I remember being out to lunch with a group of coworkers sometime around 2012 when I still worked in the city – we went around the table and there were about 6 people there and everyone was an “accidental landlord” –
Most people owned their first condos and had started having kids and were moving to bigger places or out to the burbs. These were places bought in like 2004, 2005, 2006 and would not sell anywhere close to what we’d paid for them. So, people were riding out the downturn as accidental landlords rather than taking a hit on the sale of the property. This was a reasonable strategy for the time if you could swing it. And being a condo landlord is easier if you have onsite maintenance, a door person, etc. But there is so much more than collecting a rent check and fixing a toilet once in awhile.
Today – I am seeing people considering being an unplanned landlord again. I wouldn’t call it as accidental this time but more opportunistic.
I hear it all the time – if I WERE to move – I wouldn’t let go of this great interest rate- – even if it’s not something you have talked about – this is on many of your minds especially if you are close to selling…
Should you sell or should you rent it out?
I get it.
70% of loans have interest rates under 4% and 90% are under 5% – so it only makes sense that you want to hang on to that rate and make some money off a rental.
There is more to being a landlord other than just what your rate is versus what you would earn in rent – and you’ve accumulated some sweet equity in the last 5 years.
Let’s talk if you are in a position to evaluate this – I own both short and long term rentals and have been an accidental landlord. I can help you with the financial side of this including evaluating an equity cash out as well as share some stories to help you evaluate your choices.