There are many benefits you can enjoy when you decide to rent out your property to tenants. In addition to the obvious financial advantages, there are other benefits that might make renting out your property an even more desirable option. Here are five benefits to renting out your property.
1. Passive Income Source
When you rent out your property, you will be able to receive passive income every time your tenants pay rent. This means that you will not have to do any extra work to maintain this source of income as long as there are no building maintenance issues or other tenant-related problems that need to be addressed. If you have a regular job or run another business in addition to being a landlord, the income you collect from rent will possibly allow you to reduce your work hours.
2. Tax Breaks
There are certain deductions you can claim on your taxes as a landlord that could save you a lot of money. If you have a mortgage on the property, you can claim the interest on your payments as a tax deduction. The costs of any repairs that need to be made may also reduce the amount you owe on your taxes. You can even claim deductions for property insurance and any travel-related expenses that may be required to help you manage your property.
3. Better Resale Value
If you eventually hope to sell your property but want to wait until the market conditions are right, you can rent it out so that you can still make money in the meantime. Your property value may actually increase in the future, and having tenants move in will allow you to sell at your convenience. If you do decide to list the home for sale with Donna Lasater Real Estate & Property Management or another real estate agency in the area, you will have the power to negotiate a better deal if you are still generating an income from your tenants.
4. Emergency Home for Yourself
You may find yourself in a situation where you are unable to stay in the home you are living in because of financial reasons or certain hazards that could jeopardize your health and safety. When you have another property that you rent out to tenants, you always have the option of moving into this home yourself as a backup plan. You can either agree to share the home with the tenants or provide them with sufficient notice to vacate.
5. Greater Security
If you own a home that you are not currently living in and are worried about it being vacant, having tenants move in can provide you with a greater sense of security. This can help prevent vandalism and may deter squatters from moving in and causing havoc.
Making the decision to rent out your property can increase your wealth and enhance your life in many other ways. As you landlord, you will be able to enjoy a greater sense of empowerment and take better control over your finances.
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. The information in this article is credited to Donna Lasater Real Estate & Property Management.