Should I Rent Out My Previous Home?

Current homeowners may consider renting out their existing (or previous) home when they shop for a new house. Many people often think that as long as the expected rental income is more than the mortgage payment, then they’ll be profitable.

This is a common mistake because this doesn’t factor in operating expenses rental properties incur, such as vacancies, reserves for maintenance, increased property taxes (since the home will no longer be eligible for a homestead exemption), and more. When these expenses are factored in, the homeowner might realize that the house doesn’t actually cash flow as a rental property. Or if it does cash flow, the profit margin may be less than optimal, and that it might make more sense to the sell the property and use the proceeds to either invest in a different property with better cash flow and profit margin, or a different asset class altogether.

If you’re a homeowner and unsure on whether it makes sense to sell or rent out your home, shoot us a message! We can help run the analysis to help you make an informed decision.

Work With Us

Our expansive network and white-glove service ensure a bespoke experience for both buyers and sellers. Let our top producing team find your dream home today.

Leave a Message

Thank you for your message. We will be in touch with you shortly.

Recent Blog Posts

Houston Housing Market - 2025 Forecast

How to Build A Custom Home

Here's how we got a $25,000 credit for one of our buyers.

ARE HOME PRICES COMING DOWN IN 2024???

Before you work with a realtor you found on social media, do this first!

East Downtown One of Houston’s BEST up-and-coming neighborhoods

Work With Us

Leave a Message

Thank you for your message. We will be in touch with you shortly.

SHOULD I RENT OUT MY PREVIOUS HOME?

Recent Blog Posts

Houston Housing Market - 2025 Forecast

How to Build A Custom Home

Here's how we got a $25,000 credit for one of our buyers.

ARE HOME PRICES COMING DOWN IN 2024???

Before you work with a realtor you found on social media, do this first!

East Downtown One of Houston’s BEST up-and-coming neighborhoods

Work With Us

Get in Touch

Contact Details