Maybe you are leaving Sacramento for a new job or a cheaper town. The house is still here. You have a choice: put it on the market or become a landlord from somewhere else. Both paths have real work attached. Neither is simple.

Renting it out means you are now a California landlord. That comes with duties you cannot skip. You must keep the place safe and livable. You need to fix things fast when they break. There are rules about how much rent you can raise and how you handle security deposits. If you live far away, you cannot just drive over to check on it. Many people hire a property manager. That person handles tenants, repairs, and legal notices for a cut of the rent. It costs money, but it saves headaches.

Taxes are part of the picture too. When you sell, you might pay capital gains tax on any profit. There is a rule that can help you avoid some of that tax if you have lived in the house two of the last five years. That is the two-out-of-five-years rule. If you move out and rent the place for more than three years, you start to lose that benefit. You should ask a tax person or a certified public accountant about your numbers. Every situation is different.

If you rent first and sell later, the tax picture changes. The clock on that two-out-of-five rule keeps ticking. So you have to think about how long you plan to rent the house. A short rental, like a year or two, might still let you use the tax break when you sell. A long rental, like five or six years, probably will not.

There is also the question of what you want. Renting gives you monthly income. Selling gives you a lump sum of cash. Renting means you still own a house in Sacramento. You deal with toilets and roofs from far away. Selling means you are done. No more calls about a broken water heater.

Talk to a lawyer about landlord-tenant laws before you decide. Talk to a tax person about the tax rules. Talk to a housing counselor approved by the federal government if you need a clear picture of your options. Do not rush. The right choice depends on your plan, your budget, and how much hassle you want to handle from a distance.

More notes on this topic are at rent it out or sell when you move.