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.”