If you have to relocate to another state for family, career, education, or other purposes, what will happen to your home? Should you sell it or work with a Portland property management company to rent it out?
The truth is that there’s no one-size-fits-all solution for all homeowners. Instead, you should consider factors like profits, taxes, and rising interest rates.
Our Portland real estate experts from The Garcia Group can help you decide what’s best for you. Read on for the ultimate selling-versus-renting-out guide.
The Portland Real Estate Industry
Homeowners thinking about selling or renting out their properties should always check the latest market news. Below are a few highlights from the latest State of Housing in Portland:
- Since 2014, the population has grown at an annual rate of 1.4%. The number of households boasted an almost similar 1.3% growth rate.
- In 2017, the annual housing production and permitting levels skyrocketed to record levels, with over 6,000 permits and 8,000 units produced.
- The city experienced a decline in permitting and production in 2019 and 2020, partly because of rising construction costs, tariff uncertainties, and the global COVID-19 pandemic.
- Recent numbers reveal a housing stock of 155,410 single-family homes and 142,236 multi-family ones.
- In 2021, the number of permits rose to 4,257 — a solid rebound from the pandemic figures.
- There are more homeowners than renters in Portland, with a 53.4% to 46.6% ratio.
- The median home sales citywide are $549,000, and the average rent is $1,556.
- On average, the vacancy rates remain at 6.4%.
Signs To Sell Your Home
In some cases, selling your home might make more sense financially than renting it out. Below are signs to sell your Portland property:
- Seller’s market: A low housing inventory and robust buyer demand combination are one of the most profitable scenarios for homeowners selling their properties. With a limited supply, you can maximize your home’s value.
- Low rent rates: Naturally, you want to make the most money from any real estate transaction. If you can’t charge enough rent to meet your home’s value, it might be better to sell it.
- Not enough cash: Renting out a property may be lucrative in the long run, but you need money to maintain it. If you’re not liquid enough, we would suggest selling it outright.
- High equity: If you need cash fast and have a big chunk of your equity in your property, selling is the more viable option.
- High maintenance costs: Typically, older properties are more expensive to maintain. If you don’t have the money, time, and energy to oversee every nook and cranny of your home, selling it might be your best bet.
Signs To Rent Out Your Home
According to the latest figures, Portland homes are enjoying higher rental rates versus the national average. Apart from this obvious sign, below are some factors to watch out for:
- High rental demand: As with a seller’s market, a spike in rentals in a market is a solid indicator to rent out your space. People are willing to pay more for sought-after areas.
- A propensity for property management: Being a landlord is no walk in the park. However, if you have a passion for it, you can increase your chances of success.
- Personal attachment: If you’re not ready to bid your house goodbye for sentimental reasons, renting it out would be ideal. Doing so allows you to return in the future.
- Appealing amenities: Our needs change over time. Even if your property doesn’t suit your requirements, it could still be someone else’s dream house. Outdoor spaces, a good walkability score, and smart home features are always a plus.
- High profitability: Check your numbers before selling or renting out your property. With the right Portland property management company on your side, you can achieve your profitability goals.
The Role of Rising Interest Rates
The Federal Reserve raised interest rates by .75% in early November — the fourth time this year. In most cases, mortgage rates drop when interest rates soar, but not this time. Recently, mortgage rates fell for the first time in months.
This scenario leads to a plunge in home prices, which is happening in the Portland metro now. From September to October, the market saw the median sale price decline by 2%, from $548,000 to $537,000.
Normally, these signs point to renting a property out, but it’s best to work with experts to determine your next move.
The Role of a Reliable Property Management Company
Property management experts typically serve private landlords overseeing homes, condominiums, and villages. Below are a few benefits of working with these professionals:
- Market knowledge: Computing your property’s potential value can become an overwhelming experience. However, an expert can help take out all the guesswork in determining profitability.
- High occupancy rate: A reliable team can get you tenants — and the best ones, too. They can fill your property with trustworthy renters.
- Massive network: If you have a trusted firm on your side, you gain access to local suppliers who can keep your property in tip-top shape. Should you need repair, cleaning, or plumbing services, they can connect you with the best local contractors.
Consult With Top Portland Property Management Experts Now
Working with the right real estate professionals can help boost your profitability. For instance, property management experts usually serve private landlords since this endeavor can be a lucrative way to grow wealth. However, trusted experts like those at The Garcia Group always have your best interests at heart. If renting out your property is not viable, we can still guide you on the next steps to selling your property.
Request a free consultation now if you need guidance with a real estate decision.