Should You Rent or Sell Your Home in Texas?

When you're moving, keeping your current home as a rental can be tempting. Sometimes it's a smart move. Sometimes selling is the better call. Here's how I help owners think it through before they decide.

Start with the numbers

Compare what the home would likely rent for with what it costs you to own each month:

• Mortgage payment, property taxes and insurance
• HOA dues, if you have them
• Repairs and upkeep, which usually run higher with a tenant in the home
• Vacancy between tenants
• Leasing and property management fees, if you hire help

If rent barely covers your costs, one vacancy or a new HVAC system can put you in the red. A rental works best when there's room in the numbers.

Questions to ask yourself

• Do you need the equity from this home to buy your next one?
• Will you manage the home yourself, or hire a property manager?
• Are you comfortable taking calls about a leaking water heater from another city?
• Do you plan to move back, or hold the home for the long term?

Things to check before you decide

• Taxes: rental income is taxable, and renting the home for several years can affect the tax break many owners get when they sell a primary home. Talk with your CPA before you decide.
• Homestead exemption: once the home isn't your primary residence, your homestead exemption usually ends. Check with your county appraisal district.
• Insurance: a homeowner's policy usually doesn't cover a rental. You'll need a landlord policy.
• Your mortgage: some loans require you to live in the home for a set time. Check with your lender.
• HOA rules: some HOAs limit leasing or set a minimum lease term.

Get both numbers

The easiest way to decide is to see both options side by side. I'll prepare a rent analysis and a home value estimate, so you can compare what you'd earn renting with what you'd walk away with if you sold. Start with a free home value estimate.

Thinking about renting out your home? Call or text me at (512) 629-9050, and we'll look at both paths together.

Trina Heinmiller
Team Lead | Southern Luxe Group | eXp Realty

Landlord's Guide: Step 1 of 8: Evaluate your home and goals
All 8 steps · Next: Step 2: Pricing your rent →

This post is general information, not legal or tax advice. Texas rules change, so check the current law or talk with an attorney for your situation.