When moving out of a primary residence, most homeowners make the obvious decision to sell their current property. But is that really the best choice for you? The answer, of course, depends on many factors -- your current financial and housing situation, the real estate and rental market where you live, and several others that can add up to help you make a decision about what to do. If you know you're going to be leaving a house that you own and currently live in, consider how renting it instead of selling it might benefit you -- or whether it would be too much trouble and not lucrative enough to bother with as an option. To determine what choice is the best one for you and your current situation, ask yourself these questions and then move forward with whichever path is going to serve you better long-term. **Will you make a profit if you rent?** This is arguably the biggest, most important question to answer before you move on to other factors involved in your decision, and the variables that will influence your profit (or loss) can be complicated, so make sure you spend plenty of time figuring out what a realistic profit would look like and whether you can make it happen. **Do you need the money from a sale sooner rather than later?** When you have debts that need to be paid or you can't afford the mortgage on your home anymore, it probably makes more sense to sell the property instead of trying to rent it out. **Will you want to move back in eventually?** Another important factor to consider is whether you'd want to move back into your house eventually. If you're moving out of the area, but there's a chance you might want to return at some point, then keeping the house and renting it out will probably ultimately be cheaper for you long-term than selling your house. **Can you improve or update the house right now?** Homes that sell the most quickly and for the highest prices in any market are always the nicest, most updated homes available for buyers. If your home doesn't measure up to the neighbors in terms of the appliances and updates, and if you really don't have the money or the interest in fixing or renovating your house, then renting might be a good choice for you. **Do you want to live a landlord life?** If you don't want to hire a property manager, it's important to ask yourself whether you'd feel comfortable or would enjoy being a landlord. **What's the real estate market doing?** There's no single indication that you should sell or rent depending on the real estate market's current activity, but it can definitely help inform your decision. **How about the rental market?** Some rental markets are healthier than others, and if yours isn't looking all that robust, then now might be a good time to sell instead of count on the rental market improving. **Can you afford capital gains tax if you sell later?** If you sell a home that you own but haven't been living in for the past two years, then you'll have to pay capital gains tax on any profit you make from the sale. **Are you going to buy or rent another house to live in?** When you leave this house, you're going to have to find somewhere else to live. If you're planning on renting a house wherever you go, then it might make sense to in turn rent your house out to someone. **Can you healthily absorb a financial hit or two?** Renting a house that you own includes lots of surprises, most of them not so pleasant. Can you afford to replace a water main if it breaks, handle a month or two of mortgage payments if the place is vacant, and replace the carpet and paint the walls in between tenants?
