Listing... To Sell, vs. To Lease

The Future Property Value Is Likely To Be The Same, Or Less Than What You Can Sell For Now

The Property's Value Has Substantially Increased Since You Purchased

The Property's Age And Condition Make It Likely Major Repairs Will Be Needed During The Time You Might Lease The Property

Are You Relocating Out Of The Area Permanently

Demand For Rentals, Similar To Your Property, In The Area Is Weak

If there is not data within the last six to 12 months, showing both an acceptable days on market and final lease amounts for very comparable properties, in the same area, that would support ideally covering all of your mortgage payments, real estate taxes, HOA fees and foreseeable required repair costs meaning it's not likely you will have a positive cash flow then it likely makes more sense to sell vs lease your property.  While appreciation can offset some of the need for positive cashflow, the need to sell vs lease only becomes more critically important if the property is not expected to appreciate much or at all during the time you will have it leased. For some folks, having an investment that's actually loosing money could add some value. So, part of your evaluation should include conversations with your CPA and financial advisors.

It Is Not The Best Time Of Year To Find The Most Ideal Tenants For The Property

The Monthly Rental Income would be Less Than All Expenses Including Real Estate Taxes, HOA Fees, Etc.,

The Thought Of Being A Landlord Does Not Excite You

Even with great tenants,  a perfect rental still can still generate a lot of stress and hassles. Frozen pipes, clogged drains, broken garage door springs, pets, and roommates are just some of the frustrations and challenges that surface. Even ideal tenants want your full and immediate attention when something goes wrong with the property.

Challenging and difficult tenants multiple and exaggerate that stress and frustration. Daily calls from the tenants and late or unpaid rent just add more fuel to the fire! The move-out process can be another challenging time. Damage to walls, floors, carpets, and other components of the property can lead to disputes over the security deposit and to costly and time consuming repairs. Since every moment wasted arguing is a moment the house could be sitting vacant, you are often better off just paying for the repairs yourself to be able to lease the property sooner vs later.

If you don't plan to have a property manager to field these calls and to deal with all of these hassles then give serious thought to disruptions on holidays and vacation time especially if you typically travel out of the city or the country.

The bottom line if this all sounds like more grief then what you want to deal with then you should likely sell vs lease your property! 

Future Property Value Is Likely To Be Greater Than What You Can Sell For Now

The Property's Value Has Not Substantially Changed Since You Purchased

The Property's Age And Condition Make It Likely Major Repairs Will NOT Be Needed During The Time You Might Lease The Property

Are You Relocating Out Of The Area Temporarily

Demand For Rentals, Similar To Your Property, In The Area Is Strong

If the data within the last six to twelve months, shows both lower days on market and final lease amounts for very comparable properties, in the same area, that would cover and ideally exceed all of your mortgage payments, real estate taxes, HOA fees and foreseeable required repair costs meaning it's likely you will have a positive cash flow, then it likely makes sense to lease vs sell your property.  If the property is also likely to appreciate then this is just icing on the cake for the positive cashflow meaning that it likely makes even more sense to lease vs sell the property. For some folks, having an investment that's actually generating a positive cashflow, could increase your tax bracket causing more taxes to be paid in excess of the increase in income. So, part of your evaluation process should always include conversations with your CPA and financial advisors.

Now Is The Best Time Of Year To Find The Most Ideal Tenants For The Property

The Monthly Rental Income, After All Expenses, Would Provide Passive Income

You Have Always Wanted To Be A Landlord

Even with great tenants,  a perfect rental still can still generate a lot of stress and hassles. Frozen pipes, clogged drains, broken garage door springs, pets, and roommates are just some of the frustrations and challenges that surface. Even ideal tenants want your full and immediate attention when something goes wrong with the property.

Challenging and difficult tenants multiple and exaggerate that stress and frustration. Daily calls from the tenants and late or unpaid rent just add more fuel to the fire! The move-out process can be another challenging time. Damage to walls, floors, carpets, and other components of the property can lead to disputes over the security deposit and to costly and time consuming repairs. Since every moment wasted arguing is a moment the house could be sitting vacant, you are often better off just paying for the repairs yourself to be able to lease the property sooner vs later.

If you don't plan to have a property manager to field these calls and to deal with all of these hassles then give serious thought to disruptions on holidays and vacation time especially if you typically travel out of the city or the country.

The bottom line is if your plans include hiring a property manager or your full time job is dealing with you rental properties then leasing may be as or more viable then selling your property!