Sell or rent my house, which one do I choose?
This is the most common doubt that owners have when they decide to contact us and want us to advise them to 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 help 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.
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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: the house had become too big for them.
The Emotional Variable
Making a decision about whether to rent or sell requires analyzing many factors and not only the numbers count. Emotions are important, because these are houses that have great sentimental value, where wonderful moments have been shared and are full of memories.
For the real estate advisor, the most important thing is to listen, understand and help make the best decision from an ethical point of view. It is not worth putting your profits first. Being ethical allows you to build trust and create long-lasting relationships.
What were our recommendations and what did we decide?
From the point of view of investment, we could surely see that selling these large flats and buying smaller ones was a good idea. Or even refurbish them to produce more rooms and rent them out as student residences, for example.
After giving time to think and get together again, 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 and relieved with the decision made.
To help you make a decision of this type, we recommend resorting to an analysis of the advantages and disadvantages of each operation. It is a simple tool, but powerful.
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, settle a debt. It is recommended that the home has appreciated over time and the real estate market has given it a much higher price than the purchase price, 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 to several people, many prefer to save themselves the headaches, sell and share the profits with the 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 evolution of the price in the real estate market of your property. 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 secure 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: If you want to inherit the house for your children or grandchildren or use the house as collateral to request a mortgage for another house.
Disadvantages of renting a house instead of selling.
The disadvantages of renting, in a nutshell, is having to deal with managing the rental. Bad management can bring you problematic or badly behaved tenants, or good tenants who, due to bad management, deteriorate the relationship for not playing the role of landlord well. A poor performance as a landlord can even bring you legal problems.
So is it better to rent or sell?
The real disadvantage is not doing a complete analysis of the house, the market and the finances, always taking into account your personal wishes and aspirations.
A real estate company like ours will always put weight in the balance of the advantages. It is our job to take away your headaches, make the process more bearable and save you management costs.
We invite you to learn more about our Integral Rental Management services by clicking on this link
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?
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