To rent or to sell in Retirement?
May 21, 2023
by Bridget Blonde
You're ready to retire and move on to a more manageable home. Or maybe a home in a place you've always wanted to live! But what should you do with the house you are in now? You know that real estate is a good investment so you wonder if you should hang onto it. Or is it better for you to sell?
It might make sense to rent your house when relocating for retirement if you are relocating close by. This way you can keep an eye on the property and hopefully prevent any potential damages by tenants. It might make sense to rent your house if you know someone (ie a friend or family member) that you trust who is looking for rental accommodations.
Renting your house instead of selling may be a good decision for you if you are an experienced landlord and accustomed to dealing with tenants, contractors, and property management companies. Having all these pre-existing relationships and experiences can help make this a positive experience for you.
If you are looking for a retirement job, maybe renting and property-managing your own house will work for you. If you enjoy it, you can look into either getting more rental properties of your own or working as a property manager for an established company.
It would make sense to sell your home instead of renting it when you are relocating for retirement if you need the money from the sale of your home to buy or rent your retirement home. Being mortgage free is the way many retired people manage when their income is reduced after they stop working.
If you do not have experience as a landlord or know how to effectively screen tenants, it likely makes more sense to sell when you retire. Dealing with a bad tenant can cause an extreme amount of stress, financial loss, and damage to your property.
If you are relocating at some distance from your property I feel strongly that it is a much better idea to sell your house instead of renting it. I have experience in these situations and several have not turned out well for elderly landlords. If your health changes and you can no longer make the trip to check on your property or deal with your tenants you will need a trusted and effective property manager to do this for you. If you do not have a good property manager, over time you will lose touch with what is going on with and at your property and this can lead to numerous problems.