Are you trying to decide whether you should sell your San Jose property or rent it out?
We work with a lot of owners who are thinking about relocating out of the San Jose area, and they aren’t sure what they should do with their homes. There are a few things to consider before you come to a final decision.
Evaluate Your Property Expenses
You have to be prepared for what you’ll spend if you keep the property as a rental home. Calculate what you’ll spend on your mortgage payments, your taxes, insurance costs, and any other expenses that may be included such as landscaping costs, pool maintenance, or HOA dues. Be as detailed as possible so you understand what you’ll spend when you keep the home.
Estimate Your Rental Price
Expenses are one thing and income is another. Determine what you’ll earn in rent on your property. You can use a few different online tools such as the Zestimate feature on Zillow or other rental sites like Trulia and Craigslist. Remember that these are only estimates. You know what the homes are listed for, but you don’t know what they’re renting for. And, you have to remember that there will be differences in amenities, condition, and location. Estimating your rental price based on rate per square foot is a good starting point, but it’s not precise.
Talk to a professional property manager who knows the market well. You can get a free market analysis, which will help you determine what your home might rent for. Don’t imagine a price that’s too high. It’s actually better to be conservative in your estimates so you aren’t disappointed in what you actually end up earning. Many factors can require you to rent your home for less than you expected.
Consider Your Future Plans
Are you planning to move back to the area? Deciding whether this is a temporary or permanent move will impact whether you rent out your property. If you never want to come back to California, selling your home so you can start over elsewhere may be a better plan. But, if you do plan to return, you might want to rent your property out. When you return to the area, it can be hard to enter the real estate market. Buying something new will require a large down payment. Holding onto your asset can help you plan for the future. Either you’ll use the house to live in again or you can sell it when you need the cash to make a new home purchase.
Look for Professional Help
Hiring a professional property management company is a great idea if you decide to put your property on the rental market. It’s critical to have local experts working with you when you aren’t in the area any longer. Your property manager can provide guidance and support, and will handle everything from tenant screening to maintenance. Once you rent out a home, you become a landlord. Unless you know the laws and requirements of California landlords, it’s easy to get in trouble.
We’re happy to help you decide if renting out your property is right for you. Please contact us at Real Estate Connections.