The California real estate market is always competitive. Lately, it has had some periods of unpredictability, with inflation pushing prices higher and interest rates making mortgages more expensive.
If you’re having trouble selling your home, the problem is not necessarily with your home. It’s more than likely a market issue.
So, what can you do when you cannot seem to sell your property or attract the asking price that you want?
Once option is to rent the property out. There’s no telling what the real estate market will look like in a month or a few months, and you’re not alone if you’re struggling to understand why your home isn’t selling.
If you are having a terrible time selling your property, we like the option of renting your home out - at least until market conditions improve. This is much better than leaving it vacant on the market, dropping your price, or dealing with the multiple frustrations of not being able to sell it as quickly as you were hoping.
Understanding the Palm Springs Sales and Rental Markets
Before you can make an informed decision, you have to understand how market and economic factors are affecting whether or not you can sell your home in Palm Springs. You’ll always find a buyer, but will you get the price you want? In many ways, we are still enjoying a competitive market with higher than average sales prices and home values. It’s still possible to sell your home and make some money. The difference now is your buyer. With the Federal Reserve raising interest rates multiple times towards the end of 2022, the dynamic changes in the sales market. It’s now more expensive for buyers to obtain home loans. Therefore, they won’t be willing to overspend on the house they buy. A lot of buyers have decided to put their home buying plans on hold. There are still plenty of real estate investors in Palm Springs who can pay in cash. If you can attract one of those buyers to your home, great. But, if you can’t, you should rent now and sell later. That’s the sales market. What about the rental market? That’s where we have a lot of good news. The rental market is incredibly strong. All of those home buyers who are putting off their plans to buy are actually remaining in the rental market. The large pool of tenants and the demand for well-maintained rental homes in Palm Springs has pushed rental prices higher. You’re going to earn more than you might have imagined by renting out your house. Landlords and rental property owners are earning more than they ever have on Palm Springs rents. They’re also enjoying a low vacancy rate and a high retention rate. Tenants are staying in place, even when the rent goes up at renewal time. They know that prices are higher, so they stay in their homes and renew their lease agreements. If you do decide to rent out your home, you’ll have no trouble finding a good tenant and collecting a healthy and recurring rental check.Good Reasons to Rent out Your Palm Springs Home
If you cannot sell your home right now in this market, you have several good reasons to rent it out. Some of the benefits to renting your property include:- Your property will continue to appreciate in value as you rent it out.
- Your tenants will be paying down your mortgage and contributing to your expenses.
- You’ll build more equity while you rent out your home.
- You’ll collect a monthly rent check.
- You can benefit from tax breaks and write-offs.
Renting Out Your Palm Springs Home: How to Get Started
There’s not much you need to do once you decide to rent your home. We’re betting it’s already in good condition, because you probably made a lot of repairs and cosmetic improvements since you were thinking about selling.
As your property management partners, we will take a look at what you’re working with and make sure your home has a good chance of appealing to Palm Springs tenants. If we recommend any additional upgrades or cost-effective renovations, it’s because we know what will help you earn more rent and attract better tenants.
Next, we’ll market and advertise your rental property with professional-grade photographs, a concise and compelling description, and a listing that shows up on all the most popular rental sites. We’ll post it on our own website as well and share it on social media. It won’t take us long to find a qualified resident for your home.
Once we have approved and placed a good tenant, we’ll take care of the day-to-day requirements of effectively managing a property. We’ll take care of rent collection, lease enforcement, financial reporting, and tenant communication. We’ll keep you in the loop and continually evaluate the market as well as your own financial and investment goals. You might be ready to sell the home again in just a year or two. Or, you could potentially determine that you like the investment income that comes with renting out a property and we’ll talk about long-term strategies.
We know this can be a stressful time for you, especially if you were really hoping to sell. Let’s make things better and start renting out your home. Contact our team at Xepco Properties.
