If you’re a homeowner in South Snohomish County or North King County, you may be wondering if renting out your property could be a better move than selling. It’s a question I hear often in today’s market, especially with many homeowners locked into historically low mortgage rates. While renting can sometimes make sense, it isn’t always the win people expect.
Here are three important things to weigh before deciding:
1. Is Your Home Truly a Good Rental?
Not every house is built for the rental market. Ask yourself:
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Does the neighborhood appeal to renters?
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Does the home need major repairs before tenants move in?
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If you’re relocating, can you manage the property long-distance?
If the answers raise concerns, selling may provide a cleaner path forward.
2. Are You Ready to Be a Landlord?
Renting sounds like “passive income,” but it’s rarely hands-off. You’ll need to handle:
Even with a property manager, you’ll carry responsibility—and management fees usually run about 10% of monthly rent.
3. What Are the Real Costs?
Beyond the mortgage, landlords face:
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Higher insurance premiums (often 25% more than standard policies)
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Vacancy periods where you cover the full payment (especially if there’s unforseen damage at tenant move out)
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Marketing and turnover costs every time tenants move out
These expenses often surprise new landlords and can wipe out the income they expected.
When Renting Can Be a Smart Move
While there are challenges, there are also times when holding on to your home and renting it out may be the right fit:
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Building Long-Term Wealth: If your mortgage is low and rent comfortably covers expenses, you could grow equity over time while tenants help pay down your loan.
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Tax Benefits: Certain deductions—like depreciation, insurance, and repair costs—may reduce your taxable income. Always confirm with a tax professional.
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Flexibility for the Future: If you think you might move back to the area, renting allows you to keep your home as an option down the road.
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Diversifying Investments: A rental property can become part of your financial strategy, giving you both real estate appreciation and cash flow potential.
The Bottom Line
If your home isn’t selling at your current price, it may make more sense to adjust your pricing strategy than to take on the risks of renting. For some homeowners, leasing works as a short-term plan. For others, a well-timed sale unlocks equity and reduces stress.
If you’re weighing the choice between renting and selling in Lynnwood, Edmonds, Mukilteo, Mill Creek, Shoreline, Everett, or the surrounding areas, let’s talk. I’ll help you run the numbers and see what makes the most sense for your goals.
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