Should I Rent Out My Utah Home Instead of Selling When I Move?

Maybe you are moving for a job, or to be closer to family, or you simply need a bigger home. And you are looking at your current house and thinking, why sell it when I could keep it and let someone else pay the mortgage?

That is a fair question, and for some people it is the right move. For others it turns out to be more work and more risk than expected. So let me walk through both sides honestly, with real numbers, so you can decide what fits your life.

Start With Why You Are Considering It

The reasons people give me are usually one of three. They have a low interest rate they do not want to lose. They believe the home will keep growing in value. Or they like the idea of monthly income.

All three can be good reasons. But each one needs a closer look, because the numbers have to work after all the costs, not just the mortgage payment.

What Could You Rent It For

Start with the income. Rentometer, a rent tracking site, showed average house rents in Salt Lake County in mid 2026 of about $1,882 a month for two bedrooms, $2,403 for three bedrooms, and $3,052 for four or more. Your own home will depend on the neighborhood, the condition, and the features, so look at what similar homes near you are actually renting for right now, not what you hope for.

Ask your agent for a rental analysis, which compares your home to recent listings and leases nearby. A realistic number matters more than an optimistic one.

The Costs People Forget

The rent has to cover more than the mortgage. Count the full list.

Your mortgage payment, property taxes, and insurance come first. Landlord insurance costs more than a standard homeowner policy, because it covers a different risk, so ask your insurance agent before you decide. Then add maintenance and repairs, which tend to come at the worst times. A common guideline is to set aside a portion of the rent every month for them, because a furnace or a roof does not wait for a good month.

Add vacancy. Even a great rental sits empty between tenants at times, and every empty month is a month you pay everything yourself. If you hire a property manager, the fee is often around eight to ten percent of the rent, plus fees for finding tenants. If you are moving out of the area, you will probably want one, since fixing a leak from a distance is hard. Some cities in Utah also require a business license or rental registration for landlords, so check with the city where the home is.

When you add it all up, a rental that looks like it brings in $500 a month on paper may break even or lose money. Run the full math before you commit.

Your Loan Might Have Rules

Many mortgages are written for a primary residence, and lenders typically expect you to live in the home for about a year. If you plan to rent it out soon after buying, talk to your lender first. If you already have your mortgage, moving out and renting is common, but your loan may have terms about it. Read your paperwork, or ask your lender to explain.

Your next home also matters. When you buy another home and keep the first one, a lender will count both payments, and may count part of the expected rent as income. This can affect how much you qualify for. It is smart to talk to a lender before you list the first home for rent, not after.

The Tax Side

The tax rules can be a big deal, so talk to a tax professional. Here is the general picture. When you sell your main home, you may be able to exclude up to $250,000 of gain from your taxes, or up to $500,000 if you are married and file jointly, as long as you owned and lived in the home for at least two of the last five years before the sale.

If you move out and rent it, the clock keeps running. You generally have up to three years after you move out to sell and still meet the two year use test. After that, you may lose some or all of the exclusion. Rental income is also taxable, though you can deduct many expenses. You may also be able to deduct depreciation, but it can come back as a tax when you sell. The exact rules are specific, and a mistake can be costly, so please get advice before you decide.

Being a Landlord Is a Job

There is also the human side. A tenant calls you about a leaking faucet at 9 pm. A tenant pays late. A tenant moves out and leaves a mess. Good tenants make a rental feel easy, but there is no guarantee you will find them.

You will want a clear lease, a screening process that is fair and legal, and a plan for deposits and repairs. Utah has laws for landlords and renters, and fair housing rules apply, so it helps to work with a property manager or an attorney who knows them. If you are not sure you want to take on that responsibility, selling may bring more peace of mind.

When Renting Makes Sense

Renting out your home tends to work best when the numbers work with a cushion, when you have a healthy savings account for repairs and empty months, and when you can stay organized or you hire help. It can also make sense when you plan to move back someday, or when your interest rate is far below today's rates and you want to hold on to that advantage. A low payment can be valuable.

It works well when you are not relying on the rental income to pay your own bills. If one empty month would cause trouble, think twice.

When Selling Makes More Sense

Selling often wins when you need the equity for your next home, when the rent barely covers the costs, when the home needs significant repairs, or when you simply do not want the work. The equity in your home is money you can use. After you sell, you could put it into a down payment on your next place, pay off debts, or invest it in other ways. I wrote about how to use your equity to move up in Utah in another post.

Selling also gives you a clean break. You have a known amount of money, no tenants, and no repair calls.

A Way to Decide

Write down four numbers. First, what you would net if you sold today, after the agent's fee, closing costs, and anything you owe. Second, what you would collect in rent each month. Third, your monthly cost of owning it as a rental, including all the costs above. Fourth, what you would do with your sale proceeds if you sold. Then compare the two paths over five years. If the rental path wins by a clear margin, and you are comfortable with the work and risk, it might be a good fit. If it is close, selling is often the simpler choice.

A Word From Me

I own a rental property myself, so I know both sides of this decision. I have also helped many families who were not sure, and some of them kept their home while others sold. I was proud of both choices, because they were based on numbers and their own situation. Many of my clients are Spanish-speaking, and I am glad to walk through the figures in English or Spanish. Bring me your details, and I will help you compare the two paths side by side.

Frequently Asked Questions

Is it better to rent out my house or sell it in Utah?

It depends on the numbers and on your situation. Renting can make sense if the rent covers all your costs with a cushion, and you want to keep the home. Selling often makes sense if you need the equity or want to avoid being a landlord.

Can I rent my house out if I still have a mortgage?

Often yes, but check your loan terms first. Many loans for a primary residence expect you to live in the home for a period of time, and your lender may have rules about renting it out.

Will I owe taxes if I sell after renting the home?

Possibly. You may still be able to exclude gain if you lived in the home for two of the last five years before selling, but depreciation and rental income have their own rules. Talk to a tax professional.

How much does a property manager cost?

Fees vary, but many managers charge a percentage of the monthly rent, often around eight to ten percent, along with fees for finding a tenant. Ask for the full fee schedule.

How can I find out what my home would rent for?

Ask your agent for a rental analysis based on similar homes near you. It is also useful to compare it with what you would net if you sold.

If you are trying to decide, call or text me at 801-636-3609. You can also get an idea of what your current home is worth at danarealtorutah.com/evaluation.