Should You Rent Out Your Old Round Rock Home or Sell It? A Clear Way to Decide

If you already own a home in Round Rock and you are getting ready to buy your next one, someone has probably told you to keep the old house and rent it out. That advice sounds smart, and sometimes it is. I'm Ai Tran, and when people ask me this question, I don't answer yes or no right away. I ask them to look at three things with me: the real rent the house can earn, what owning it from a distance will cost in money and time, and how keeping it changes the loan on the next home.

A house can be a good long-term asset and still be the wrong choice for you this year. This post walks through both sides so that the decision is yours and not a guess.

Many owners guess high at first. That is normal, because we remember what our home means to us, not what a stranger will pay to live in it.

For a rough reference point, Apartments.com reported that as of February 2025 the average rent for a house in Round Rock was $2,327 a month, for an average size of about 1,970 square feet. The same Apartments.com report said apartment rent in Round Rock had dropped 5.6% over the prior year. Those are citywide averages from one month, so your street, your floor plan and the condition of your home will move the number up or down.

The better test is simple. Look at homes for rent right now that match yours in size, age and location, and notice how long they have been sitting. The rent a house actually gets is worth more than an asking rent on a listing that nobody has taken.

Then put that rent next to everything the house will cost you each month:

• Your mortgage payment, principal and interest
• Property taxes, which can go up once the house is no longer your homestead
• Insurance, since a rental usually needs a different policy than the one you carry today
• HOA dues, if your neighborhood has them
• Repairs and replacements, such as the air conditioner, water heater and roof
• Months when the house sits empty between tenants
• A property manager's fee, if you hire one

If the rent only just covers that list in a good month, the house is not paying you yet. It is asking you to bet on future value, and that bet can go either way.

I am not a tax advisor, and I will always send you to a CPA for your own situation. Still, two rules come up so often that you should know to ask about them.

The home sale exclusion. IRS Publication 523 explains that, to qualify for the maximum exclusion of gain when you sell your main home, you generally must have owned it and used it as your main home for at least 2 of the 5 years before the sale. If you move out and rent the house for several years, you can fall outside that window. Publication 523 also covers how rental use affects the calculation, and that is exactly the part a CPA should run for you.

The homestead exemption. Texas Comptroller guidance says the general residence homestead exemption applies when the owner has an ownership interest in the property and uses it as their principal residence. A house you rent to someone else generally does not meet that test, and you can claim only one residence homestead. Once you move, the exemption goes with your new home, so the property tax bill on the old house can rise. Ask your county appraisal district how that change will be handled for your address.

Owning a rental means a tenant is counting on you. Texas Property Code Section 92.052 requires a landlord to make a diligent effort to repair a condition that materially affects the physical health or safety of an ordinary tenant, once the tenant gives notice and is current on rent. Texas Tenant Advisor, a tenant resource, notes that the repair statutes treat seven days as a reasonable time to make a repair.

In a Central Texas summer, an air conditioner that stops working is the kind of call you should plan for. Ask yourself honestly who will take that call, who will meet the repair company, and how you will pay for it if it arrives in the same month as another bill.

Check a few more things before you decide:

• Your HOA documents. Some neighborhoods have deed restrictions or HOA rules about leasing, such as minimum lease lengths. Read them before you count on rent.
• Fair housing law. Fair housing law applies to you as a landlord, so you need written screening standards that you apply the same way to every applicant.
• Distance. If your next home is in Georgetown or Pflugerville, you may be close enough to handle things yourself. If you are moving farther away, a property manager may be the realistic choice, and that fee belongs in your math.

Many people skip this part, and it is the part that can stop a purchase. When you apply for the loan on your next home, the lender will look at the payment on the house you are keeping. Whether the expected rent can be counted against that payment, and how much of it counts, depends on the loan program and the lender's rules.

If you are self-employed or paid on a 1099, this matters even more, because your income already gets a close review. I would rather you hear a clear answer before you fall in love with a house than hear a surprise later. That is why I start with your real number first, as I explain on my process page.

No single rule works for everyone, but some patterns show up again and again.

Renting it out may fit when:

• The real rent covers the full monthly cost with room left over for repairs.
• You have savings set aside for repairs and empty months.
• You can qualify for the next home while still carrying the old payment.
• You are comfortable being a landlord, or you are willing to pay someone to do it for you.
• You plan to hold the house for many years.

Selling may fit when:

• You need the money from the old house to buy the next one.
• The rent would barely cover the costs.
• The house needs work before a tenant could move in.
• You are close to the edge of the two-year window in IRS Publication 523 and want a CPA to look at it.
• You want one home, one payment and fewer phone calls.

If selling looks like the better path, my Round Rock area page covers the city in more detail, and you can see what is available for your next move on my listings page.

You don't need to decide this alone, and you don't need to decide it fast. Bring me your current payment, your property tax bill and a rough idea of what the house needs. I'll help you compare the real rent to the real cost, and I'll point you to the right tax professional for the questions that belong to them.

If your parents are part of the decision, I'm happy to go through it with them in Vietnamese, at a pace that leaves room for every question. Contact me here, and I'll set up a time that works for you.