Should I sell or rent out my property in 2026? The decision with real numbers
Sell vs rent out decision for your property in Valencia: real profitability, taxation, risks and when each option makes sense. Practical case with 2026 figures.
«Sell or rent» is probably the most recurring property decision, and rarely has a universal answer.
5-minute calculation
Grab a calculator:
A. Estimated sale price: ___________ €
B. Expected monthly rent: ___________ €
C. Annual rent (B × 12): ___________ €
D. Annual costs (IBI + community +
insurance + 5% repairs): ___________ €
E. Net annual rent (C - D): ___________ €
F. Gross annual yield (C÷A): ___________ %
G. Net annual yield (E÷A): ___________ %Quick rule:
- G > 5%: renting usually pays off long-term
- G between 3-5%: depends on personal situation
- G < 3%: probably better to sell
Practical case: flat in Sueca centre
Situation: 90 m² Sueca centre, 3 bedrooms, lift, no recent renovation. Inherited 2024, mortgage-free.
Option 1: Sell
- Estimated sale: €140,000
- Costs: -€7,500 (commission, plusvalía, notary)
- Net in hand: ~€132,500
Option 2: Rent
- Market rent: €650/month → €7,800/year
- Annual costs: €1,710
- Net annual: €6,090
- Net yield: 4.35% on €140,000
In favour of renting
- Don’t need capital for other purposes
- Want stable passive income
- Expect property appreciation
- Have management capacity or can pay management
- Properties in high-demand areas
In favour of selling
- Need capital (other investment, debts, retirement)
- Don’t want to manage tenants
- Property needs expensive renovation
- Market at historical highs
- Properties in low-rental-demand areas
Hidden rental costs
Many calculate gross yield only. Real net includes:
| Concept | % annual on property value |
|---|---|
| IBI | 0.2-0.4% |
| Community fees | 0.3-0.7% |
| Home insurance | 0.15-0.2% |
| Repairs and maintenance | 0.8-1.5% |
| Vacancy periods (1 month/year) | 0.4-0.7% |
| Default risk reserve | 0.2-0.5% |
| Professional management | 0.3-0.6% |
| Hidden costs total | 2.4-4.6% |
If gross yield is 7%, realistic net is 2.4-4.6%.
Factor almost no one mentions: your life
Beyond numbers, renting means availability for incidents, contract renewals, emotional wear, bad-tenant risk.
Selling means closing a chapter, giving up future appreciation, taking an investment decision with the cash.
Neither option is objectively better. It’s personal — combining numbers, management capacity, and life project.
What suits you?
A 30-minute call gives you real numbers for your case: estimated sale price, market rent, estimated taxation, my honest opinion based on similar operations.