If you’re trying to decide whether it’s better to sell or rent your vacant Oakland property, we understand the indecision. A lot of our clients are moving out of state for work or personal reasons, following new passions, or moving from the home they currently live in to another property they’ve just purchased.
Selling might be best for you if you need cash right away and you know you have no interest in holding onto the asset. But, if you don’t need instant access to cash and you’d rather earn some impressive returns in the long term, renting might be your best idea.
Ultimately, it will depend on your goals and financial situation. Today, we want to offer some important things to think about.
Selling Your Oakland Home to Access Equity
When the sales market is strong and home prices are in your favor, selling can be an excellent way to earn money and walk away from the responsibilities that come with owning a property. Maybe you need the money you’ll make on a sale to send a child to college or put a down payment on a new home. There might be other investment opportunities you’d like to explore.
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.
Renting Your Oakland Home for Rental Income and ROI
There are many financial benefits to renting out your property. You’ll be able to earn a reliable rental income every month and your asset will continue to appreciate in value, delivering a larger payoff when you finally sell in a year or five years or 10 years.
The rental market is complicated and always shifting in Oakland. But, there’s a high demand for well-maintained homes, and a well-qualified and reliable pool of tenants. Rental prices are high and stable, even with rent control laws, and there are plenty of great renters willing to pay for a nice property. When you can attract and retain great tenants, they will help you pay off your mortgage while your property’s value continues to rise.
Consider Tax Benefits of Renting
There may be a capital gains tax on the sale of your home, whereas with rental property, you’re able to take a lot of deductions. You can deduct the home’s depreciation, which is pretty generous by IRS standards, and you can also deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. These write-offs help to reduce your overall tax liability.
Renting with Professional Oakland Property Management
Selling is better for you if you’re emotionally attached to your property and you don’t think you’ll be able to treat it like a business.
Or, you could hire a professional Oakland property management company to take care of all the details so you don’t have to. This makes sense for you when you decide to rent instead of sell. The laws have changed dramatically, and there’s a lot of risk involved in renting a property to tenants. This doesn’t mean you shouldn’t do it. Property management is simply more necessary than ever.
If you’re still trying to decide whether you want to rent or sell your Oakland property, contact us at California Pacific Realty. We can help you with either path.