While sales markets across the country begin to peak and cool, the Coos Bay rental market is pretty strong right now. There’s a higher demand for good rental housing than there is supply, which means property owners are able to charge higher rents and be more selective when it comes to choosing tenants.
It’s an excellent time to be renting out a well-maintained home in a desirable neighborhood.
However, there are still some excellent reasons to sell your home. Real estate prices are still high. In March, 2023, Coos Bay home prices remained 0.9% higher than they were last year, but in April, 2023, they dropped five percent, according to Realtor.com. Things are shifting quickly.
If you have a Coos Bay home that you no longer plan to live in, this leaves you with a big decision: should you sell that home or rent it out?
The answer will depend on your own financial plans and what you may or may not want to do with that property in the next year, five years, or 10 years.
While there’s no single answer to this question, there are some things you should consider before you decide one way or the other.
Reasons to Sell Your Coos Bay Property
Not thrilled with the idea of holding onto a property that you’re not actively living in? That might be enough of a reason to sell it. Here are some other good reasons to walk away:
The cash would be nice
Sell now, and there’s a good chance you’ll earn top dollar. If you place your property on the sales market today and it’s a well-maintained home in a good location, you’re going to sell it for a price you can probably live with. You’re likely to make some money.
This is a great opportunity for you if you need to get your hands on some cash. Maybe you’re sending a child to college or beginning your retirement. Perhaps you’re ready to start your own business or you want to take that trip around the world. Or, you could be buying a new home and you need the money for a down payment.
Selling can be an excellent way to earn money and walk away from the responsibilities that come with owning a property. Whatever your reasons for needing a predictable sum of money, selling your property can deliver that. If you have enough equity in the home and you know the sales market will deliver the price you want, selling is an easy way to move on.
Sell if the home is older and needs work
Tenants in Coos Bay have pretty specific needs and desires. To effectively rent out your home, the property will have to meet the demands of the market and the tenants driving that market. There’s no sense in renting out a property that will require thousands of dollars in upgrades and renovations just to prepare it for tenant showings and online advertising. You also won’t earn a lot of money on your rental if you’re spending thousands of dollars every year in maintenance and repairs.
Older homes typically require more maintenance and frequent repairs. That’s something that may encourage you to sell rather than rent your property. If you keep it as a rental, you’ll need to make some cosmetic upgrades. There may be costly repairs that are necessary. If you do not want to invest the necessary resources into upgrading and updating an older or deteriorating home, sell it instead.
Reasons to Rent Out Your Coos Bay Property
Maybe you’ve always wanted to be a real estate investor, but you never had the time or the money to buy an investment property.
If you’re moving out of your current home, you could potentially have one, now.
Here are some other good reasons to resist selling your home, and rent it out instead.
Rent to earn consistent income and long term return on investment (ROI)
The Coos Bay rental market needs well-maintained homes that are attractive to tenants. If you have one, you can earn a lot of money in consistent and recurring rental payments. You’ll also hold onto a valuable asset that’s increasing in value.
If you decide to rent out your home, you’ll find you have a stable pool of well-qualified tenants who are willing to pay top dollar for a great rental home.
It’s a good time to rent out your home. You can expect high rents now and into the future.
Rent to take advantage of tax benefits
There’s likely a capital gains tax you’ll have to pay when you sell your home. Renting out the property can help you avoid that tax exposure. Owning a rental home also provides a lot of tax benefits:
You can deduct the home’s depreciation, which is pretty generous by IRS standards.
You can deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management.
You can deduct the interest on your mortgage.
You can write off any travel expenses when you need to visit the property.
These write-offs help to reduce your overall tax liability, and are a great reason to keep your property instead of selling it.
Working with Coos Bay Property Managers
Coos Bay property managers can help you effectively lease, manage, and maintain your rental property. If you want to rent it out, but you hesitate to do so because you’re not sure you’ll make a great landlord - we have you covered. There’s no need to worry about marketing and showing your home, finding a tenant, collecting rent, making sure the home is well-maintained, or dealing with legal complexities and liability.
Property managers do this every day for owners just like you. When you decide to rent out your property, contact a Coos Bay property manager right away. You’ll need to know how much rent you can expect to earn and what you may need to do to prepare the property for the rental market.
These are some of the best reasons to sell your property and an equally good set of reasons to rent it out. If you’d like some help working through these options, we can take a look at your unique situation and give you some additional help. Please contact us at Oregon Bay Properties.
