Let’s say you have two homes–your primary residence, and your beach house on the shore. While you’re not using your secondary home, it’s possible that you rent it out to tenants throughout the year. However, you may be finding that renting out your property is becoming more trouble than it’s worth. Renting often comes with negatives that far outweigh the positives, and landlords don’t realize until it’s too late, and they’ve already lost money and time. It’s no secret–selling your property is better than renting it out, every time. Here’s why.
If you’ve lived in a home for several years, especially if you’re a married couple, you can have up to $500,000 in capital gains, tax free. But this only applies if the property in question was your primary residence for two to five years. Renting out a secondary property means you may be subject to taxes on those gains later on, when you do decide to sell. Selling your property in this case is especially useful if, for whatever reason, you’re moving primary residences; selling your current primary residence is your best bet, in terms of taxes.
There are many factors when you rent out that could cause a negative flow of cash; from tenants not paying on time, to mortgage payments, to times when the property will be vacant. Sometimes, security deposits don’t cover all the damages. Even eviction can be a costly, timely process. Is renting your property out worth these risks? The cash flow and reserve needed in order to rent out a property is disproportionate to the gains. Selling, once again, is king.
Stress of Being a Landlord
The job of a landlord is no easy task. You need to be on call constantly, for maintenance and other issues that a tenant needs you to take care of. Not to mention, collecting rent, maintaining an extra home, and paying an extra mortgage are all included in your stress level. Being a landlord is hard work, and the gains hardly outweigh the costs.
The Team Edge will buy your secondary property today!
The Team Edge will buy your property regardless of its current condition and curb appeal, and is dedicated to providing you with the best possible selling experience and a fast, fair offer. Call our 24/7 hotline today at 443-840-7100 or fill out our quick and easy online application to get started on selling your Maryland property immediately. That’s right. Sell your house fast – AS IS!