Should You Rent or Sell Your Fixer-Upper

Remodeling a fixer-upper is a big undertaking, but it can be quite lucrative if you decide to sell or rent it out once it’s finished. Making that decision, however, is often challenging for homeowners who aren’t sure how much responsibility they want to take on with their renovated property.

Becoming a landlord comes with a lot to consider, and selling requires careful moves if you want to get the highest sale price. It’s important to think about the possibilities with each option, including starting a business that allows you to tackle more renovation jobs. If you need to find funding for your business idea, look no further than Streamline Funding, which can help you secure a loan for your next project.

Here are some things to consider when it’s time to make a decision about our fixer-upper:

Consider your options carefully.

When it’s time to decide whether to rent out the house or sell it, you’ll need to think carefully about the pros and cons of both options. Selling will allow you to move on to the next project with no restraints or responsibilities, but the process could be lengthy, depending on the housing market in your area. Renting it out will provide a form of income throughout the year, which can be extremely beneficial when it comes to funding your other projects; however, becoming a landlord is a responsibility that could prove time-consuming if you don’t hire a property manager to help with the daily operations. Make a list of the pros and cons and weigh your options carefully before deciding.

Make the most of your fixer-upper’s profitability.

If you choose to rent out the property, it’s crucial to maximize the home’s profitability from the get-go. You’ve already chosen a great neighborhood, but it’s also important to stay on top of maintenance, learn how to market your home to the right audience, and secure deposits from your tenants or renters. Think carefully about whether you want to allow pets, smoking, and anything else that might create damage to the home. By taking steps to make the most of your property, you can ensure that you’re not struggling to keep up with expenses.

Find some help.

Whether you choose to sell your home or rent it out, you’ll also need to take steps to hire help for tasks like landscaping, cleanup, and managing the property. If you’re going to put the house on the market, you can even hire someone to stage the home to attract more interest. Put together a list of helpful resources that you can call on to assist with various tasks, which will take some of the burden off your shoulders and ensure that you’re able to find a buyer or renter as soon as possible.

Keep your finances in check.

While hiring out certain tasks is an easy way to stay on track with your goals, it’s important to keep your finances in check at the same time. Figuring out expenses can be challenging if this is your first time with a renovation, so you’ll need to create a realistic budget using quality online tools and stick to it. Renting out the property? If it’s a vacation or temporary rental, make sure you add in the cost of furnishings and supplies such as paper products. Selling a home may require the services of a stager or landscaper, and you’ll also be responsible for the real estate commission. When you have a solid idea of the costs involved, you can easily stay on track and keep financial stress from creeping in.

Renovating a home and deciding on the next steps can be time-consuming, but with this handy guide, you can choose the right options quickly and maximize profits for yourself in the process and ensure that your project is a success.

Photo via Pexels

Contributor: Sarah Velasquez