To Sell or to Rent; That is the Question

May 29, 2008

With the slow down in the real estate market sellers who are transferred or moving out of the area are questioning whether it would be a better option to rent their homes until the market improves.

According to Al Napier of the Napier Realty Group in Newington, Conn., that "unless sellers want to become professional investors, they should absolutely not rent out their properties or leave them vacant for any length of time. Instead, they should do whatever is necessary to sell their place within the constraints of the marketplace and get it over with."

One could argue that since Mr. Napier is a real estate agent, he would be prejudiced to encourage homeowners to sell. However, there are some practical considerations for the seller who is considering becoming a landlord.

These include, but are not limited to the capital gains exclusion, the damage or wear and tear that tenants may inflict on the property and the difficulty of managing a rental from a distance.

The final consideration seems to be "How long will you need to rent it, if you are waiting for the market to improve?"

To rent or sell, that is a serious decision.