Should You Sell or Lease Your House?

Many homeowners, especially those who’re moving to a faraway place, face the dilemma of whether they should sell or lease the house. Both of these come with unique advantages that you need to assess before making a final decision.

Here, we’ve jotted down the benefits of selling and leasing a house to help you make the right decision.

Benefits of Leasing the House

You Have a New Asset

As you rent out the house, it becomes an asset rather than a liability. This means it’s possible to take out a second mortgage if the property is reclassified as an investment.

Once the house becomes an investment property, the mortgage lender no longer considers the house a debt but rather a generator of income and, thus, an asset. And you can use this asset to take out a second mortgage loan.

You Get a Second Stream of Income

If you can get a rental that’s enough to cover the mortgage payment and other homeowner expenses, such as taxes, insurance costs, repairs, etc., leasing the house is a prudent decision to get a new source of income.

You Get More Time

If you need to do repairs or renovations to sell the house at your ideal asking price but don’t have the money or time to do them immediately, leasing the house is a good option. The money you receive from the rental can be used for repairs and renovations.

Also, if you want to wait to sell the house at a higher price later, leasing it will create a continuous stream of income no matter how long you wait.

You May Get Some Tax Deductions

Rental property owners can write off several expenses on their taxes that let them have more money in their pockets. From insurance costs and interests to local and long-distance travels, home repairs, and more – there’re several items that are either fully or partially deductible from taxes.

Additionally, you may be able to enjoy capital gains tax exemption when selling the rental property. However, you should consult a financial advisor to understand the exact tax benefits you can get from leasing the house and selling it as a rental property.

Benefits of Selling the House

You Get Cash to Purchase a New Home

Many homeowners purchase a new house and sell the existing one at the same time to get the money required for the purchase. Unfortunately, it’s very difficult to take out a second mortgage loan unless you can make a sizeable down payment to the lender.

You Can Make a Good Profit

If you can sell the house to a reputable ‘we buy houses’ company, not only can you get a fair price but also close it within a short period of time. And if it’s a seller’s market, you may even get a better price than the market value of your house.

In addition to the above, leasing a house comes with many responsibilities that may or may not be possible for you to carry out comfortably. Now that you know the advantages of both options, it’s up to you to choose the right path based on your requirements and circumstances.

 

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Jana
Jana
04:22 07 Apr 22
Ken was such a joy to work with! I stayed at a property he renovated and my stay was phenomenal! He truly cares for his... tenants and the people he does business with. He is honest and fair. He was very speedy with repairs and ensured that my stay was very nice and comfortable. He communicated extremely well and was very professional throughout every encounter. I would absolutely recommend going to Ken for any rentals/purchases Going to the New Jersey area. Thank you Ken for everything!!read more
Rachel Velazquez
Rachel Velazquez
21:00 21 Mar 22
Very professional and willing to work with you. Ken and his team were so dedicated, even after the deal. It was a... pleasure working with this group. I was not an easy client and yet their cooperation and willingness to help me was incredible. Thank you!read more
Soufyane Bourass
Soufyane Bourass
15:58 07 Mar 22
I had a great stay at Ken's rental apartment. He was responsive when the heat broke and fixed it within 24 hours. He... made sure the apartment stayed warm and provided space heaters. I highly recommend him. Thank you Ken!read more
ALAN SCHINSKI
ALAN SCHINSKI
17:11 01 Nov 21
Ken from Cash Buyer NJ was a pleasure to deal with. I filled in and sent the online questionnaire, Ken called me ten... minutes later, we made an appointment and two hours later he was at my house. Ken did his due diligence and in two days we agreed on the price. The sale was as is so I only moved what I wanted and left the rest. The closing was completed on time. Ken is honest, and a gentleman who you can take at his word. The whole deal couldn't have gone smoother!read more
Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
YASMINA VASQUEZ
YASMINA VASQUEZ
15:13 02 Aug 21
Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Vishrut Patel
Vishrut Patel
23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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