Do you own property? Here's why you should rent it

Becoming a landlord is an excellent financial decision that goes beyond the income you receive from your property. The tax benefits, market appreciation, and good property management will help you build long-term wealth that can far outweigh a sale. Below, we will discuss some of these benefits.

Rental income protects you against inflation

Inflation is the loss of purchasing power of the dollar caused by a series of overlapping factors, such as fiscal policies, supply, and demand, manufacturing costs, insurance, etc. It represents the increase in prices over time.

When inflation increases, so do the value of the property and, therefore, the amount a landlord can charge for rent. This helps you stay ahead of inflation and maintain a healthy profit.

Considering that we are nearing a 40-year high inflation rate, protecting yourself is more important than ever.

You will receive tax benefits

Operating expenses, such as property maintenance or insurance, and some typical landlord expenses, such as visits to out-of-town properties, are tax-deductible.

Add the fact that you can depreciate to reduce pre-tax income, and you will have a net loss for tax purposes while maintaining a positive net cash flow.

Learn how to estimate your investment here.

A vacant property is a property at risk

If you have bought a property to sell, be aware that it is a long and slow process, and vacant properties can become a real headache. We’re talking about possible squatting, metal theft, or even flood damage while you’re away, to name a few.

Increasing the security of a property can be expensive:

Security cameras.
Reinforced doors and windows.
Frequent inspections.
Higher insurance costs.
Cleaning and pest control.

The best thing you can do is rent the property while a secure purchase offer appears. Hire the services of a property management company to help you maintain the condition of your property and, at the same time, find the right tenants.

Your property will pay itself monthly

Rent money covers the typical expenses of maintaining a property and generates income consistently –it practically pays for itself! You can use this money to invest in other businesses and build equity.

Rental properties can work as emergency housing

Selling a property can be lucrative, but what if something happens and you can no longer stay in your current residence? If you have no other properties, things can spiral out of control really fast and cause you to lose all the money you made from the sale.

Renting your property allows you to generate income and maintain stability in the face of many stressful situations. You just need to make sure you abide by the terms of your lease with your tenants and your state’s leasing laws.

Do you have a property that you don’t know whether to sell or rent? We can help you turn that property into income instead of expenses. Contact us today!

(305) 592-4166 Our agents are ready to answer any questions you may have!