Should You Sell or Rent Your Las Vegas House?
A framework instead of an opinion, plus the tax clock that quietly runs out on people who rent out a home they used to live in.
Three Questions That Usually Settle It
Answer these before you look at a single number.
Do you want to be a landlord?
Not do you want the income. Do you want the tenant calls, the turnovers, the vacancy, and the maintenance. Some people genuinely do not, and that is a complete answer.
Do you need the equity?
If the proceeds are funding your next down payment or clearing debt, selling usually wins regardless of what the rent would be.
Will you be nearby?
Managing a rental from another state without a manager is where most accidental landlords get hurt. Be honest about the distance.
Is this a house worth keeping?
An older home with deferred maintenance is a different rental than a newer one. The repairs come out of the same pocket either way.
Run the Real Numbers
Rent minus mortgage is not cash flow.
The mistake almost every first time landlord makes is comparing market rent to their mortgage payment and calling the difference profit. Here is the actual list of what comes out before you keep anything.
The line people forget is the air conditioner. In this climate the HVAC works harder and fails sooner, and replacing one is a large single expense. If you are keeping the house as a rental, that reserve is not optional.
The Tax Clock Nobody Mentions
This is the part that costs people real money.
To use the federal primary residence capital gains exclusion, you generally must have owned and lived in the home as your main residence for at least two of the five years before you sell. That is up to $250,000 of gain excluded for a single filer and $500,000 married filing jointly.
Rent the house out long enough and you fall outside that window. The exclusion goes away, and any depreciation you claimed during the rental period gets recaptured and taxed separately at a federal rate up to 25 percent.
So the honest framing is this: renting it for a year or two is very different from renting it for six. If your home has substantial appreciation, know exactly when your window closes before you sign a lease. Full detail on my Nevada capital gains page, and talk to a CPA. I am a Realtor, not a tax professional.
If You Decide to Rent It Out
Six things to handle before a tenant moves in.
Check your CC&Rs
Many Las Vegas associations set minimum lease terms, cap rentals, or require tenant registration. Read them first.
Switch your insurance
A homeowners policy on an occupied rental can be a problem at claim time. You need a landlord policy.
Tell your lender if required
Some loan programs have occupancy requirements. Check yours before you convert the property.
Use a Nevada compliant lease
Deposit handling, notices, and entry rules are all governed by state law. Get the document right.
Apply screening consistently
Fair Housing applies to you. Written criteria, applied identically to every applicant, no exceptions.
Decide on management
Especially if you are leaving the state. My property management guide covers how to vet one.
If you were thinking nightly rental instead, stop and read short term rentals in Las Vegas first. The rules vary by jurisdiction and most associations prohibit it outright.
Renting it out is a business decision, not a way to avoid making a decision. If you would not buy this house as an investment today, that tells you something.
Want Both Numbers?
I will give you what the home would sell for and what it would realistically rent for, so you are comparing two real figures instead of guessing.
No spam. Unsubscribe anytime.
Common Questions
Tap any one to open it.
Is it better to sell or rent my house in Las Vegas?
It depends on whether you want to run a small business, whether you need the equity, and how long you would hold it. Selling is simpler, converts equity to cash, and protects your capital gains exclusion. Renting builds long term wealth if the numbers genuinely work after vacancy, maintenance, and management. Run both to a real annual figure before deciding.
How long can I rent my house before losing the tax exclusion?
The federal exclusion generally requires you to have lived in the home as your main residence for at least two of the five years before the sale. That means there is a window, and renting for an extended period will eventually close it. Depreciation recapture also applies to the rental period regardless. Get the timing from a CPA before you commit to a lease.
What does it really cost to be a landlord?
Beyond the mortgage, taxes, insurance, and HOA, budget for vacancy, ongoing maintenance, capital replacements like the air conditioner and roof, turnover costs between tenants, and management if you use it. Real cash flow is what remains after all of that, not the gap between rent and your mortgage payment.
Can my HOA stop me from renting my house?
It can impose meaningful limits. Minimum lease terms are widespread in this valley, some associations cap the total number of rentals in the community, and most require you to register your tenant. Read your CC&Rs before you make the decision, because the answer can settle it for you.
Do I need different insurance to rent out my home?
Yes. A standard homeowners policy assumes owner occupancy, and continuing to carry it on a rented property can create serious problems at claim time. You need a landlord or dwelling policy. Call your carrier before the tenant moves in, not after something happens.
What if I want to move back in later?
That is a legitimate reason to rent rather than sell, and it changes the math. Just be clear with yourself about the timeline, because a vague someday tends to become years. And know that time spent as a rental affects your eventual tax picture even if you do move back in.
Not Sure Which Way to Go?
Send me the address. I will give you the sale number and the rent number, and you can make the call with real figures in front of you.
Keep Reading
The pages owners open next.
Lori Ballen
I’ve lived in Las Vegas since I was five years old and I will tell you when keeping it is the better call. Email me at lori@loriballen.com.
702-604-7739