Rental properties,  Sell

Selling or renting a home: Advantages and disadvantages

Are you thinking of moving home because you need more square meters, or have your personal circumstances simply led you to make a change? If you find yourself in this situation, you will surely have doubts about what to do with your current home. Should I sell or rent my house? In this article you will be able to solve all your doubts once you know the advantages and disadvantages of both options.


Advantages and disadvantages of selling a property


Pros of selling a home

  • Have money instantly: Selling a house is one of the best ways to get liquidity quickly, at the time of signing before a notary.
  • Great benefits: If you manage to find the optimal time in the market to sell your property, and its location has appreciated in recent years, it is possible that you will obtain an amount greater than what it cost you.
  • Tax advantages: It is possible to get tax advantages, if the home you put up for sale was your usual home, and if you are going to invest the money you get in buying another house. For example, at the time of making the income statement, you may be exempt from taxing capital gains, or you can also request a bridging mortgage.
  • Avoid problems with inheritances: If the house that you are going to sell is part of an inheritance, selling it is the best way to avoid problems, since renting a property among several people can become very complicated and not at all profitable.
  • Fewer worries: When selling the house you will have fewer headaches, since you won’t have to worry about maintaining it, or about the tenants, or expenses, etc.
  • Avoid property expenses: Finally, when selling your home you will also put aside long-term expenses, such as: taxes, maintenance services, monthly payments from the neighborhood community, spills…


Cons of selling a home

  • Loss of assets: Selling a house implies never having it again. This can be a problem in the future if you are going through a bad economic time and need an extra income. Therefore, it is important that you first analyze what your long-term needs are.
  • Difficulty finding buyers: Possibly the most difficult thing when selling a property is finding viable buyers. This in turn entails a longer waiting time and during that time you must continue to pay all expenses.
  • Cancellation of the mortgage: In the event that you sell an apartment that is still mortgaged, and the new owner does not want to extend the mortgage, you will have to face the expenses involved in canceling the mortgage, due to early repayment interest.
  • Payment of taxes for the capital gain: If after selling you are not going to invest that money in buying another home, you have to remember that you must reflect that gain in your next income statement, and, therefore, pay the due taxes to the Treasury.
  • Procedures of the sale process: The procedures of the purchase-sale process that involve the participation of bureaucratic agents can take a long time and delay the transaction.


Advantages and disadvantages of renting a property


Pros of renting a home

  • You keep the property: This is the biggest difference between selling or renting a home. In the event that you decide to rent, you will only be giving up its use, so you can continue to have it at any time you want, such as during vacation periods.
  • Get benefits continuously: Having a rental property is a passive income, which means that you will enter an amount of money on an ongoing basis.
  • It can help pay the mortgage: Related to the above, by acquiring an income on a monthly basis, it will help you save to pay your mortgage.
  • The house can serve as guarantee: If you are about to request a bank loan, your apartment can serve as a guarantee so they grant it to you.
  • Less paperwork: Contrary to what happens, if you decide to sell when renting a home, the necessary paperwork is much simpler and, therefore, it is rented faster.
  • It is not final: The decision to rent is much more flexible than if you decide to sell, since you will always have the option of putting it up for sale. However, when you sell you can no longer back out because you lose power over the property.


Cons of renting a home

  • Risk of squatters: Although it is true that nobody likes to have squatters, the risk of having them if your house is empty for a long time is always there. If you do not detect them in time, it can take months to recover your property.
  • Possible problems with tenants: It is not always easy to find decent tenants or it may happen that, unfortunately, you have tenants who do not keep the house in good condition. In any case, if you find yourself in any of these situations, we recommend you request insurance owners and in this way, make sure you don’t have worries at home.
  • Responsibilities as a landlord: By continuing to own the property, you have many decisions and responsibilities in your hands. For example, making renovations, managing all the paperwork…
  • Include the rent in the IRPF: At the time of making the income statement, it will be necessary to include in it the house that you have for rent and, therefore, pay the due taxes.
  • Other expenses derived from the rent: Finally, you will have other expenses to take into account: community expenses, fix damages, IBI and other bills.



As you can see, both selling and renting a home have their positive and negative aspects. There is no right option, you must assess your situation and needs and, from there, do what is best for you.

If you find yourself at the moment of putting your apartment up for rent, from AB Apartment Barcelona we take care of the integral management of your apartment. Contact us!

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