When leaving an old home for another, many Oahu homeowners hire a property management firm to either sell their house or rent it out. When choosing between the two, the best decision almost always depends on your circumstances. Both have their upsides and downsides, and it’s a matter of deciding which one fits your preferences and goals. Here’s a guide to help you out.
The Factors to Consider in Renting or Selling
First, consider your current financial situation and future housing plans, as these have significant impacts on your cash flow. Consider the local market condition for rental homes and whether there’s a steady demand for it, especially if your old house is in a good location. Determine current home prices and see if they’re projected to rise or drop over the years by taking a good look at your neighborhood and its hive of activity.
How These Matters Affect Your Decision
Keep in mind, location matters in whatever decision you make. There are areas on Oahu where demand is consistent for rental homes, like in Kaneohe, Mililani, and Ewa Beach, since they are close to the military bases. You can earn higher returns and have consistent occupancy as long as there are willing renters. Always keep an eye out for changing trends in the local real estate market, and decide whether you’re better off selling your home now than delaying for a few years more.
Why You Have to Ask the Right Questions
As you decide between renting and selling, do the math to find out which alternative is the most profitable for you in the long run. Are you earning or losing money? You might be better off selling if you keep on racking up expenses, repairs, and income taxes against a low rental income, leaving you with losses and a negative cash flow. Ask whether you’re cut out to be a landlord in dealing with problematic tenants. If not, you can hire a property management firm to handle it, instead.
If you’re planning to rent out your house but lack the time and patience to do so, you can rely on the property management experts at Kamehameha Realty to do the job for you. As one of the leading rental firms on Oahu, HI, they have the resources to handle your properties efficiently. To learn about their property management rates, call (808) 488-2477 or visit them online today.