Should I Sell My Place or Rent It?
by Jacques Ambron
Sep 05, 2017 | 1740 views | 0 0 comments | 185 185 recommendations | email to a friend | print
Jacques Ambron is executive director of sales for Halstead  Forest Hills LLC.
Jacques Ambron is executive director of sales for Halstead Forest Hills LLC.
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Q. I’m planning on moving my residency to another state. I’m not sure if I want to keep my place here and rent it out for income. What are the positives and negatives?

A. First of all, congratulations on your move. There are a number of considerations here. On the positive side, if your expenses are reasonable and you can get a good rent, you will realize income from it.

On the other side, you will probably need to hire a property manager. This can run 6 to 10 percent of the rental amount. Additionally, you will be responsible for repairs and upkeep, periodic painting and insurance premiums, among other expenses.

Some other considerations: If you change your mind and decide to sell at some point, you will have to pay a non-resident tax on the sale of the property. This is almost 9 percent of the adjusted sale price.

Also, if the sale of your property would result in a capital gain, you would lose the one-time tax credit afforded to sellers of their primary residence.

For a single person owner, that would be $250,000 and for a couple $500,000. You should discuss this with your accountant ,as there may be other ways to structure it if you decide to retain your home.

Please send real estate-related questions directly to jambron@halstead.com.
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