When you’re ready to move, deciding what to do with your current home is one of the biggest decisions you’ll face. In Columbus, Ohio, this choice has become increasingly complex as more homeowners are considering renting out their homes instead of selling.
Recent data from Zillow reveals that 66% of sellers thought about renting their home before listing, with nearly a third taking the possibility seriously. This is a noticeable increase from 2021, when only 47% considered renting first.
So, should you sell your house and use the proceeds to fund your next purchase, or hold onto it as a rental property to build long-term wealth? Let’s explore the key questions to help you make the right decision for your goals—especially in the Columbus real estate market.
Is Your Home a Good Fit for Renting in Columbus?
Before diving into the rental market, it’s crucial to determine if your home is a good fit for renting.
Location Matters
Columbus has thriving neighborhoods like Short North, German Village, and Grandview Heights that are highly desirable for renters. However, if your home is located in a less sought-after area or lacks proximity to amenities like schools, parks, or public transit, renting it out may be more challenging.
Maintenance and Distance
If you’re relocating out of Columbus or even further, managing the upkeep of your rental property could quickly become a burden. Consider whether you’re prepared to handle emergency repairs or hire a property manager.
Home Readiness
Does your home need significant repairs or updates before it’s rental-ready? In neighborhoods where renters have high expectations—like Dublin or Westerville—you might need to invest in renovations to make your property competitive.
If these challenges feel overwhelming, selling your home might be the better option.
Are You Ready for the Realities of Being a Landlord?
Managing a rental property is more than just collecting rent checks—especially in a growing city like Columbus.
Time Commitment
Owning a rental property means dealing with maintenance calls, tenant complaints, and occasional emergencies. As Redfin points out, landlords must handle unexpected repairs, such as:
- Broken HVAC systems during cold Ohio winters.
- Plumbing issues that disrupt daily life.
- Roof or structural damage caused by harsh weather.
If you don’t have the time or funds to handle these responsibilities, renting might not be the right choice.
Tenant Risks
Even in a stable market like Columbus, there’s always a chance that tenants could miss payments, break leases, or cause property damage. Are you financially and mentally prepared for these possibilities?
Do You Understand the Costs of Renting your Home?
While renting out your home can provide passive income, it’s essential to understand the expenses involved.
Fixed Costs
- Mortgage and Property Taxes: These remain your responsibility, even if your rental income doesn’t fully cover them.
- Insurance: Landlord insurance costs about 25% more than standard homeowner policies.
Maintenance Costs
Plan to set aside at least 1% of the home’s value annually for maintenance—more if your home is older or has unique features like a pool or historic architecture.
Tenant Turnover
Vacancies between tenants can cost you time and money. You’ll need to cover the mortgage and invest in marketing the property until a new tenant moves in.
HOA and Property Management Fees
If your home is in an HOA neighborhood, additional fees apply. Hiring a property manager, while convenient, typically costs about 10% of your rental income.
Should You Rent or Sell Your Home in Columbus?
Ultimately, the decision to sell or rent your home comes down to your financial situation, lifestyle, and long-term goals. If you want a simpler path with fewer risks, selling might be the way to go. Columbus is a hot market with rising home values, making it an excellent time to capitalize on your investment.
Ready to Make Your Decision?
When you’re ready to move, Sell For 1 Percent Realtors is here to guide you. Our team specializes in Columbus, Ohio, helping homeowners save thousands with our full-service 1% commission model.
Whether you decide to sell or rent, we’ll provide expert advice tailored to your situation. Contact us today to start your journey—and take advantage of the incredible opportunities in the Columbus real estate market!
