Should I Rent or Sell? Why Becoming an “Accidental Landlord” Might Be Your Best Bet.

As a homeowner in San Diego, deciding whether to sell or rent your property can be a tough call—especially when you’re locked into a mortgage rate of 2% or 3%. These low interest rates were a huge win when you bought your home, but they can make the decision to sell tricky. Letting go of a mortgage rate like that feels a little like giving up a golden ticket.

So, is selling your only option? Not necessarily. With high demand for rental properties in San Diego and the potential for high rental income, there’s a compelling alternative: becoming a landlord. Find out what your property might rent for HERE.

Why Renting Makes Sense Right Now

With your low mortgage rate, your monthly payments are likely much lower than they would be if you purchased at today’s rates. This gives you a unique edge when it comes to rental income: you can command competitive rental rates without struggling to cover your mortgage. Here’s a look at the top benefits of becoming an “accidental landlord” in this market.

1. Monthly Cash Flow

San Diego’s high demand for rentals means you could earn significant rental income. With your low mortgage rate, the rent you receive could easily exceed your monthly mortgage payment, leaving you with additional cash flow. In today’s rental market, that extra income can add up quickly, covering property expenses and potentially even contributing to your own savings.

2. Keeping Your Low Interest Rate

Selling means losing that rock-bottom interest rate, which is unlikely to be available again anytime soon. By renting out your home instead, you retain that rate while leveraging today’s high rents. You essentially get to “keep” the low rate without giving up your property.

3. Property Appreciation Over Time

San Diego’s real estate market has a track record of long-term appreciation. By holding onto your home as a rental, you’re keeping an asset that could increase in value over time. Even if the market experiences ups and downs, owning a rental property is often a sound long-term investment. And if you ever decide to sell, you could benefit from an increase in property value.

4. Tax Benefits

As a landlord, you can deduct various expenses related to your rental property, such as property taxes, mortgage interest, maintenance costs, insurance, and even property management fees if you hire a company to manage your rental. These tax benefits could help offset your income, making the property even more profitable.

5. Flexibility to Move Back

Maybe you’re relocating for work or personal reasons, but there’s a chance you’d like to return to San Diego someday. Renting your home allows you to hold onto it for the future, offering a convenient option if you ever want to move back. Plus, by holding onto the home, you don’t need to buy a new property at potentially higher rates if you decide to return.

Overcoming the Hurdles of Landlording

Becoming a landlord isn’t for everyone—it can come with responsibilities like maintenance, tenant management, and legal compliance. But you don’t have to manage everything on your own. Hiring a professional property management company can make the process smooth and stress-free, allowing you to enjoy the benefits of being a landlord without the headaches.

Final Thoughts: Is Renting or Selling Right for You?

Before you rush to sell, consider all the options and weigh the benefits of holding onto your property as a rental. With low mortgage payments and high rental demand in San Diego, becoming an “accidental landlord” could be a rewarding, profitable move.

If you’d like help evaluating your options, reach out to us at Rancho Coastal Properties. We specialize in guiding homeowners in situations like yours, helping them make the most of today’s market. Let us help you decide if renting is the right path for you! Click HERE to get a FREE Rental Analysis on your property today, or call (760) 822-1528 with any questions.