Sell or rent my house, which one do I choose?
Sell or rent your house. This is the most common doubt that owners have when they decide to contact us.
Here at Geräh Real Estate Partners, we can help you find the best option in the real estate market in Spain, especially in Madrid, and that is economically and emotionally profitable.
In this article we will start by telling you the story of two owners and how we helped them make the best decision. Then we will address the advantages and disadvantages of renting or selling your house, flat or chalet and we will end with a table with which you can begin to deliberate.
On the same street in Madrid this week we have helped two owners to make the best decision on how to manage their residential property. Both cases were similar.
The first was about a married couple who had been living in their apartment for more than 30 years and had decided to move to something smaller and more central because they no longer lived with their children.
The second case was also an older couple who no longer lived with their children, whose house was now to large for them to take care of.
The Emotional Variable
Making a decision about whether to rent or sell requires analyzing many factors and not only the numbers count.
The emotional connection to the wonderful moments and shared memories plays a valuable role in making a decision such as this one.
Here at Gerah Real Estate Partners, we know how important it is to listen, understand, and help make the best decision for you.
It is never worth putting our profits before a customers satisfaction with the decision that they make. We promise to treat your house with the same respect of our own homes so that we can build trust and a long lasting relationship.
What were our recommendations and what did we decide?
From the point of view of investment, we could surely see that selling or refurbishing these large flats and buying smaller ones was a good idea.
After giving the owners time to think and holding another meeting, we decided to rent their houses to other families for the time being.
Although it was not the best decision in economic terms, it was in emotional terms. At the end of each meeting, the owners felt happy an relieved with the decision made.
To help you make a decision of this type, we recommend weighing the advantages and disadvantages of each decision. Using this compare and contrast method is a simple yet powerful tool.
Advantages and disadvantages when selling or renting your house
Let’s quickly review the most obvious and not so obvious advantages and disadvantages when doing a real estate transaction.
Advantages of selling a house.
From an economic point of view, selling your house instead of renting can bring certain advantages, especially if you need or are looking for liquidity to buy another house, invest in another business, or settle a debt.
It is recommended that the home has appreciated over time and the real estate market val es it at a much higher price than the purchase price, thus obtaining greater profitability and profit.
It can also be taken into account that you save all the long-term expenses involved in maintaining a home. If the house was inherited by several people, many prefer to save themselves the headache, sell the house, and share the profits with their heirs.
Disadvantages of selling a house.
If you are one of those who invests for the long term, I recommend that it is best not to get carried away by the temporary situation and think about the needs you may have in the future. Always have a strategy in mind for any possible scenario.
You must take into account the price evolution of your property in the real estate market. If the price is not favorable to you, it is advisable to think of another strategy where you can achieve greater profitability.
Selling a house also involves a whole bureaucratic process, which if done wrong, can be very expensive, but with good advice, this disadvantage disappears.
Advantage of renting a house.
Putting your home up for rent can bring advantages. One of them is the convenience and security of a steady income with each monthly payment. If you are worried that the tenant will not pay the rent, you can count on our Integral rental management service in which we guarantee the collection of your rent on the 5th of each month, whether the tenant pays or not.
Another advantage of renting is that you keep your assets, which allows you to take actions that may be favorable to you in the future. For example, you still have the option to keep the house as collateral to pay a debt or pass it down to your children.
Disadvantages of renting a house instead of selling.
The disadvantages of renting, in a nutshell, are having to deal with managing the rental. Bad management can lead to poorly behaved tenants or tenants that become problematic as a reaction to inadequate management. A poor performance as a landlord can even bring you legal problems.
So is it better to rent or sell?
The best way to answer this question is to do a comprehensive analysis of the house, the market, and your personal finances while also taking into account your personal aspirations.
A real estate company like Gerah Real Estate Partners will always maximize your advantages and minimize the disadvantages. It is our job to take away your headaches, make the process more bearable, and save you management costs.
At Geräh Real Estate Partners, we have prepared this table where we show some advantages and disadvantages of each management to help you decide: Sell or rent?