Tori Horowitz for Mansion Global

Recently our fearless team leader, Tori Horowitz, was interviewed by Mansion Global for their piece on why it’s best to wait out the soft luxury market and sell, not lease. Los Angeles is one of the U.S. cities where homes are now taking a bit longer to sell, especially if they fall into the “luxury” category and come with a sizable price tag.

Softening luxury markets throughout major U.S. metros have pushed average sales prices down for top-priced homes from the turbulent highs of a few years ago. The most expensive homes are taking longer to sell, leaving many luxury homeowners—from New York City to Los Angeles to Miami—sitting on their hands while their listing’s “days on market” ticks painfully up. Too many days on the market can make a listing grow stale, but accepting a lukewarm offer could cost a seller equity they’ve built up over years.

Amid the uncertainty, renting out a home to cover mortgage payments or generate income until the market turns around is an understandable impulse. But is it a smart move?

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“My general recommendation is that no one’s ever going to take care of your house the way you’ve taken care of it, and I don’t recommend that clients rent their house in most cases,” said Tori Horowitz, an estate director at Compass’ Hollywood, California, office and the owner of Canyonhaus, a bespoke real estate firm in Los Angeles. “In some cases, if there’s a pressing financial issue and they need a chunk of cash, then of course we just lower the price and get the house sold. It depends on the reasons why people are selling.”

So if selling becomes tricky, is it a wise move to rent instead? Tori weighs in below;

“Most people aren’t interested in the trappings of being a landlord,” Ms. Horowitz said.

In Los Angeles, it’s common for owners of opulent mansions to rent out their homes for parties on a seasonal or year-round basis. These arrangements can reap lucrative rents—$40,000 a month isn’t unheard of, she said—but they also come with potentially substantial costs for post-party cleaning or fixing damage caused by inebriated guests. Many owners just don’t want to risk diminishing the value of their home, she said, especially if they intend to sell in the future.

To read the piece in its entirety and hear more of Tori’s advice, head to Mansion Global here.

Canyonhaus is your go-to resource for all things LA Real Estate. If you or someone you know is thinking of making a move, contact us today.