Should You Rent or sell your fixer-upper?

Patrick Young

The Mid-Century Meditations Blog welcomes back Guest Blogger Patrick Young of the AbleUSA Blog - https://ableusa.info/blog/

Edited and Formatted by Dawn Torres-Reyes

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To Sell or To Rent : That is the Question

If you have recently purchased a fixer-upper without intending to live in it yourself, you may be faced with the difficult choice of whether to sell it or rent it out when your renovations are complete. After putting so much work into a house, you need to carefully consider both options.

Remodeling Your Fixer-Upper

​Before you can consider selling or renting your fixer-upper, you need to spend the time and money to fix it up. Before you begin the remodeling process, make a list of all repairs needed. Then carefully set your budget, leaving some room for the almost-unavoidable cost overruns. Focus on the most important repairs first, such as those that involve the structure of the house, and then turn your attention to kitchens and bathrooms (which can add quite a bit of value). Lara Baxter of Vivid Bathrooms offers advice for your powder room improvements in her blog articles How To Renovate Your Bathroom On A Budget and 15 Great DIY Bathroom Renovation Ideas. Leave the cosmetic upgrades until the end, and do as many as you can afford.
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If the house is historic, take special care to preserve original fixtures and finishes as much as possible. Period charm and original atmosphere can greatly increase the historic and monetary value of the house.

Selling Your Fixer-Upper

​When the remodeling is finished, you must face the sell-or-rent question. Selling your fixer-upper may be the best option if you don't have the time to manage the property as a rental. You may also want to sell so that you have the money to pursue your next fixer-upper project. To smooth out the sale process, consider hiring a real estate agent who can manage showings, offers, negotiations, and the closing.

Renting Your Fixer-Upper​

If, on the other hand, you want to bring in rental income, you must be ready to accept your responsibilities as a landlord. Thoroughly research the rental laws and regulations in your state before you advertise your property for rent, then develop a strong lease and a list of renter requirements. Plan the time necessary to meet with and evaluate potential renters, and be aware, too, that you must remain in frequent contact with your renters about upkeep and maintenance issues. If this all seems overwhelming, think about hiring a property management company to do much of the daily work for you.

If you are leaning toward renting your fixer-upper, you may choose some improvements geared specifically toward a rental. Put up a fence, for instance, to appeal to renters with kids and pets. You can hire a fencing contractor to help you, but read reviews online before hiring a company, and get any quotes in writing. Also, make sure your chosen contractor is licensed and insured. Fences vary in cost based on size, materials, and location (which must be away from underground utility lines), but they cost about $4,500 on average.

Renting Your Fixer-Upper : Option Two

If you don't want to rent out your fixer-upper in the traditional way, consider listing it online as a vacation rental. This can be especially lucrative in a highly visited area like San Diego, especially when close to beaches and other sights. Be specific about the kinds of renters you allow in your house and thoroughly clean and inspect your property after every rental.

Making the Choice to Rent or Sell Your Fixer-Upper

Selling or renting your fixer-upper can be a tough call, but if you carefully consider every factor involved, you're well-equipped to make the right decision. Ready to furnish your property? Explore Danish Modern San Diego’s inventory of unique furniture!