Even in a great market, selling a home can be challenging. You want to get the right price, you want to attract a lot of buyers, and you want to walk away from the closing feeling like you made a smart financial decision.
These days, knowing how the market will respond can be tricky.
If you’re having any trouble selling your Monroe home, you shouldn’t give up hope. Instead, you might want to consider other options. For example, you could rent it out.
Maybe you never imagined yourself as a landlord. When you work with a smart and experienced team of local Monroe property managers, the hard parts are taken care of for you.
Let’s look at why renting out your home might be a better idea than leaving it on the sales market for an unknown period of time.
Renting Your Monroe Home Delivers Cash Flow and Appreciation
Talk to any financial advisor or Monroe property manager, and you’ll learn there are many financial benefits to renting out your property.
You’ll be able to earn a reliable rental income every month and your asset will continue to appreciate in value, delivering a larger payoff when you finally sell in a year or five years or 10 years.
The rental market tends to be more reliable than the sales market – people are always going to need homes, and renting them is often an easier option for people than buying. So, you’ll have a reliable pool of tenants – more reliable than your pool of buyers.
Rental prices are also pretty high right now, which means your tenants will make a huge contribution towards the mortgage, insurance, taxes, and other expenses associated with owning property. Plenty of good renters are looking for well-maintained homes, and they don’t mind paying top dollar for great living spaces.
Consider Tax Benefits to Renting Out a Property
There may be a capital gains tax on the sale of your home, whereas with rental property, you’re able to take a number of deductions. You can deduct the home’s depreciation, which is pretty generous by IRS standards, and you can also deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. These write-offs help to reduce your overall tax liability, which can be welcome as you’re reporting your rental income.
You Get to Keep Your Asset
Most people have a good reason for selling a home. Maybe you’re moving into another property or maybe you’re relocating out of the area. Whatever your reasons, when you rent out the home you can’t sell, you keep your options for the property open. This may not sound like a benefit if you were hoping to walk away from the responsibility entirely, but who knows where you’ll be in a few years? Everything is changing quickly with pandemics and shifting economic priorities – having a home you can return to later is not a bad reason to hold onto the property.
Becoming a Landlord and Working with Property Managers
Leasing, managing, and maintaining a rental home takes a lot of time and requires a lot of knowledge. There are complex rental laws to work through, tenant relationships to establish, and you’ll need a preferred list of vendors and contractors to take care of minor fixes and major problems. This can seem daunting, especially if your initial plan was to sell your home. Professional property managers in Monroe can handle all of the day-to-day business of your rental property, take care of tenant concerns, and make sure the value of your investment is protected.
Talk to us about the potential for renting out your home. We’d love to help. Contact our team at Real Estate Gladiators.