Your time has come to leave The Big Easy behind. Whether it’s a job that has you relocating or you’re going to travel the world, you’re likely asking yourself “should I sell or rent my New Orleans home?” Well, let’s talk about it!
Do you think you’re going to come back to New Orleans?
If you think you’re coming back to the Crescent City in a few years, hiring a property manager may be better and renting your house out. Prices have continued to rise in the metro area and are unlikely to come down to levels you saw when you made your purchase. Later down the line, if you’re not coming back, your agent can always get it sold for you!
I’m not moving back to New Orleans
Not returning to New Orleans sounds like you should probably go ahead and sell your property. Being a landlord is hard, but being a far away landlord is even harder. You could pay a property management company to handle everything for you, but you should consider selling with no intentions of coming back to New Orleans
Are you upgrading your home?
If you’re moving out of state and looking to upgrade your current home, selling your New Orleans house may help get you there. Prices have risen and you might have some decent equity in your home to help afford that glow-up.
It’s hard to sell a home with a tenant
If you choose to hang to your property and rent it out for a little while, please note that selling with a tenant makes the process more difficult when it comes time to sell. You cannot force the tenant to leave before the lease expires and most new homeowners would prefer the property to be vacant.
But, you might make some money
New Orleans has always been a city full of renters. If your mortgage payment is low, this could be a great opportunity to make some extra funds. We should take a look at the numbers before you decide.
Property managers typically charge 10% of the rent every month and then you’re also billed for all repairs. If you’re not making any money, or very little, after the property management fees – you should likely sell your home.
Other than having to pay a property manager, you will still have repairs and upgrades that have to be done over time. These costs do not disappear just because you’re renting out your home. Since this is no longer your full-time residence, your homestead exemption will be removed. This means your property taxes will rise. Factor that in when making this decision.
Taxes & More Taxes
Income taxes and capital gains taxes should also be factored in when making this decision to rent or sell. Once your New Orleans home is no longer your primary residence, it will then become an investment property. Any income you make will be taxed as such. When you sell the property down the line, you will likely have to pay capital gains taxes on the home.
There are lots of components to think about when it comes time to decide whether to sell or rent your New Orleans home. And we are happy to chat with you about it!
Need to discuss your next steps? Text us now!