How to Determine If You Should Sell or Rent Your Fort Lauderdale Property

Florida PMServices • January 1, 2021

Fort Lauderdale real estate is profitable. It’s a popular tourist area, which means visitors are always looking for short term rentals. There’s also a growing population of long-term renters looking for well-maintained homes in good neighborhoods.

If you’re wondering whether you should sell or rent out your own property, the first thing you’ll need to do is examine your own investment goals. Selling would mean an instant profit, especially if the market is working in your favor and you have some equity built up. Renting would mean cash flow and appreciation. You’d hold onto a valuable asset.

There are pros and cons to both scenarios. Before you make the decision, consider your personal investment goals and financial position. Then, decide whether you think you’ve finished completely with this home or you still have more money to earn from it.

Evaluate your Current and Future Investment Goals

If you’re deciding whether to rent or sell a home that you’ve been living in yourself, there may be an emotional component to your decision. Are you moving out of it because your lifestyle is changing and you need a bigger or a smaller property? Or, are you moving out of the area? If you’re moving out of Fort Lauderdale, do you think you’ll ever come back to south Florida?

Selling may be the best option if this property is a personal home and you’re planning to move into another one. However if it’s an investment property or has the potential to earn you attractive returns, renting it out may be the better option.

This is a personal decision that only you can make.

Why You Should Sell: Cash and Freedom

If you have a lot of equity in the property and the Fort Lauderdale sales market is strong and can provide you with the asking price you’re hoping for, selling is an excellent idea. Perhaps you need an influx of cash to send a child to college or put a down payment on another property. If you have the equity that will deliver a healthy profit and you want to do something else with the money, selling might be your best strategy.

Selling the property also means you get to walk away from it. You won’t be responsible for tenants or maintenance or any of the other headaches that can often come with renting. If you have other investments that are serving your portfolio better and you’re ready to move on, go ahead and sell, especially if the market is going to demand a great price for your property.

Reasons to Rent: Long Term Gains and Tax Benefits

There are some even better reasons to hold onto the property and rent it out. For starters, that asset will increase in value, so even if you have a lot of equity and you could make a lot of money on the sale, you can probably make even more in the future. When you have a tenant renting your home, that renter is paying a good chunk of your mortgage and covering a lot of your investment expenses. That’s a huge benefit. You can count on regular rental income and a lower mortgage the longer you hold your investment.

There are also many tax benefits to renting out your property. If you sell, you may be subject to capital gains taxes. As a landlord, you can deduct depreciation and also use the costs of maintenance and professional services like property management to offset your taxable income.

We’d be happy to talk to you about the benefits of renting or selling your Fort Lauderdale property. Please contact our team at Florida Property Management Services.

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