Should You Rent or Sell Your Home? It Depends!
Many homeowners reach out to me as they debate whether to rent or sell their home when relocating. The answer really depends on your financial position and long-term goals. Here are some key factors to consider when making this decision.
Why Renting Might Make Sense
For many homeowners, renting can be a smart financial move. Some originally planned to hold onto their property as a rental to build long-term wealth. Others benefit from historically low mortgage rates secured during the COVID era, making their monthly payments more affordable. This lower mortgage cost often allows them to generate positive cash flow in today’s rental market.
When Selling Is the Better Option
On the other hand, some homeowners find themselves considering renting because they can't sell for the price they want. This is especially true for those who purchased in 2022 or later, as their home may not have appreciated enough to sell without a loss. To make matters worse, these homeowners often have higher mortgage payments, which can put them in a negative cash flow position if they choose to rent.
While rental properties offer benefits like long-term appreciation and tax advantages (consult a tax professional for details), the key question is: Can you afford to cover the shortfall between rent and expenses each month? A small negative cash flow of $100 per month might not be a dealbreaker, but I frequently speak with homeowners who would be spending $800–$1,000 each month to cover their mortgage, HOA fees, taxes, and insurance. In these cases, selling—even at a loss—may be the best financial decision.
Making the Right Choice for Your Situation
Ultimately, whether you should rent or sell depends on your personal goals and financial position. If you’re unsure, I’m happy to provide a free rental analysis and walk you through the process. PMI Georgia manages over 500 rental properties across metro Atlanta, primarily single-family homes. We specialize in helping first-time landlords navigate the rental process and would love to assist you.
Get started today! Request your free rental analysis at pmigeorgia.com.
