As a homeowner, when you decide to move you must also decide what to do with your home, whether that means selling or renting it out. Choosing whether to rent or sell your home is a big decision. Many people choose to sell, but there are plenty of good reasons to rent your property instead. Becoming a landlord may not seem worth the trouble, but the benefits could really make it profitable.
Below are some reasons you should rent instead of sell your home in Westchester. If you do choose to rent, remember that you don’t have to go it alone. Professional property firms exist to help you every step of the way so you can make the most out of your property.
1. Easy Way to Generate Cash Flow
One of the most obvious reasons to rent your home is because you already own it–it’s an asset that is just waiting to be capitalized on. Renting your home can create an additional, stable source of income. If you have another job, the best option is to hire a local, expert property manager to take care of any issues and to find you tenants. Owning a rental property requires very little time after you’ve had a chance to sit down and lay out a plan with your property manager.
A property management firm can make marketing your rental property a breeze, so you can sit back and enjoy your new monthly source of cash flow.
2. High Demand for Rentals in Westchester
All over the country, and particularly in counties like Westchester, the demand for rentals is increasing. People simply aren’t buying homes like they used to, and now is the perfect time to get into the rental market.Rental demand is especially high for houses in Westchester. Many homeowners are hesitant to put their house on the market right now due to uncertainty with taxes and interest rates. In fact, when homeowners decide to rent their property they often experience bidding wars with offers substantially above the asking rental price.
The inventory for both rental and for sale homes is remarkably low right now. This is all the more reason to take advantage of the high demand market for your potential product–the home you’re already moving out of.
3. No More Mortgage Payment Stress!
If you are moving out of the home you own, chances are you are moving into another one, which means paying yet another mortgage. Monthly expenses add up quickly, and a mortgage is something that can really add financial strain.
One of the perks of renting your home is that you can now use the rental income you make to help pay your mortgage. This is a huge financial boon and stress reliever for many landlords.
And if all this isn’t incentive enough, it’s also important to note that a rental home’s monthly rent in Westchester is substantially higher than a comparable home’s mortgage payment. This means that the rent you collect alone can pay for your mortgage–and then some.
Maybe you can use that extra revenue to invest in a second, or third rental property!
4. Long Term Tax Deductions
When you begin to rent your property out, you gain access to many long term tax advantages. You can now count your rental property as a business, which comes with a variety of deductible business expenses.
For example, you are now allowed to write off mortgage interest, and a solid amount of your property’s real estate taxes. Even things like maintenance, utilities, and insurance become business expenses, which can also give you a great deduction.
Another great advantage that people who rent their homes have access to is the ability to deduct your property structure’s depreciation. This means that you can deduct the value that your home has lost over a period of 27.5 years.
If your home was worth $600,000 when it was built, then you can divide that number by 27.5 years and deduct that amount ($21,818.18) from your taxes each year.
These are just some of the tax benefits that you can receive as a landlord, and a proven property management firm can point you toward even more.
5. Security Blanket
Lastly, converting your home into a rental property gives you the comfort of financial security. Many of us could use an extra bit of income each month, and renting your home is a simple and lucrative way to achieve just that.
Not only can renting out your home give you the financial safety discussed above, like helping with your mortgage payments and giving you tax deductions, but it also lets you keep your options open.
Because you still own your home, you can try out moving to a new place, or taking a new job, or even transitioning to becoming a landlord full time, while knowing that you can always move back to your previous home.
Not many people can say that they have this security blanket to fall back on when they make a huge change in their life like switching locations or careers.
Plus, the extra income you make from renting your home can be saved for whatever the future may hold.
Maybe this means a vacation fund or an education fund, or an emergency or retirement fund–whatever you envision, you can save for it with the income from renting your home. And if you decide that renting isn’t for you, you can move back in without missing a beat.
With all of the incredible benefits of renting your home rather than selling it, you have little to lose in giving it a shot. Let a trusted property management firm like Sterling Property Solutions guide you through the process and make sure that renting your home works for you.