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Top 5 Reasons for Renting Your Property Rather Than Selling It

Written by Posted On Friday, 20 December 2019 19:51
Annpolis MD Rentals Annpolis MD Rentals

At one time or another, nearly every homeowner has faced the question of renting or selling the home they are currently in.

Whether you are moving to a new home across the street or you need a bigger home, the reasons for leaving the current location are varied as the styles of homes available.

While it is still common for people to sell one home and use the proceeds to buy a new one, some homeowners are beginning to see the advantage of renting the home they are in and building wealth and a steady flow of income in the future.

Of course, the home you intend to rent or lease to others needs to be properly managed, which takes a little time, but when you look at all the options, it’s not surprising that more and more people are turning to rent their current home and allowing a property management company to do the majority of the work for them.

Let’s look at some of the top 5 reasons you should consider when it comes to renting vs selling.

  1. It Can be a Good Tax Break

While the income from your rental is considered personal income and therefore is taxable, your rental home offers multiple tax deductions and expenses that can really cut down on your tax bill.

This is because any expense that was used for the rental property is deductible. This would include repairs, maintenance costs, management fees, insurance premiums, and advertising costs, to name a few. While tax laws change from administration to administration, rental homes have been and continue to be a great way to save money on your taxes.

  1. Direct Income with Property Value Growth

Perhaps one of the biggest benefits of owning rental properties is that provides you with a steady stream of income (assuming the renters don’t bail, or you must evict them). This is especially true if you can rent the home for more than the current mortgage.

You will also increase your net worth from the increase in property value over the years. In some cases, the value of the home may increase substantially in a short period of time. Of course, the value of the home could drop over time, but most people find that the adage of “buy more land because they aren’t making more” to be true.

  1. It’s an Adult’s “Security Blanket”

Let’s be honest, perhaps you are moving in with a new spouse or you were offered a job in a different state, what do you do if things don’t work out? Your rental home can allow you to move back “home”, where you feel comfortable. This allows you to keep all your options open, which is always a good idea.

  1. It is Often Easier to Rent Than to Sell

If you are in a hurry to move, renting makes even more sense. By the time you shop for a realtor, clean or stage the house, have photos taken, wait for open houses, wait even more for a buyer who is approved for a mortgage, and even when you get to that stage, escrow can take 30-90 days.

Rentals are always in demand. You could have your home rented before you even move into your next one! Remember that if you should decide to sell later, you can always go that route. This is often a win-win situation for everyone.

  1. You Don’t Have to Face It Alone

Very few people have the knowledge and time for managing their property, let alone screen new tenants and calling the right company for repairs. This is where a property manager makes perfect sense. With the right property manager, you can watch the money hit your bank account month after month and not have to worry about a thing.

A good property management company will walk you every step of the way, so even if this is your first rental home, you don’t have to wonder if you are doing something wrong. A property management company gives you peace of mind that is priceless.

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