If you're a homeowner considering whether to rent out or sell your property, you'll want to weigh the pros and cons of both options. Selling your property can provide you with a one-time lump sum payment, but renting it out can generate ongoing income. There are also some other factors to consider when making this decision. We're here to help you explore the pros and cons of renting vs. selling your property. We hope this information will help you make the best decision for your unique situation.

Understand what's a better investment

Owning real estate is one of the best long term investments. You can hedge against inflation and have someone else pay your mortgage. But, if you're still conflicted, use the attached sell versus rent calculator to decide what is best financially.

In addition to the download, there are some other tools and financial metrics that you should consider:

• Real Estate Pro Forma - Free download to compare the return on this property versus another property
• NOI Formula - Formula to understand the profitability of the real estate asset
• Cash on Cash Return - Formula to help you understand the amount of money you earn compared to the capital you invest
• Gross Rent Multiplier - Formula to help you uncover if this property is a good rental compared to other properties

There is also the strategy to do a 1031 exchange and sell this property to eventually buy one that is a better investment. So you may sell the property and still become a landlord.

Are you trying to figure out what the property should rent for? Use this rent estimator calculator to understand what rental price you should expect on the property. Real estate agents are also a great way to understand your market and what is reasonable. Please note that a real estate's personal interest is in selling the property for you, so keep that in mind

Make the best decision for you

Whether to rent or sell the property is a personal decision. Everyone has different long-term and short-term financial goals, as well as different risk tolerance levels. For example, you may not love the concept of debt and prefer to sell the property to pay off student loans or other payments. On the flip side, you may see interest rates at a low and opt to take on debt while earning more from the cash in a rental property. Or, you may be lucky enough to have no debt and think about owning a rental versus putting the money into another investment, such as the stock market.

What are the pros of selling the property? First, you get one-time lump sum payment. This can be helpful if you're looking to downsize or move to a new area and need the extra cash. The amount of money you make from the sale of your home will depend on factors like the housing market and the condition of your home.

Second, when you sell your home, you won't have any ongoing expenses associated with the property. This means you won't have to worry about things like maintenance, repairs (although those are solved through Hemlane), or paying property taxes. Once the sale is complete, you'll be free from any financial obligations to the property.

Before you decide to sell, why should you consider renting the property? Selling the home means that you never own this asset. If you have any emotional attachment and may move back, then you may reconsider the sale.

Further, if you rent out your home, you have the potential to earn ongoing income from rent payments. If you sell your home, you'll only receive that a one-time payment.

When you're deciding whether to rent or sell your property, it's important to consider your unique circumstances. What are your financial goals? Do you need a lump sum of cash or would you prefer ongoing income? Are you prepared to be a landlord (resources to help you become a better one here)? Consider all of these factors before making a decision.

If you have any questions about renting your home, we're here to help. Contact us today and we'll be happy to answer all of your questions. Thanks for reading!