Should You Sell or Rent Your Home?
Smart questions to consider to help you make your decision
A case could be made that Kelowna’s real estate
market is both a seller’s market and a landlord’s
dream in the first quarter of 2015. Low inventory
is keeping demand high even with the drop in
oil prices and a low vacancy rate means that
rents are rising as well. So should you sell or
Here are a few questions to consider:
Do you have the financial resources to hang
on to a rental property?
A house takes maintenance and what can go
wrong will at some point. Do you have the money
saved up to manage emergencies or to juggle
living costs if your renters leave you in the lurch
and you need to cover the mortgage for a few
Do you have the tolerance to be a landlord?
If you are going to hang on to your property,
you have to be prepared for the responsibility
that carries with it. That means dealing with rent
deposits, tenants and maintenance yourself or
taking the time to source a property manager
that can do it for you. A huge factor is also the
condition the home is in – if it’s going to have
continuous issues then it can be a real stress and
Can you cover your costs?
Determining the rent you need to cover
your costs is more than just your mortgage.
You must look at property taxes, maintenance
costs, property management costs
and more. If you are not going to be able to
earn enough rental income to at least come
out even, it may be wiser to sell. The exception
to the rule is if you believe your
home’s value will rise enough during your
rental period to offset any shortfall.