If you’re in the process of downsizing your home for retirement and trading in your larger property for a low-maintenance condo or a smaller house in a better location, you’ll face the decision of what to do with the home you’re leaving behind. Maybe you’ve inherited a property from a parent or family member that you don’t want to live in yourself, but you’re not quite ready to sell it.
This is an outstanding opportunity to hold onto the asset and earn some rental income on it.
Today, we’re offering some solutions to owners who find themselves wondering whether they should sell their property or rent it out. If you’re downsizing your home, talk to an LA property management company like EGL Properties.
Property Management Los Angeles: Deciding to Buy or Sell
When you need cash right away, selling is a good option. When the market is strong and you can get the price you want, it’s a great opportunity to release the property and start fresh. Maybe you need the money for a down payment on a new property or you’re planning to do something else with the cash.
However, if you’re hoping to turn your old home into a long-term investment, you have the option to do that by renting it out. You will not only earn consistent rental income, you’ll also allow your property to continue growing in value.
Renting instead of selling also gives you an opportunity to create generational wealth. It’s a long-term safety net for children, grandchildren, and great-grandchildren.
Treat Your Rental Property Like a Business
Deciding to rent out your home instead of selling when you’re downsizing for retirement is an excellent financial opportunity. There are a few emotional risks to avoid, including:
- Feeling over-attached to the property. You’re going to have tenants living in it, which means you can’t go over there to trim your rose bushes or sweep the sidewalk. This is someone else’s home, and you have to be prepared for that separation.
- Fearing your tenants aren’t going to take care of it the way you took care of it.
It’s important to treat this as a business because once you begin renting it out and making money on the home, that’s what it is – an income-producing business. Enjoy the passive income and the tax benefits without worrying too much about who is living there and what they’re doing inside the home that was once your home. It’s the only way to succeed as a rental property owner.
Hire a Professional LA Property Management Company
Renting out the property is a good idea for many financial and personal reasons, but it also comes with risks. Working with professional property managers is a good idea. It will allow you to have a subjective buffer between you and your former home. You’ll be less likely to become personally involved with tenants or emotionally attached to the property.
You won’t have to fight with family members about who is going to show the home when it’s vacant or who will be the one responsible for maintenance and landscaping. Instead, your professional property manager will take care of all these details and functions.
We have a lot of experience working with landlords and owners who are renting out the property they once lived in themselves. Let us take care of the headaches and the hassles while you enjoy spending or saving your rental income. Contact our team at EGL Properties.