Sell Or Rent, Which Is Best For You?
When it’s time for a move, deciding whether to sell or rent your Portsmouth, NH home is one of the biggest decisions you’ll make. Many homeowners are now weighing the benefits of renting their property versus selling it and moving on.
Here’s a closer look at why selling might be the better deal for both your financial and lifestyle goals.
Selling allows you to unlock the value of your home and use that equity toward your next purchase or investment. With today’s strong real estate market on the New Hampshire Seacoast, this can translate into a powerful financial boost. By selling, you can make the most of your property’s current market value and avoid the added complexities of becoming a landlord.
Is Your House Ideal for Renting?
Not all properties are suited for rentals. If you’re moving far from Portsmouth, managing a rental can be inconvenient. You’ll need to oversee maintenance, address tenant concerns, and ensure the property remains in good condition, which may require hiring a property manager—adding more costs. Additionally, properties in neighborhoods that aren’t popular rental markets may stay vacant longer, impacting your bottom line.
Selling allows you to sidestep these potential challenges and move forward with less risk and more control over your finances.
If any of these situations sound familiar, selling might be a more practical choice.
Are You Ready for the Realities of Being a Landlord?
Renting sounds simple—until you’re handling midnight repair calls, dealing with unpaid rent, or managing tenant turnovers. The realities of being a landlord can be demanding and stressful. If you’d prefer to avoid these added responsibilities and costs, selling could be the better fit. By working with trusted local REALTORS like Ann Cummings and Jim Lee at RE/MAX Shoreline, you’ll have expert guidance every step of the way.
For example, you may get maintenance calls at all hours of the day or discover damage that needs to be repaired before a new tenant moves in. There’s also the risk of tenants missing payments or breaking their lease, which can add unexpected stress and financial strain. As Redfin notes:
Do You Understand the Costs?
If you’re considering renting primarily for passive income, remember, there are additional costs you should anticipate. As an article from Bankrate explains:
Mortgage and Property Taxes: You still need to pay these expenses, even if the rent doesn’t cover all of it.
Insurance: Landlord insurance typically costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.
Maintenance and Repairs: Plan to spend at least 1% of the home’s value annually, more if the house is older.
Finding a Tenant: This involves advertising costs and potentially paying for background checks.
Vacancies: If the property sits empty between tenants, you’ll lose rental income and have to cover the cost of the mortgage until you find a new tenant.
Management and HOA Fees: A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.
Bottom Line
Both selling and renting have their advantages, but selling gives you immediate access to your home’s equity and a fresh start without the challenges of property management. Ready to discuss the best choice for your Portsmouth, NH property? Reach out to Realtors Ann Cummings and Jim Lee with RE/MAX Shoreline. With deep knowledge of the New Hampshire Seacoast market, they can help you make the best decision for your future.
Visit newhampshiremainerealestate.com for more information on living in Portsmouth, NH and along the New Hampshire Seacoast. You can also call us directly at 603.436.1221 to schedule a consultation and take the next step toward achieving your real estate goals.