Should You Sell Your Home or Turn It Into a Rental Property in Calgary and Lethbridge?

If you’re thinking about moving, one of the biggest questions is this: Should I sell my house, or should I keep it and turn it to a rental?

It’s a question a lot of homeowners in Calgary and Lethbridge ask themselves. The market has been strong for a while, rents have been rising, and it can be tempting to try your hand as a landlord. But it’s not always a simple decision.

Here’s an honest, simple look at both sides- and a few things to consider before making your choice. 

The Case for Selling Your Home

Get a Lump Sum of Cash

Selling your house gives you access to a chunk of cash right now. In a strong market like Calgary or Lethbridge, that can be tempting. You can use the money to buy a new place, pay down debts or invest elsewhere. 

Simplicity and Peace of Mind

Being a landlord isn’t for everyone. If you sell, you walk away from the headaches- no late-night calls about broken taps, no dealing with vacancies or late payments, and no worrying about long-term maintenance. 

A Strong Market Might Not Last Forever

Right now, the market in both Calgary and Lethbridge is solid. But that doesn’t mean it will stay that way. If your area has seen a big price run-up recently, this might be a good time to cash out while prices are strong. 

The Case for Keeping It as a Rental

Build Long‑Term Wealth

If your mortgage payments are manageable, renting can be an excellent way to build long-term equity. Someone else is effectively paying down your mortgage every month, and your property may continue to rise in value. 

Regular Income

A well-kept rental in Calgary or Lethbridge can provide a solid stream of income. Even after covering the mortgage, taxes and maintenance, many owners still have a few hundred dollars a month coming in. 

Property as a Retirement Plan

Some owners hold onto a rental for 10-20 years. By the time they’re done working, the mortgage is largely paid off, and the house becomes a source of retirement income. 

Things to Consider Before Making a Decision

Will You Be Comfortable as a Landlord?

Being a landlord isn’t for everyone. It takes patience, some handyman knowledge and an understanding of Alberta’s tenancy rules. If dealing with tenants doesn’t appeal to you, selling may be the better route. 

Will You Qualify for a New Mortgage?

If you’re keeping your current house as a rental, you will still have a mortgage. Will that affect your ability to qualify for a new one? Talk to one of the best mortgage brokers Calgary has to offer. A broker can help you understand how to balance both properties and guide you through financing your new home. 

What will the property's cash flow be?

Check your numbers closely. Will the rent cover your mortgage, taxes, insurance and maintenance? Will you have enough left over for unexpected expenses? This is where working with an experienced broker can save you from making a costly mistake. 

What Do Most People Do?

It depends on priorities. In Calgary and Lethbridge, some owners sell to move closer to family or simplify their lives. Others hold onto their old home, seeing it as a long-term investment.

If you’re thinking about converting your home into a rental in Lethbridge, this is a good time to also review your mortgage. A Lethbridge mortgage refinance can help adjust payments, free up cash for renovations, or make the numbers work better for your new role as a landlord. 

Final Thoughts

There’s no one-size-fits-all answer when it comes to selling your home versus turning it into a rental. The best decision depends on your financial situation, your comfort level with being a landlord, and your long-term goals. 

If you want a clean slate and cash in hand, selling might be the right call. But if you’re comfortable with the responsibilities and like the idea of building equity over time, renting can be a rewarding option. 

Whatever you decide, it’s worth doing your homework first. Talk to the best mortgage brokers Calgary has available, or review options for a Lethbridge mortgage refinance. These conversations can give you a clearer picture of your financing options- and help you make a decision that’s best for you and your future.