If you’ve been looking for a way to diversify your investments or generate a little extra cash flow, renting out your home can be the perfect solution. You already own your home. If you’re not currently living in it, why wouldn’t you allow it to make money for you? Although you can stand to make a good amount of profit from renting out your home, it can still be difficult to actually take the first step in the rental process. Many people are hesitant because they worry that renting out their property will be too complicated or too time-consuming.
However, what those who are on the fence don’t realize is that this process is a lot easier than it seems, and the benefits far outweigh any concerns. If you have been hesitant to make this decision and become a landlord, here are five benefits of renting out your home that you should consider:
1. Immediate Passive Income
The number one reason why you should consider renting out your home is to make a passive income.
A growing number of people, particularly millennials, prefer renting homes to buying them for the flexibility and cost security these properties offer. As a result, rental rates are rising in many cities across the country.
When you rent out your home, you can sit back and collect extra money from rent each month without having to actively work to earn it. While there are certainly some expenses you will want to budget for as an investor, it will be well worth it when you start receiving monthly rent payments from tenants.
Unlike most investments, where you have to spend money to make money, you already own your home, and you have already spent money making necessary improvements to increase its value. You won’t have to wait months or years to start seeing a return on your investment, you can start renting it out and reaping the benefits right away. This can be especially helpful if you live far away from your rental property. Instead of leaving your home vacant, you can turn it into a revenue stream and pocket some extra cash.
2. Selling Flexibility
Renting out your home is a good way to make money while you are waiting for the right time to sell your home.
Instead of letting the mortgage put a dent in your wallet while trying to sell the home or selling the home for less than it’s worth in a buyer’s market, you can receive rental payments as you wait for a seller’s market.
3. Tax Incentives
When you rent out your home in Virginia, you can be eligible for a few tax breaks. You can deduct your property taxes, write off operating expenses like homeowners association fees and maintenance, and you can also deduct any potential losses associated with renting from your income.
While it is best to work with a rental property management company and a CPA to make sure you are keeping track of your expenses and completing your taxes properly, the tax breaks you can receive are a nice added benefit of renting out your home.
4. Home Security
If you’re headed overseas for military service, moving out of the city, or otherwise going to be away from your property for an extended period of time, renting out your home can provide security in two ways.
First, your home will not be vacant, which will decrease the risk of break-ins, vandalism, and property damage. Having tenants live in your home adds a layer of security that you will want if you can’t check in on your property regularly.
Also, renting out your home means that you still have a property to return to if you need to move back to the area. You won’t be tough out of luck when you return from your extended travels if you rent your home instead of selling it.
5. It's Simple!
While renting out your home might appear to be a complicated process, when you work with a great rental property management company like RentSimple, it can be quite easy.
RentSimple handles all the difficult parts of the rental process like finding tenants, providing property maintenance, and collecting rent in a timely manner. This way all you have to worry about is collecting your passive income.
See how RentSimple can help you start selling your rental property today when you contact us!