Should You Sell or Rent Your NYC Apartment?
Is it better to rent out your property or just go ahead and sell it so you can move on to other things? This is a question that many owners – especially property owners in New York City – are likely to face at some point if the market or personal circumstances doesn’t provide a clear cut indication of which one makes the most sense.
Here are a few things you should think about to help you make your decision.
What’s Your End Goal?
Is renting a “stop gap” because you’re unable to sell the property?
Are you looking for an additional income stream?
Are you trying to “buy yourself some time” to figure out what to do with the property long term?
Are you looking to relocate elsewhere temporarily and just want someone to cover the costs of your apartment while you’re away?
Getting clear on your reasons for doing one thing versus another will go a long way towards informing which choice is right for you.
What’s the Rental Period?
Are you looking to rent it just for one year? Two years? Longer?
While tenants are often reluctant to commit to a 2 year lease off the bat, they’re also not so keen on going into a rental with the knowledge that they’ll definitely have to move within a year. Co-op and condo applications are often lengthy and expensive – they don’t want to feel like they’re putting in all that “work” for a very short term gain.
Income Potential vs. Expenses
Will it cover expenses and/or generate a profit for you? If it’s not enough to do either of those, would the amount still be enough to help mitigate your ongoing costs? Is that amount high enough to justify the costs and effort involved in the process?
Would you be better off taking the proceeds from a sale and reinvesting it elsewhere?
Even if you sell at a loss, the right kind of reinvestment might make more sense in the long term as opposed to renting it out.
Review this previous post to see what you need to consider because becoming a landlord can sometimes be more daunting than people realize.
One pro tip to help you figure out answers to the questions above – talk to a financial advisor!!!
If you already have one, make use of their expertise. Since they’re already familiar with your personal circumstances, they’re well positioned to make recommendations. And if you don’t have one, then look for one!
Ready to start discussing whether to list your home for sale or rent? Then contact me to get started!