The California rental market is unpredictable, and while it may be a hot seller’s market today, there’s no telling what things will look like in a month or a few months, when interest rates have begun climbing. If you’re having trouble selling your San Jose/Silicon Valley home, you might want to consider renting it out. This is much better than leaving it vacant on the market, dropping your price, or dealing with the multiple frustrations of not being able to sell it as quickly as you were hoping.
Consider the San Jose and Silicon Valley Market
Everyone knows that California is an expensive market to enter, especially in San Jose and the surrounding areas. If you hold onto your property, you’ll enjoy the benefits of owning real estate without a lot of the expenses included in buying it. You’ve already made your down payment and put some money into maintaining it. If you’re relocating and you might come back, you’ll want a home you can potentially move back into. Buying a new home in a year or five years might be even more expensive. Keeping your current property means you’ll have options down the road.
Renting out your property when it doesn’t sell allows you to maintain flexibility. If you decide after one year that renting it out isn’t for you, it’s possible to sell then. You don’t have much to lose when you’re renting out your San Jose or Silicon Valley home.
Tenants are Contributing to Mortgage Payments and Property Expenses
Renting out your property means you’re keeping your asset and you’re welcoming tenants to help you pay for it. With high quality, stable residents in place, they’ll pay rent and keeping the home maintained. You don’t have to worry about the risks and expenses of vacancy. They’re paying down your mortgage and helping to cover the costs of taxes, insurance, HOA fees, and other homeownership costs.
San Jose Real Estate Increases in Value
Appreciation is easy to count on in California. Your home will almost certainly be worth more in a year, five years, or 10 years. Selling it now would require you to maybe earn some money, but not as much as you’d earn with a few extra years of equity.
Unlike the stocks and mutual funds that likely make up your investment portfolio, the San Jose or Silicon Valley home you’re renting out is a tangible asset. It is a good bet against inflation, and a need for well-maintained rental housing will always exist, even as the market rises and falls. Renting it out will earn you more money.
Talk to a San Jose Property Manager
Many owners hesitate to rent out their property because they’re worried about the headaches and hassles that come with being a landlord. It’s difficult and even risky to rent out property in today’s market – we get it. Using a professional San Jose property management company will ensure that you don’t have to do anything. Your property managers will find a great tenant, collect rent and deposit it into your account, and protect your investment.
We’d love to tell you more about why renting out a home helps you financially. Please contact us at 408-272-4100 or info@abornproperties and we can talk about what the rental market and sales market means for your investment property.