The tides are shifting here in San Diego—and dare we say… a buyer’s market may be emerging. Market trends are slowing compared to the frenzy we’ve seen since 2020, and many homeowners are noticing the difference. In fact, we’ve seen a rise in calls from property owners who listed their homes for sale but aren’t seeing the same activity they expected.
At the same time, life doesn’t always go according to plan. Homeowners who purchased with the intention of staying long-term may suddenly face a job transfer, family changes, or other circumstances requiring them to move.
In both cases, the big question becomes: should you rent your home or sell it?
The answer depends on current market conditions, your financial situation, and your long-term goals. At Francis Taylor Properties, we guide Escondido and North County San Diego homeowners through this decision every day. Here’s what to consider:
1. Will Your Property Make a Good Rental?
Not every home is an ideal rental property. High-end, custom, or uniquely designed homes may be harder to rent or may not bring in a strong financial return. Additionally, "special" properties with unique upgrades don't always translate to a higher price point when it comes to a rental property. While customizations may be great for a home that YOU live in or add to resale value, set expectations that these may not factor in to a higher rental amount. If your property isn’t well-suited for the rental market, selling may be the smarter option.
2. Can You Emotionally Detach?
Turning your home into a rental requires a shift in mindset. Tenants won’t have the same emotional connection you do, and they may repaint walls, redecorate, or wear down features you love. Successful landlords view their property as a business investment rather than a personal space.
3. Do You Have Financial Reserves?
Owning a rental property comes with ongoing costs: repairs, property taxes, insurance, and occasional vacancies. Even if you have a low interest rate, it’s important to maintain reserves. We recommend setting aside at least three months’ rent as a cushion to cover unexpected expenses.
4. Do You Plan to Sell in the Next 12 Months?
If you know you’ll want to sell within a year, renting first is rarely a good idea. Tenants can add wear and tear, meaning you may need to repaint, replace carpet, or make repairs again before listing. Plus, housing prices rarely increase significantly in just 12 months. In these cases, it’s usually best to sell right away and avoid the risks.
Long-Term Benefits of Renting
That said, renting can be an excellent long-term wealth-building strategy. Many homeowners who first rented “temporarily” now enjoy fully paid-off rental properties that generate steady, passive income. If your home is a good fit for the rental market and you’re financially prepared, holding onto it may strengthen your long-term financial future.
Make the Right Choice with Francis Taylor Properties
At Francis Taylor Properties, we provide expert guidance in both property management and real estate sales. Whether you’re leaning toward renting or selling, our team can help you evaluate your options, run the numbers, and choose the path that aligns with your financial goals.
👉 Want help deciding? Contact us for a free rental analysis of perspective rents & market analysis of your property
If integrity, transparency, and full-service management are important to you, we may be the right fit for your property and your future tenants.
Contact Francis Taylor Properties today to discuss whether renting or selling is the best choice for your home in Escondido or North County San Diego.
