When you’re moving out of your Del Mar property and you’re not sure whether it’s better to sell it or rent it, the first thing you have to consider is where you are financially. Think about what your goal would be in selling it. Maybe you need the money. Conversely, why would you rent it out? Maybe you want to hold onto a valuable asset or maybe you’ll want to pass it onto your heirs.
If you’re wondering whether to rent or sell your Del Mar property, take a look at how the market is currently performing. Evaluate your financial goals and investment strategies, and then contact a real estate partner who can help you navigate the process – whatever you decide.
Reasons to Sell Your Del Mar Property: Accessing Cash
When the sales market is strong and home prices are in your favor, selling can be an excellent way to earn money and walk away from the responsibilities that come with owning a property that you no longer want to live in. If liquidating this asset will help you send your children to college or pay for the down payment on a new home, selling makes sense.
It’s important to measure the equity you have in the home against the sales price you’ll be able to ask.
Rental Income and Appreciation: Reasons to Rent
If you don’t need a quick influx of cash, it might be better to hold onto your property. The Del Mar real estate market is expensive to enter, and if you already have an asset here, keeping it can provide a lot of long-term appreciation and ROI.
There are additional financial benefits to renting out your property. You’ll earn a reliable rental income every month and selling in five years or 10 years will likely deliver a larger payoff.
The rental market is always changing in Del Mar. Tenants are seeking long term, well-maintained homes, so there’s always a demand. Vacationers are also seeking short-term rental properties by the week or the month. Rental prices are high and stable, and when you can attract and retain great tenants, they will help you pay off your mortgage while your property’s value continues to rise.
Think about the tax benefits that come with renting out a home. There may be a capital gains tax on the sale of your home, whereas with rental property, you’re able to take a lot of deductions. You can deduct the home’s depreciation, which is pretty generous by IRS standards, and you can also deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. These write-offs help to reduce your overall tax liability.
Renting with Professional Del Mar Property Management
Selling is better for you if you’re emotionally attached to your property and you don’t think you’ll be able to treat it like a business.
If you want to rent out the property and you’re moving out of the area or you’re not sure you have the time, knowledge, and temperament to be a landlord, your best chance at success is to hire a professional Del Mar property management company.
If you’re still trying to decide whether you want to rent or sell your property, contact us to talk through your unique situation. Harcourts Avanti is a full-service property management company that manages long term as well as vacation rentals in Del Mar, Encinitas, Carlsbad, Cardiff, Carmel Valley, Solana Beach, and the surrounding San Diego areas.