The short answer
If you need the cash from the sale, sell. If you don't, your mortgage rate is low, and the rent covers your costs with room to spare, renting is often the better long-term move.
Selling usually makes sense if
You need the equity for your next home or a big expense.
The rent would not cover your monthly costs.
You have little or no cash set aside for repairs.
Renting usually makes sense if
You don't need the cash right now.
Your mortgage rate is well below today's rates.
The rent covers your costs with room to spare.
Five questions to answer first
1
Do you need the money now?
A sale gives you a lump sum for a down payment or a large expense. Renting does not. If you need the equity for your next home, that usually settles it.
2
What is your mortgage rate?
Many Upstate owners locked in rates well below today's. Selling gives that rate up for good. Keeping the house keeps the low rate working for you while a tenant pays down the loan.
3
Does the rent cover the costs?
Add up the mortgage, taxes, insurance, HOA dues, management and a monthly allowance for repairs. Compare that with a realistic rent, not the highest listing you can find.
4
Do you have a cushion?
Rentals have vacant months and surprise repairs, like an HVAC failure or a water heater. Plan on several months of expenses in reserve before you rent.
5
Is the house ready to rent?
Working smoke and carbon monoxide detectors, safe electrical and plumbing, and clean, working appliances are the minimum. Our rent ready standards list what we check.
What changes when your home becomes a rental
Property taxes. South Carolina assesses a primary residence at 4% and other property, including rentals, at 6%. Your tax bill usually goes up once the home is no longer your primary residence, so ask the county assessor for an estimate.
Insurance. You will need a landlord (dwelling) policy instead of a homeowner's policy. Get a quote before you decide.
HOA rules. Many newer Upstate neighborhoods have HOAs, and some limit or restrict leasing. Read your covenants first.
City or county. Rules can differ between a city and unincorporated parts of the county. Check what applies to your address.
If you might sell later
Renting now does not lock you in. Under IRS home sale rules, if you lived in the home for two of the last five years, you may still be able to exclude much of the gain if you sell within about three years of moving out. Ask your tax advisor how this applies to you. When you are ready to sell, we refer you back to your real estate agent.
We are property managers, so we are not neutral. That is why we start with the numbers. This page is not financial, legal or tax advice. For what management costs, see our Greenville pricing.
Get your numbers
See what your home could rent for, then call our Greenville office at 864-400-2493 and we will walk through rent versus sell with you.
Get a free rental analysis
