Rent vs Sell Calculator – Should You Rent or Sell Your Property?
Compare renting vs selling your property financially
Table of Contents
How to Use
- Enter your property's current market value
- Enter the expected monthly rent you could charge
- Input your remaining mortgage balance if any
- Set expected annual appreciation rate and selling costs
- Choose how many years to analyze
- Review the recommendation and detailed breakdown
Making the Rent vs Sell Decision
Deciding whether to rent out or sell a property is one of the most significant financial decisions a property owner can make. The right choice depends on your financial goals, market conditions, and personal circumstances.
This calculator helps you compare the long-term financial outcomes by considering factors like rental income, property appreciation, selling costs, and ongoing expenses.
Key Factors to Consider
- Current market conditions and property values
- Expected rental income and vacancy rates
- Property appreciation trends in your area
- Ongoing maintenance and management costs
- Tax implications of renting vs selling
- Your need for immediate liquidity
- Time and effort required to be a landlord
Advantages of Renting Out
- Generate passive rental income
- Benefit from property appreciation over time
- Tax deductions for expenses and depreciation
- Build long-term wealth through equity
- Hedge against inflation
Advantages of Selling
- Immediate access to cash/equity
- No landlord responsibilities
- Potential capital gains exclusion for primary residence
- Eliminate property-related risks
- Simplify your financial portfolio
Frequently Asked Questions
- What costs should I include in monthly expenses?
- Include property taxes, insurance, HOA fees, maintenance reserves, property management fees, and any mortgage payments. A common estimate is 1% of property value annually for maintenance.
- What is a typical selling cost percentage?
- Selling costs typically range from 6-10% of the sale price, including real estate agent commissions (5-6%), closing costs, transfer taxes, and potential repairs or staging.
- How do I estimate property appreciation?
- Historical national average is around 3-4% annually, but this varies significantly by location. Research your local market trends or consult a real estate professional for accurate estimates.
- Does this calculator account for taxes?
- This calculator provides a simplified comparison. Consult a tax professional for specific advice on capital gains, rental income taxes, and deductions available to landlords.