Should I Sell or Rent My Los Angeles Home Before Moving Abroad?
Real Client Question Answered by Jake Heller, CEO & Real Estate Consultant, JDJ Consulting Group
Client Question:
“We’re a family of five planning a long-term move to Europe. Our goal is to give our kids a cultural experience and possibly settle overseas. We own a home in Encino that’s paid off and could rent for around $5,800 a month. We’ve thought about renting it while we’re gone, but we’re nervous about the horror stories with tenants—especially trying to manage everything from abroad.
On the flip side, selling it now feels risky too. What if the market continues to climb and we’re priced out of LA if we ever want to come back? We don’t have to sell, but we also don’t want to miss out on smart financial moves. What would you do if you were in our shoes?”
— Mark & Eliza P., Encino, CA
Jake Heller Responds:
Thanks for reaching out, Mark and Eliza. Your question is incredibly common right now—especially among LA families relocating overseas. There’s no one-size-fits-all answer, but let’s unpack both options with some clarity.
Option 1: Renting It Out
If you choose to rent, here’s what you’re looking at:
PROS:
You’ll maintain your footprint in the LA market.
The LA home brings in $5,800/month, or about $69,600 per year in gross rent.
After taxes, insurance, management fees, and upkeep, your net income is roughly $36,000–$40,000/year.
You preserve the long-term appreciation potential of the property.
CONS:
California has strong tenant protections, which means evictions or problem tenants can be drawn out.
Managing from overseas (even with a property manager) can be stressful.
You may no longer qualify for the $500,000 capital gains exemption if you don’t sell within 3 years of moving out.
Jake’s Take:
“If you believe there’s a strong chance of returning within 5–10 years and you don’t need the equity now, renting might be the smarter option. But only if you’re willing to manage or pay someone to manage it properly. That means tenant screening, proactive maintenance, and choosing someone reliable to handle things locally.”
🏡 Sell or Rent My Los Angeles Home?
Option 2: Selling Before You Go
Selling gives you immediate liquidity and peace of mind.
PROS:
Your home could sell for $1.6–$1.7M in today’s market.
No landlord headaches.
Immediate cash for reinvestment—whether that’s buying a home in Europe or diversifying into stocks, REITs, or income-producing assets.
Avoids potential California tax or legal complications while you’re overseas.
CONS:
If LA real estate keeps climbing, it may be harder to buy back in later.
You’ll lose your hedge against rising U.S. inflation and property values.
Jake’s Take:
“If you’re leaving for more than 5 years and you’re not emotionally attached to the property, selling makes a lot of sense—especially if you can reinvest the proceeds into something that grows. But be strategic. Talk to a tax pro. And reinvest in income-generating or appreciating assets so you don’t just sit on the cash.”
Comparison Snapshot
| Scenario | Rent It | Sell It |
|---|---|---|
| Monthly Rent (Net) | ~$3,000–$3,300 | No |
| Lump Sum from Sale | No | ~$1.6M |
| Landlord Risk | Yes | No |
| Keep LA Market Access | Yes | No |
| Stress Level | Higher | Lower |
| Flexibility | Medium | High |
Our Final Advice on Should I Sell or Rent My Los Angeles Home
“This ultimately depends on your timeline, risk tolerance, and long-term financial goals. We work with a lot of families just like yours, helping them evaluate both sides objectively.”
If you’re unsure, you can also:
Rent it out for a year or two to test life abroad
Use a property manager and revisit the decision after 12–24 months
Sell if you need capital for a home or investments in Europe
Ready for a Game Plan?
At JDJ Consulting Group, we’ve helped dozens of LA families navigate this exact decision. Whether you want a side-by-side rent vs. sell analysis, tenant screening assistance, or tax planning referrals—we’ve got your back.
“Don’t make a fear-based decision. Make a strategic one.” — Jake Heller, JDJ Consulting Group
📞 Let’s Talk: (818) 233-0750
📍 Serving Los Angeles and Neighborhood
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