s important not to over-improve, regardless of whether you decide to list or lease. For example, if you’re thinking of selling, you don’t want your remodel to raise your home’s value significantly above the median sales prices of other local homes.

Renovations for Leasing

If you’re renting, some of the same projects apply, but others, such as adding a new fence, can also be a good feature for pet owners and enhance a property’s privacy, increasing the property value in the process. Costs will depend on materials, size, and your location. You can search for local contractors, making sure whoever you hire is licensed, insured, and has knowledge about underground utility lines. 

Renovations for Historic Homes

Many fixer-uppers are also historic homes, which require slightly more care and attention to detail. The unique fixtures or finishes that make the home unique are also what make it appealing during resale, so you’ll want to exercise care to ensure they aren’t changed or removed during the renovation process. You’ll also want to familiarize yourself with local district rules for renovating an older home, as some areas may require pre-approval from a City Council or Preservation Society before proceeding. 

Points to Consider Before Leasing

Is your property in a high rental area or a vacation hotspot? If so, renting may be the most lucrative choice. Areas with booming job growth and college towns may also be good locations for long-term renting, while beach destinations and tourist hotspots will be particularly lucrative for short-term rentals.

But even if you do live in a high rental area, you’ll want to consider the responsibilities of being a landlord before making your decision. Are you handy, or do you enjoy DIY projects? Being a landlord often means attending to your rental’s appearance, making fixes or repairs as needed.

You also want to run the numbers to see if you would be cash flow positive each month, after paying any mortgage, property taxes, and insurance. Another factor to keep in mind while deciding is whether you can charge enough rent in relation to the home’s value. You’ll want to know the gross rent multiplier or the ratio of the price of real estate to the rental income generated. In general, experts agree that a GRM should be between four and seven to be considered healthy.   

Marketing Your Property

Whether you’re planning to rent out your home short- or long-term, you’ll need to list and market your property. There are a variety of sites where you can list your rental property and advertise its amenities. You can also utilize social media to market to potential tenants. Be sure to take appealing photos of your pro=perty to post on social media. You can also do yourself a big favor by using online tools to help. For instance, if you search for a banner maker, you’ll find this free program that allows you to use customizable templates to help you get the word out!

Consulting With a Seasoned Professional

While a variety of factors are taken into consideration when deciding whether to rent or sell, the choice ultimately depends on how much you’ll earn from selling versus renting long-term and whether the rental income is worth the work and money involved. 

Let BRG Real Estate, the top realtors in Myrtle Beach, help you make your dreams a reality! Reach out today to get started

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