If you own a home in New Jersey and are thinking about making a change, you’re probably facing one of the most common homeowner dilemmas: Should I sell, or should I rent it out?
The right choice isn’t one-size-fits-all. It depends on your financial goals, the property itself, the local market, and your tolerance for being a landlord. Here’s a breakdown to help you decide.
1. What’s Your End Goal?
Before anything else, get clear on what you want. Are you looking for a clean break and cash in hand? Or do you want to build long-term wealth through passive income? Your strategy should match your lifestyle and risk tolerance.
2. Financial Snapshot: What Makes More Sense?
Renting May Work If:
- You have little or no mortgage, and the rental income would generate cash flow
- You’re in a high-demand rental area (like Bergen County towns near NYC transit)
- You plan to return to the home in a few years
Selling May Be Better If:
- The home needs repairs or upgrades you don’t want to handle
- You’re moving out of state or permanently relocating
- You want to cash out your equity and use it to upgrade, invest, or pay off debt
3. Can You Be a Landlord in New Jersey?
Being a landlord here isn’t for everyone. NJ has very tenant-friendly laws, which can make it difficult for landlords to manage problem tenants or pursue eviction quickly. Eviction cases can drag on for months, and there are numerous legal protections in place for renters.
You’ll also need:
- Landlord insurance (more expensive than homeowners)
- Time or a property manager
- A budget for maintenance, vacancies, and repairs
In addition, most towns in New Jersey require landlords to obtain a Certificate of Occupancy (CO) before renting out a property. This typically involves an inspection by the town’s building or housing department to ensure the home meets safety and habitability standards. A fire inspection is usually included, requiring working smoke and carbon monoxide detectors, a mounted fire extinguisher, and proper egress from bedrooms. The cost of a CO can range anywhere from $75 to $200 depending on the municipality.
If you’re leaning toward renting but want a hands-off experience, NJ House Partners offers full-service property management for small investors at competitive rates. We handle tenant placement, rent collection, maintenance coordination, and more—so you can enjoy the benefits of rental income without the headaches.
4. Capital Gains & Tax Considerations
If you’ve lived in the home for 2 of the past 5 years, you may qualify to exclude up to $250,000 (or $500,000 for married couples) in capital gains from the sale. Renting it out for too long could impact this exemption.
Speak with a tax advisor before deciding. Timing the sale right can protect your profits.
5. What’s the Market Telling You?
In many NJ towns, inventory is low and buyer demand is still strong. If you’ve got equity, this could be a great time to list and sell for top dollar.
On the other hand, if home prices seem to be plateauing and rents are high, holding the property could generate stable monthly income.
6. Rents Are Skyrocketing in Bergen County
Another factor to consider is the rental market itself. Median rents in Bergen County have climbed significantly in recent years. As of mid-2025, the median rent for a single-family home in Bergen County is hovering around $3,800 per month, with many larger or updated properties pushing well past the $4,500 mark.
If your home is in good condition and located in a desirable area, it could fetch a premium rent. However, high rents also come with high expectations from tenants—and responsibilities for landlords.
Bottom Line: Run the Numbers, Then Run the Strategy
No two properties (or situations) are alike. I offer free home equity assessments and seller strategy sessions to walk you through the options, whether you’re leaning toward listing, renting, or just testing the waters.
Whether you sell or rent, NJ House Partners is here to help you make the most of your investment.
📞 Kevin Hill | 201-214-1349
🌐 www.njhousepartners.com
