When it comes time to move to a new home, most people think they need to sell their old home. After all, it's not like they're going to be living in it, right? While selling your home might be a smart move in a strong housing market, it might actually be better to keep your home and use it as a rental property instead. You will still technically own your home along with wherever you happen to be living, but you'll become a landlord. Here are just a few reasons why this might be a smart move.
A Rental Property Is a Source of Passive Income
Perhaps the best reason to keep your home as a rental property is to create a source of passive income. You'll still have to put in some work as a landlord if you need to make repairs or improvements on your rental property, but most of the upkeep will be your tenants' responsibility. In the meantime, those tenants will pay rent every month and become a reliable source of income for you.
Protection From Inflation
Selling a home during a period of high inflation is difficult. While you can technically stand to make more money if you do manage to sell, finding a buyer is a challenge. On the other hand, you'll have a much easier time finding someone who would be willing to rent your home. You'll still be able to make money on your property, and you'll be in better control of your investment when it comes time for you to sell
A Great Temporary Solution
Being a landlord can be tough, and it clearly isn't for everyone. However, just about anybody can do it for a short period of time if they can find good tenants who will take care of the property. All you need to do is find residents who will live in your home for a year or two. By the time they're ready to move on to a home of their own, the housing market might be a little more stable, and you'll be able to sell your home. If it turns out that being a landlord is for you, simply keep your rental property, perform any repairs or upkeep that might be necessary, find other tenants, and continue to make a passive income.
Since being a landlord presents some challenges, it pays to have a good property management company on your side. If your old home/new rental property is in or near Colorado Springs, contact Premier Real Estate today. We will be happy to speak with you and find a property management solution that best suits you and protects your investment.