Should You Lease or Sell Your Home? Here's What to Consider

July 19, 2025•2 min read

Should You Lease or Sell Your Home? Here's What to Consider

Deciding whether to lease or sell your home can be overwhelming, especially in today’s ever-changing real estate market. Many homeowners face this tough crossroads when considering their financial goals, timing, and local market conditions.

If you’re trying to figure out whether leasing your property or putting it on the market is the right move, here are the key factors my clients and I carefully weigh during the decision-making process.

Leasing Benefits

1. Steady Income Stream
Leasing can create a regular cash flow, especially helpful if the rent covers (or exceeds) your mortgage.

2. Your Home Becomes an Asset
Instead of sitting idle, your home can work for you financially. In some cases, it may even help you qualify for a second mortgage.

3. Flexibility on Timing
Not ready to sell yet? Renting can buy you time for renovations or better market timing. (Just know, renovations with tenants can be tricky.)

4. Tax Advantages
Landlords may qualify for deductions on repairs, property management costs, travel, insurance, and interest.

Leasing Drawbacks

1. Landlord Responsibilities
Maintenance, tenant screening, and ongoing management fall on your plate, or your property manager’s.

2. Liability
You’ll need to stay compliant with current rental and safety codes, which can change year to year.

3. Financial Risk
Vacancies, non-paying tenants, or unexpected repairs can all eat into your profits.

4. Interruptions
Yes, the dishwasher will break at 9 PM. And yes, you’ll probably be the one handling it.

When Selling Makes More Sense

If the market is strong and you can sell above asking price, it might be the right time to cash in. Selling also frees up equity immediately, great if you’re purchasing another property or investing elsewhere.