Most people are hard up for cash and they may well be wondering if it’s a good time to sell their second home to bring in some much-needed revenue. Others warn you to wait out the pandemic for a while longer to get an idea of the future economy.
Hold on to your rental dream
With a second home, you may well be asking the question, ‘should I sell it to bring in extra cash or should I rent it out? Renting, when it’s done the right way, can be a lucrative investment, allowing you to enjoy a steady stream of income.
It’s precisely why services from a reputed property management company can be such a wise move. With more than 30 years of helping owners rent their residential properties, Affordable property management can help you make the best decision. They’re a minefield of useful information with getting your rental property market-ready.
Whether you’re an owner or a renter, they are one of the most trusted property management companies when it comes to accurate rental evaluations, marketing, screening, and repair vendors.
Make some calculations
When deciding whether to rent out your second house or sell it, you have to work out whether the property is producing a positive cash flow for you.
When it’s rented out and you deduct all the expenses connected to it such as taxes, insurance, and utilities, etc you have to decide whether the property will bring in a monthly profit for you or loss? Rental is a great money-spinning idea and it can work, but only if you do the maths and you see that it’s going to profit you.
Also, think about what you would profit from if you sold the property. Property management experts can always help you by guiding you through knowing whether to sell or rent your second home.
Buyers want to physically view homes
Covid-19, in spite of the vaccines, is still a leading cause of death in the United States. True, it is still possible to list your home, but it may benefit you to hold onto your home a bit longer.
Many people want to physically view a home and not view it virtually. You can’t risk having people walking in and out of your home. You may have a hard time finding a suitable buyer if you try to sell now. Remember, too, that if you are battling financially and feel compelled to sell your second home, there are still banks in the US allowing clients to pause their mortgage payments.
Now isn’t the time to incur maintenance debt
Unless you are selling to a buyer who loves the idea of fixing up a home, selling during a pandemic, even when restrictions have been lifted, can be tricky. Most buyers don’t have the inclination or the finances to fix things up, and if your house has somewhat deteriorated, you yourself might not have the means right now to make it market-ready.
Your home is far more likely to appeal to buyers if it is well-maintained. Also, the more buyers you can select from, the better your chances are of not landing up with a high-risk buyer who could back out of the deal because they don’t have the cash. There’s a pandemic raging on and the last thing buyers and sellers can handle now is a pile of debt.
Heightened demand for rentals
Sellers can lose out if a buyer makes a good offer but has built-in contingencies to get out of the transaction later. There are so many tricks and stunts you want to be advised and protected to know exactly what the right move would be with your second property.
There is a huge demand for rental property right now and rental prices are rising. In fact, rent prices have risen 5% in some cities and with stimulus checks and more economic activity as everything slowly re-opens, the demand for rentals is set to grow. People are nervous of an unpredictable future and they prefer renting as opposed to holding onto the property.