Suppose you're having trouble determining what to do with your Branson house after you've finally chosen to relocate to another state to be closer to family or to start a successful business. In that case, you should hire the top Branson property management company to oversee the rental of your real estate. The signs that it could be an intelligent decision to keep possession of your property and rent it out instead versus the appeal of selling it are listed below.

Demand for rentals is high in your area

Rental demand can also rise in areas where job growth is solid or new buildings are built. For example, in the seven years following Amazon's decision to locate its headquarters in Seattle in 2010, the city's median rental rate increased by 41.7 percent. To give you an idea of how that compares to other cities, the national median rental rate increase over that period was only 17.6%.

Apartment List produces market-specific statistics for many of the country's largest growing cities, to help measure rental demand in specific areas. The October 2020 Rent Report from Apartment Guide examines the health of the renting market nationwide, including rent trends and pricing volatility.

You've always wanted to own rental property.

Being a landlord isn't for everyone, as it comes with many responsibilities and annoyances. However, if the notion of renting out your property and having the added income each month has always piqued your attention, your interest and passion may be worth the additional energy to make the endeavor succeed. Having a property manager to ensure all of the day-to-day operations are taken care of will relieve you of that added stress.

You have a personal attachment to the house

Perhaps you've been forced to relocate due to a work transfer, family obligations, or some other unforeseen scenario, but you don't want to give up your home permanently. Turning the house into a rental could be a financially good way to keep ownership until you're ready to return. This is especially true if it has unique characteristics that are hard to come by — like a stunning view, a storied history, a one-of-a-kind layout, or just a personal appeal that can't be found anywhere else.

Your house offers appealing amenities to renters

Your property could be someone else's dream home, even if it no longer fulfills your needs. It may be in your best interests to keep ownership if it has qualities that set it apart from other rentals and make it more appealing to tenants. A quiet and private backyard, a finished basement with a walk-out, or proximity to a park could all be bonus features that attract tenants. 

The following lists will give you an idea that you should sell your house instead of renting it out:

You don't have enough liquid cash on hand

Most Branson property managers agree that having adequate liquid cash to maintain the property, pay property taxes, and make mortgage payments in the event of a vacancy is necessary. Not only do you lose rental income when a rental property goes unoccupied, but you also have to pay for typical property bills, insurance and any mortgages, as well as, in most cases, capital expenditures to get the property ready to rent again.

If you don't have enough cash on hand to cover all of these payments and repairs, selling the home is a better option than renting it out.

You've got a ton of equity to cash in on

If you need money for a down payment on a new house and have a lot of equity in your present one, selling will likely help you get there faster than renting. You'll also have to factor in any essential repairs and maintenance, as well as a 10% fee and closing cost. To figure out whether selling makes sense, first learn about the costs of selling and consider the breakdown of expenses.

The age of your property raises maintenance costs and concerns

When you own a rental property, you may expect some level of routine maintenance when faucets leak, water heaters go down, and ant colonies invade. However, the National Association of Homebuilders reports that older homes' average annual maintenance costs are more significant.

The newer properties, or  older properties that have been well-maintained and upgraded, are the easiest to have as a rental property. If your home is older and has many original components, such as the HVAC system, roof, and appliances, renting it out may not be worth the future expenditure. Homeowners would rather sell their homes as-is in this hot market than risk incurring significant expenses in the future.

You're not thrilled about becoming a landlord

Renting out a house can provide a steady income stream, but it comes with a cost. Maintenance and repairs are included in the price. When the heating goes out on a frigid night, you'll get a lot of calls. To handle those 2 a.m. calls and to help you screen tenants, you can engage a property management business. However, you must consider the expense (about 8% to 12% of the monthly rental value) in your final monthly budget numbers.

If you have the cash flow to cover the expense of owning a rental property, most often keeping the extra home and using it as an added source of income is a positive decision. Engaging the services of a Branson property management company will help your venture be more successful, while you still maintain the freedom from the hassles of everyday landlord responsibilities.

Thousand Hills Realty is Branson’s premier property management company and we would appreciate the opportunity to discuss how our management services can benefit your individual situation. Call us today at (417) 337-8081.