Should You Rent or Sell Your Nashville Property?

July 14, 2023 TCSMgmt

Should You Rent or Sell Your Nashville Property?

Should You Rent or Sell Your Nashville Property? - Article Banner

Are you moving out of your Nashville home? This could be due to any number of reasons, and the reason itself may determine whether you sell or rent out your property. 

Maybe your family is growing and you need more space. Or, all the kids have moved out and moved on, and you’re hoping to downsize. These are good reasons to sell and buy something else. Or, maybe you want to keep the property and continue to earn money from it. 

Perhaps you’re relocating to another city or state. That will impact whether you sell your Nashville home or rent it out. Maybe you just want to live in a new home that you’ve had your eye on for a while. 

Whatever your reasons for packing up and moving on, you need to decide what to do with the house that has been your home. Selling it is one option. But before you do that, consider another option. You could rent it out.

Today, we’re discussing how you should decide whether selling or renting out your Nashville home makes more sense.

The answer, of course, will depend on you. There’s no one way to do it. We are sharing some of the things you should think about.

Before You Decide: Establish Your Now and Future Plans

Planning for the future isn’t always easy, but when you’re trying to decide what to do with a piece of property, you’ll at least need to know where you want to be geographically. If you’re moving out of the area, think about whether you plan to return and if so, when that will be. If you’re relocating for work or school or because your remote work situation is making it possible to live anywhere you want, you may have the expectation that you’ll live in Nashville again. 

This would be a good reason to hold onto your home and rent it out. You know that when you return, your home will be waiting. Even if you decide to buy a different home when you return to Nashville, holding the property will have allowed it to appreciate in value. So, selling it later instead of right now might be a better deal in the long term.

But if your plans do not involve returning to Nashville, you might be ready to move on entirely. That could be a good reason to sell; because if you have no real desire to keep this house for yourself or a family member in the future, you can walk away from the asset and the area free and clear by selling it. 

Why You Should Sell a Nashville Property: Equity and Earnings

When the sales market is strong and home prices are in your favor, selling can be an excellent way to earn money and walk away from the responsibilities that come with owning a property

The market is shifting a bit, but it’s still a great time to sell. 

Many owners decide it’s better to sell when they have a large expense that’s looming such as college tuition. If you need to amass some cash to pay for the down payment on a new property, selling might be your best bet. Maybe there are other investment opportunities you’d like to explore. If that’s the case, you can access the equity in your home to make some money right now.

Selling the Nashville property that you no longer want to live in can deliver a predictable sum of money. If you have enough equity in the home and you know the sales market will deliver the price you want, selling is an easy way to move on.

Renting Your Nashville Home to Earn Rental Income and ROI 

There are many financial benefits to renting out your property:

  • You have the potential to earn consistent monthly rental income. 
  • Your asset will continue to appreciate in value.
  • You’ll have a tenant contributing to the mortgage and expenses of that asset. 
  • You’ll continue earning equity, ensuring a larger payoff when you finally sell in a year or five years or 10 years. 

The rental market is always shifting in Nashville. But, there will always be a high demand for well-maintained homes, and we have always been able to rely on a well-qualified and reliable pool of tenants. 

Nashville Rental Properties Deliver Tax Benefits 

Are you thinking about taxes? 

You should be. 

Selling a property will have tax consequences. Renting out a property will require you to declare the rental income, but it will also provide you with some tax benefits. 

There may be a capital gains tax on the sale of your home, whereas with rental property, you’re able to take a lot of deductions. When it’s a rental, you can deduct: 

  • The property’s depreciation, which is pretty generous by IRS standards.
  • Any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. 
  • Mortgage interest and taxes.
  • Travel to and from your rental property. 

These write-offs help to reduce your overall tax liability. Talk to your CPA or financial advisor before you make the decision to sell your property or rent it out.

Nashville Property Management Partners

Selling is better for you if you’re emotionally attached to your property and you don’t think you’ll be able to treat it like a business. No one wants an overbearing landlord. 

If you want to keep the property and you’re not sure you can be objective, hire a professional Nashville property management company

If you decide to rent out the home but you’re not sure you have the time or resources to do it effectively, hire a Nashville property management company. 

Professional property management makes sense when you decide to rent instead of sell. The laws are always changing, and it’s time-consuming to keep up with tenants and their needs. Managing on your own can be difficult, and it’s easy to make an expensive mistake. Property management is a valuable service, and we’d be happy to tell you more about it while you make your decision. Please contact us at TCS Management. 

TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware, Nashville, Tennessee and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.

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