You’ve found the perfect new home, and you’re ready to make the move, but do you sell your current home or try to rent it out? Selling now could give you some handy cash up-front, but renting could provide a long-term income source and a nest egg for retirement or hard times.

Your situation may not allow you to consider renting. For example, if you need a large amount of money in a a short period of time, a second home may be a luxury you can’t afford. But if you think you might be able to squeak by without selling and are wondering if you should, take our four-question quiz.

1. Can you handle your purchase without it?

For most buyers, selling your old home isn’t just an option–it’s a necessity. Most of us don’t have enough savings to pay a downpayment while maintaining our old property and paying for moving expenses. If you’ve run the numbers and they’re on the borderline, you should strongly consider selling your existing home before you purchase a new one. Too much leverage can cause stresses that could lead to losing both homes. On the other hand, you may not be able to sell your home without taking a huge loss. Buying a new home in this situation is also dangerous, unless you have a very strong rental market (see question 4).

However, if you’re in the enviable position of being able to scrape together a down payment and your first few months of rent without selling your home, you may be an excellent candidate for renting your old home.

2. Do you want to be a landlord?

If you’re moving more than driving distance from your old home, the answer is simple. If you’re staying in the area, you’ll have to perform some soul-searching. Being an active landlord can certainly save you some money, but it also means getting calls in the middle of the night, risking strained relations with your tenants, and possibly having to hire professionals to fix things you might break.

If you hired third parties when you lived in the home, don’t expect to become more of a handyman after you’ve moved out. Management companies will take a percentage of your rental income as a fee, but they usually handle problems more efficiently and may be able to rent your property for a higher price than you could on your own.

3. Can you cover the old mortgage?

Now that you know whether you’ll be fixing broken faucets yourself, add any management costs to maintenance, mortgage, taxes, insurance, and other related expenses. If possible, throw in an extra 10 percent to cover items you’ve forgotten. Now price out average rental rates for comparable homes in your area. Can your rental income cover that number? If not, is the surplus going to break the bank? Don’t forget–the average rental price of a home will grow over time, while the mortgage payment will not, so if you can cover expenses now, you will probably turn a profit in the future.

4. Is your rental market strong?

Your home may be worth the average rental price, but it could take some time to find tenants who will bite. Strong rental markets will see vacancies snatched up almost immediately, while homes in very weak markets might go vacant for 6 months or more. Generally, be sure to assume a month or two of vacancy before your tenants move in, and expect the same every time your tenants leave. If you’re in a particularly weak market, you may find that reducing your asking price actually saves you money in the long term.

If you answered “yes” to questions one, three, and four, you should put strong consideration into renting your old home. This is true regardless of your equity in the property. If you have a large loan balance, a self-sustaining rental allows you to build an equity position at no net cost, while allowing you to wait out appreciation as the market recovers. If your loan is nearly paid off, your rental provides free income while you decide whether and when to sell. With today’s deflated home values, renting may well provide a better return on investment than flipping the home and investing outside of real estate.