If you’ve had an Oahu vacation home that’s spent more time vacant than occupied, you may be thinking about selling it. That’s one option, but it’s not the only option. You can also rent it out, which would allow you to earn some money on the property while holding onto the asset in case you get to a point later in life where you’ll be enjoying your vacation home a little bit more.
At Elite Pacific Properties, we work with out-of-state landlords all the time. Whether it’s providing leasing and management services or sharing our expertise on local investment opportunities and market trends, we’re able to work closely with our clients no matter where in the world they happen to be located.
If you’re wondering whether to rent or sell your Oahu property, contact us at Elite Pacific Properties. We can talk about your specific needs in greater detail.
Financial Reasons to Sell Your Oahu Property
When the sales market is strong and home prices are in your favor, selling can be an excellent way to earn money and walk away from the responsibilities that come with owning a property that you’re so far away from. Maybe you need the money you’ll make on a sale to send a child to college or put a down payment on a new home. There might be other investment opportunities you’d like to explore.
Whatever your reasons for needing a quick and predictable sum of money, selling your property can deliver that. If you have enough equity in the home and you know the sales market will deliver the price you want, selling is an easy way to move on.
Renting Your Oahu Home for Rental Income and Long Term Growth
If you don’t need a quick influx of cash, however, we always recommend owners consider holding onto their properties.
There are many financial benefits to renting out your property. You’ll be able to earn a reliable rental income every month and your asset will continue to appreciate in value, delivering a larger payoff when you finally sell in a year or five years or 10 years.
The rental market is always changing in Oahu. We have tenants looking for long term homes and we also have tourists and vacationers looking for short term properties. There’s always a high demand for well-maintained homes, and the island does provide a well-qualified and reliable pool of tenants. Rental prices are high and stable, and when you can attract and retain great tenants, they will help you pay off your mortgage while your property’s value continues to rise.
Renting Out Your Home Increases Tax Benefits
There may be a capital gains tax on the sale of your home, whereas with rental property, you’re able to take a lot of deductions. You can deduct the home’s depreciation, which is pretty generous by IRS standards, and you can also deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. These write-offs help to reduce your overall tax liability.
Renting with Professional Oahu Property Management
Selling is better for you if you’re emotionally attached to your property and you don’t think you’ll be able to treat it like a business.
If you want to rent out the property and you’re out of the area, your best chance at success is to hire a professional Oahu property management company. This makes sense for you when you decide to rent instead of sell.
If you’re still trying to decide whether you want to rent or sell your vacant Oahu home, don’t hesitate to contact our team at Elite Pacific Properties.