At some point, many first-time homeowners outgrow their first property and get ready to move on to a more expansive domain. A starter home can help new homeowners build equity, improve their credit, and get used to being a homeowner. It also holds a secret benefit; when you move, your starter home could become a starter rental property—your first step to growing long-term wealth through real estate.
If you've found this blog, chances are you're considering renting out a property for the first time. As an expert provider of property management in Plano, we admit we have a bias—we think investing in Plano real estate is a smart way to build long-term independent wealth. You may be curious about what the pros—and cons—about renting your property might be. In this blog, we'll outline the details of renting a property to help you answer your question, "Should I rent out my Plano house?"
Reasons Not to Rent Your Plano Property
There are some reasons not to rent out a property, so we'll cover those first. If none of these apply to you, then continue reading on to learn the reasons why property management in Plano will help you reach financial freedom.
1. Late Rent Would Cause You Financial Hardship
If you're weighing selling versus renting, you have to consider all of the possibilities. Sometimes tenants pay rent late: if you don't have a savings account with 2-3 months worth of expenses saved, a late rent payment from a tenant could be very uncomfortable.
While that amount of savings isn't the dealbreaker, the question behind it is: can you afford to float rent while the rent is collected? If the answer is a solid no, renting might not be for you.
2. You Cannot Afford Major Repairs
Similarly to not being able to afford late rent, if a major repair such as needing a new water heater comes up, will you be able to afford it? Tenants don't stay long in properties that aren't maintained well: if you're not able to keep the property in good condition, being a landlord probably isn't in your best interests—for now.
3. It's a Seller's Market
There are times (even recently) when the Plano market is doing so well that it makes sense to sell. If you're going to make more from selling your property than you would from renting it in the next five years, that might be a smart move for you.
Reasons You Should Become a Landlord
We think there are great reasons to become a landlord and rent out your Plano property—one of those is that real estate holdings behave like an oasis for diversifying your investment portfolio.
Buying and holding real estate has consistently been a reliable way to generate long-term wealth.
1. You Like to Plan Long Term
Being a landlord is excellent for people who understand that building wealth through real estate is something done incrementally over time.
As you rent out your property, you begin to build wealth that can lead to purchasing a second property—and the cycle continues. There are plenty of landlords who eventually come to live off the income from investing in Plano real estate—and it starts with just one property.
2. It's a Buyers Market
The Plano market is finally starting to cool off, and times like the Great Recession made it almost impossible to sell a home without taking a loss. During molasses-slow markets, becoming a landlord is a way to generate income from your property—instead of losses.
With the impending silver tsunami, we may again see a buyers market in Plano. Beginning to build your investment portfolio now could make it easier to expand if that happens.
3. You Can Afford To
If you can afford it, then we think that investing in Plano real estate is a smart move. You will still own the property, and if you find after a while that being a landlord isn't for you, you can always sell the property—either to another investor while leased or after the lease expires.
The standard lease is only for a year—so you won't be stuck with an investment that pushes you out of your comfort zone.
Property Management Is an Asset for Your Assets!
When you work with property management in Plano, the risk involved is minimal when trying to decide if renting is right for you.
The first step is to get a FREE Rental Analysis from RentHub Property Management.
- We'll tell you precisely what your Plano investment property will rent for—so you can decide if management services meet your unique needs!
- We work with new landlords all the time, so we'll be able to help guide you through the process: you won't have to worry about anything other than growing your wealth.
- We will professionally list your property, get it ready for tenants, find and screen tenants, and manage your investment from start to finish.