{"id":2740,"date":"2023-01-25T10:00:00","date_gmt":"2023-01-25T15:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2740"},"modified":"2024-04-25T23:18:10","modified_gmt":"2024-04-26T03:18:10","slug":"leaving-my-condo-should-i-sell-or-rent-it-out","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/leaving-my-condo-should-i-sell-or-rent-it-out\/","title":{"rendered":"Leaving My Condo: Should I Sell\u2014Or Rent It Out?"},"content":{"rendered":"\n
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Moving out of your condo? Wondering if holding onto it and renting it out could be a better move than selling it?<\/p>\n\n\n\n

You\u2019ll find pros and cons to both options. Let\u2019s explore a few of them.<\/p>\n\n\n\n\n\n\n\n

Threshold Question: What Does the Condo Policy Say?<\/h2>\n\n\n\n

Your first move? Speak with the board and management before getting your heart set on keeping your condo as an investment property. Whether you can actually rent out your condo after moving out depends on your condo property\u2019s rules<\/a> and its current policy.<\/p>\n\n\n\n

\u201cCurrent policy\u201d is a key term. What your property allows this year might differ from last year. Limits on the number of rental units on the property can change.<\/p>\n\n\n\n

Why? Condo properties sometimes reach their allowed limits for non-occupant owners \u2014 meaning letting someone rent out even one more unit would be a problem. A blanket approval for FHA<\/a> financing, for example, limits the percentage of a condo property\u2019s units that may be rented.<\/p>\n\n\n\n

So\u2026ask where you stand, and whether your ideas fit in with the plans of your property managers.<\/p>\n\n\n\n

Money Matters: How Much Can You Gain From an Immediate Sale?<\/h2>\n\n\n\n

Selling your home could pay off very well after the recent surge in real estate values. Those who sell now will most likely have ample opportunities to buy investment properties later.<\/p>\n\n\n\n

Could later buying opportunities get a little cheaper? Possibly. That\u2019s especially possible in markets that soared in 2020-21. But overall, who can say how real estate will do in the next few years<\/a>?<\/p>\n\n\n\n

Consider talking with a local agent. Go over any advantages and drawbacks of selling quickly or slowly in your area.<\/p>\n\n\n\n

What if you learn of exceptionally strong reasons to think your condo property\u2019s values will appreciate substantially over the next few years? If that\u2019s the case, you could hold it as an investment property now, then sell when values rise.<\/p>\n\n\n\n

On the other hand, those who can make a good profit now might feel entirely happy selling their condos. And of course, liquidating a property\u2019s value is helpful to anyone looking to buy their next home.<\/p>\n\n\n\n

In any case, those who do sell for a profit can also benefit from the federal capital gains exclusion<\/a>. (Note that state taxes and exclusions might be less generous.) To benefit from the standard IRS capital gains exclusion, the condo has to have served as the taxpayer\u2019s main home for two of the past five years, or more.<\/p>\n\n\n\n

Next, you\u2019ll want to compare the benefit of gains you\u2019ll get from a sale to the benefit of income you\u2019ll get if you rent the place out. So let\u2019s take a look\u2026<\/p>\n\n\n\n

Adding It Up: The Right Condo, in the Right Spot, Can Be a Sustainable Income Source <\/h2>\n\n\n\n
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So much hinges on location. If\u2026<\/p>\n\n\n\n