Husband and I have been having this conversation since we decided to go back. We keep going back and forth between selling our house or renting it out. So, I’ve been researching like a crazy woman to see what other people do out there and how they come up with their decision to sell or rent.

Before sharing what I have found in my research, let me just say that I am not a financial advisor, nor am I a real estate agent. What I am sharing here is just my experience, my opinions and the fruit of my research.

Now that we are clear, let’s go!

Selling your home and moving on with your repatriate life

Reasons to consider selling your house

Selling your house may allow you to start your repatriate adventure with a well needed substantial cash fund. 

Let’s take our example. We are planning to move to Abidjan.  Although the cost of living is comparatively lower in Abidjan than Miami. Some things are more expensive. For example, cars are about 20% more expensive in Abidjan, because they are all imported. 

Getting a car loan as a repat may be more complicated if you are not employed or cannot show a steady revenue. And loans are definitely more expensive in Cote d’Ivoire. So most likely, we will have to pay cash for a car if we decide to get one when we get to Abidjan.

Another big expense to consider is housing. If you are planning to rent right away in a city like Abidjan, you should expect to be asked to give 3 to 6 months of rent before being able to move in the apartment or house. 

So with all those big expenses in mind, selling your house before moving may make sense.

Also, if you are not looking forward to managing a property and dealing with all the possible challenges that it entails from abroad, selling may be a good option for you.

Do and Don’ts if you decide to sell

If you decide to sell, there’s a few do’s and don’ts you should pay attention to:

• Do put it on sale early -at least 3 months before your departure date. A sale can take a long time – from the offers that fall through, to the closing process that can take weeks to months. Putting your house to sell at the last minute could force you to accept a lower offer you are not really happy with just because you have to close the deal.
• Do crunch your numbers. Selling a house is not all about profits. Make sure to include the commission that the seller has to pay to both selling and buying real estate agents (~ 6% of sale price). Don’t forget taxes you may have to pay! As well as home improvements, staging, landscaping… The list goes on.
• Don’t over renovate. Yes you want your house to look great and sell fast. That said, you should not over renovate. A good practice would be to ask your real estate agent what type of home improvement would bring the most return on investment, before starting doing anything. 
• Do declutter. You don’t realize how much stuff you accumulate until you have to move – this is one of the reasons why I hate moving! Decluttering takes time. One article I read recommended starting the process months in advance. That makes sense. This way you can take several trips to the Goodwill or Salvation army, you can organize yard sales, or bring what needs to be trashed to the dump. All that without feeling rushed.

Now let’s talk about the second option: renting.

Renting out and managing it from overseas

Pros of renting

Renting has some advantages. The first one that comes to mind is you keep building equity on your house. You keep your house as an investment. 

Since we bought our house, its value has increased by 19 to 47 % depending on the real estate website we look at – although, I believe some of those estimates are a bit inflated… But still, that’s pretty good for an investment. 

Although real estate has its ups and downs, in the long term, it is usually a good investment. Renting your house may allow you to keep that investment while having someone else pay the mortgage for you.

Another advantage of renting your house is having a place to come back if you decide to. In our case, we are planning to go for a year, maybe two. Our move is not supposed to be definitive. Renting our house could make our move back easier, instead of having to start again from scratch. 

Challenges of renting

On the flip side, renting can be challenging. 

If your house is not updated to the standards of renting, you may still have to do some home improvements.

Finding good reliable tenants can also be difficult. Your house may even stay for a few months without tenants. In that case, you have to be able to pay your mortgage (while also paying for housing wherever you live). 

Another downside of renting is that you don’t get to start your repatriate journey with a big lump sum you may get from selling your house. You have to find other ways to finance your move back home. 

Finally, one thing that really makes me pause when I think about renting our house is: how do you manage a rental property, while living in a different country? How do you find a management company you can trust to work with? Which leads me to my next point.

Do you need a management company?

What does a property management company do?  These companies can help with finding new tenants, manage the day to day maintenance of your property, represent you in case of renters complaints and many other rental-related tasks.

Property management companies usually charge between 8%-12% of the monthly rent. Having one while you’re across the globe from your property, trying to establish a new life, could save you a lot of headaches.

That said, if you feel like you can handle everything from abroad, and maybe it’s not your first rodeo as a landlord, self-managing may be for you. Nowadays, there are all kinds of online tools that can help with that – just search virtual rental managers and you’ll find plenty of websites offering that service. You may still need a leasing agent to physically show your property.

Whatever you do, just make sure to do your research.

We still haven’t decided yet which route we are going to take for our house. After reading about both sides, I have a better grasp of what factors we’ll have to take into consideration when we finally make our decision. I hope this is helpful to you too. See you next week!