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About 10.6 million Americans earn a steady income through rental properties. Whether you join that fraction or put up your land for sale will depend on several factors.
Moving to another location can be exciting for most individuals. However, some homeowners struggle with the move because they find it hard to let go of their rural land. Apart from the financial value, they attach a great sentiment to their property.
You might have to put up the vacant land for rent if you aren’t ready to sell it yet. Let’s take a closer look at whether you should put your vacant land for sale or rent.
Pros of Renting Land
When you put up your land for sale in a buyer’s market, you are likely to get low prices for it. The high supply coupled with the low demand causes the drop in prices. Thus, it’s wise to wait for the supply to wither.
You can lease the land as you wait for markets to improve while you enjoy passive income. Besides, putting up your rural vacant land for rent will increase your equity. So you can have enough to secure a loan with lower return rates in the future.
Cons of Renting Land
If you decide to put up your vacant land for rent, be aware of the responsibilities. It’s a lot of hassle being a landlord but you can outsource a property manager to do the work for you.
Leasing land will come with handling extra financial and legal duties. Besides, some tenants default rent payments or cause extensive damage to your property.
Thus, you’ll have to spend more money on legal fees to evict them. You’ll also have to outsource repair and maintenance services. Only choose to be a landlord when you are sure you can handle the unexpected costs.
Pros of Selling Land
When you put up your land for sale, you’ll get cash in hand within a short time. Better yet, you can avoid third-party transaction costs. Read more on how you can sell land without a realtor.
The cash in hand can help you buy the new house and settle moving costs. If you live in a location where there is high demand, you might even have a surplus after buying your new home.
Moreover, you don’t have to deal with the stress of managing rental properties.
Cons of Selling Your Land
Timing is crucial in the real estate industry. Therefore, when you are selling the house, you can lose some money. Consider several bids before you can settle on an offer.
Besides, you might miss out on a great stream of income by selling the house.
Vacant Land for Rent or Sale
Take your time weighing the pros and cons of both options before making a decision. Whether you put up your vacant land for rent or sale depends on your lifestyle.
If you choose to become a landlord, you can outsource the services of a property manager. However, if you’re experiencing some financial strain, it’s better to sell the house.
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