Should I Rent for a While After I Sell?

Renting for a while after you sell makes sense if you want time to choose your next home, or if your money is tied up in the house you are selling. It costs you a second move, rent, and often storage, so it works best when you plan it before you list.

I am Delia Bayna, a REALTOR with eXp Realty in Salt Lake City, Utah, and a Seniors Real Estate Specialist (SRES). Renting first is one of the four ways to buy and sell, and here is how to tell whether it fits you.

The biggest thing it gives you is time. You can sell without having to love the next place yet. For many people leaving a home they raised a family in, that space matters. Letting go of the old house is hard enough without choosing the new one in the same month.

It also puts your money in the bank. When your equity is tied up in the house, selling first turns it into cash you can see. You shop for your next home as a buyer whose money is ready, with no sale of your own hanging on the offer. I explain how equity works in what your equity means if you can't spend it.

And it takes away the gap people fear most, the one where the house is sold and there is nowhere to go. With a lease signed, you know where you will sleep the night after closing.

Two moves. That is the main cost, and it is real. Packing a house you have lived in for decades is hard work, and doing it twice is harder. Plan the help for both moves before you start.

Rent comes next, plus storage for whatever will not fit in the rental. Add both to your monthly budget for as long as you think you will rent, and then add a few more months in case the search takes longer.

The market can also move while you rent, up or down, and nobody can promise you which way. Renting buys you time. It does not buy you a price.

Last, there is the lease itself. Read how long it runs, what it costs to leave early, and what happens if you need a few more months.

A rental can be a trial run for your next home. If you think you want a condo, rent one. If you think you want to live closer to family in Davis County or Utah County, rent there first and see how the days feel.

Renting through a Salt Lake City winter is an especially good test. You find out whether icy steps up to a second-floor unit bother you, how far the walk from the parking lot feels in the snow, and how the drive to see the grandkids goes on a stormy Sunday. Those are hard things to learn on a sunny tour in October.

Ask about the things that matter to you before you sign. If you have a pup, read the pet rules and the deposit. Ask who clears the snow and where you park.

Sort before you list. Bring to the rental only what you will use in the next few months. Everything else that is coming with you goes straight to storage, packed and marked by the room it will go to in your next home. That makes the second move smaller and calmer. For help pacing it, read how to move without wearing yourself out.

Keep your important papers, your medications, and anything you cannot replace with you, not in storage.

If the gap between selling and buying is only a few days or weeks, a full lease may be more than you need. A rent-back, where you stay in your sold home for a set time and pay the new owner, can cover a short gap with one move. I cover how that works in how long you have to move out after closing.

Decide before you list, not after you have an offer. Your plan changes what you ask for in the sale, from the closing date to the possession date.

If your money is in the house and the thought of rushing into the next place keeps you up at night, I would look hard at renting first. If you cannot face moving twice, I would look at a rent-back or a plan to buy and sell close together. If you plan to buy with a loan later, talk with a lender early about what they will want to see while you rent.

I taught for eighteen years, and I learned that people make better choices when nobody is rushing them. Renting for a while can buy you that time. My downsizing page shows how I plan the sale and the next home as one move.

Is it smart to sell my house and rent for a while?

It can be, when you want time to choose your next home or your money is tied up in the house. The cost is a second move, rent, and often storage.

How long should I plan to rent after selling?

Long enough to choose well, with a little cushion. Pick a lease that matches how long you think you need, and ask what it costs to leave early or stay longer.

What do I do with my furniture while I rent?

Bring what fits and what you will use, and store the rest. Sort first, so you are not paying to store things you do not want. My post on furniture your kids don't want can help.

What is the difference between renting and a rent-back?

Renting means moving into a different home under a lease. A rent-back means staying in the home you just sold for a short, set time and paying the new owner, under a separate agreement.

This article is general information and is not legal, tax, or financial advice. Leases and rent-back agreements vary, and loan questions belong with a lender.