Should I Sell My Albuquerque House or Keep It As A Rental?
Tracy, we’ve been getting a lot of people asking this question, and so we want to answer it and put a video out on it. And that is I’ve got a home I’m thinking of selling, but I’m also thinking maybe I should just rent it. And so let’s go through some of the pros and cons of that and what people should be thinking about.
Tracy
Sure. So some of the pros right. We’ve seen houses appreciate greatly over the last few years, and maybe you want to hold on to that house and have it keep appreciating and have somebody else pay you while it’s appreciating.
Tego
Right.
Tracy
And if you have an underlying mortgage, they might be paying it off for you while you’re doing something else for your living.
Tego
Yes. There’s a lot of good financial reasons to do that, not for everybody. So you need somebody to help you evaluate that. That’s something we can do. If you’re interested, we’re the Venturi Group with Keller Williams here in Albuquerque. So just reach out to us. Tracy, if you are going to be renting your home, one of the things you need to consider is, is it allowed? For a couple of different ways. One is, does your mortgage allowed? If you have a mortgage, you need to check on that. Also, are there neighborhood regulations, CC&Rs or HOA rules that might disallow it? You nit iseed to check that as well.
Tracy
And the CC&Rs and the HOA rules Tego could vary between short term rental and long term rentals. So there’s a lot of people who want to do short term rental these days, and that might be a little bit harder to find neighborhoods where that’s allowed. So long term is usually pretty okay, but obviously check with the rules.
Tego
So, Tracy, what are some of the other reasons?
Tracy
Well, you know, if you’re moving and you think there’s a chance you might need to move back again, you might want to hold on to that house and rent it out. We’ve seen that a lot. Job change, life changes, people move somewhere else, and then they want to go back and they want to be where they were. So that might be another reason to rent out your house.
Tego
Some financial reasons, that’s my deal, is obviously the income from cash flow, right. The rental income, money coming in. There’s also tax advantages to having a rental property. You can depreciate the asset. There’s also you’re building equity over time, and somebody else is helping you pay down that mortgage that you have on the property. All of those things you need to, especially the tax and some of the implications there. You do need to talk to your accountant and your CPA about that’s our disclaimer there.
Tracy
Right. So not everybody is meant to be a landlord Tego right.
Tego
Yeah.
Tracy
So you might want to hire a property manager, which might cost a little bit of money. Right. They usually take 10% to 15% of the rent to manage the property for you, but then it’s managed for you. There are other possible downsides to renting out your house. You could have it vacant for a while, while you’re waiting for a new tenant. There could be damage to the house. You have to still keep up the equipment and make sure it’s working properly. But overall, there’s lots of pros and cons.
Tego
Yeah, absolutely. And really what it comes down to, whether it makes sense for you or not to convert your home into a rental property, it just has to be right for you. And so if you want any help picking some of these questions, just reach out to us again with the Venturi Group, Keller Williams Realty. You can reach us at 505-448-8888 here in beautiful Albuquerque, New Mexico. Thanks for watching. Take care.