Deciding whether to sell your home or turn it into a rental investment property can be a tricky decision. When you live in a city like San Mateo, right in the center of the San Francisco Bay Area, then it becomes an even tougher call. But with the right guidance and advice, making this decision can be easier. Here are the pros and cons of both approaches.
Turning Your San Mateo Property into a Rental – Pros and Cons
Owning your unit for a longer period of time gives a much higher return on investment (ROI.) Not only do you generate money in the form of rental income but, as prices of real estate soar in the area, you also earn a much higher return on your initial investment for the home.
However, all of that comes with a responsibility – the responsibility of maintaining the property, finding good tenants, evicting bad tenants, taking care of your tenant’s needs, and much more.
Secondly, the prices of properties may not necessarily continue to increase. Unfortunately, if this price drop comes at an occasion when you need to sell, you may be forced to sell your investment for much less than the price you expected. Having said that, this risk always exists in all types of investments.
Selling your San Mateo Property – Pros and Cons
If you sell your house today, you may not be able to accumulate the returns for a long period of time; however, you will be able to immediately unlock whatever wealth your investment has generated so far. At present, San Mateo is a seller’s market, with the number of buyers exceeding the number of sellers. Depending on your particular situation, this may or may not matter much.
Selling your current house can be a good option if you’re planning to purchase another property in the near future. On the other hand, if you don’t have any immediate investment plans, then selling it may not be very important for you.
Another advantage of selling your unit is that it saves you from all the responsibilities that come with renting it to a tenant. You don’t need to find the tenants repeatedly, you don’t need to spend your time getting repairs and maintenance done, nor do you need to keep following up for rent payments.
One way to both have your cake and eat it too is to keep the rental unit and eliminate the responsibility. Hand the day-to-day management over to a property manager who can take care of all the landlord-related responsibilities for you.
In a nutshell, there’s no definitive answer to whether you should sell your home or turn it into a San Mateo rental property. The answer varies depending on your immediate and long-term needs.
With our years of experience, we usually recommend that whenever you have the choice, you should turn it into an investment rental rather than selling it. Although it requires maintenance, screening of tenants, and lots of patience, investing in a rental property in San Mateo significantly increases your ROI in the long run.
If you need more help deciding whether to sell your San Mateo property or rent it, or if you’re having trouble finding the right tenant for your home, feel free to contact us at Bayside Management. Founded in 1982 in Marin County, Bayside Management has expanded to offer full-service San Mateo property management to the entire San Francisco Peninsula. We manage single-family properties, multi-unit complexes, commercial properties, and homeowner associations. Connect with us to discuss all your investment property-related queries.