In today's uncertain real-estate market, more homeowners are reluctantly either becoming renters or rentees. Some
are trying to keep their homes and opt to rent out their property,
especially since rental rates are typically higher than mortgages these
days. Some are relocating for more promising employment
opportunities and aren’t ready to let go of their home, while others may
have inherited additional real estate with no idea what to do with it. There’s a variety of reasons why homeowners are choosing to rent out their homes, and thankfully a variety of benefits to do so. Here are three great reasons to rent out your home!
Riding out the market has become one of the top reasons homeowners are renting out their properties. Home
prices may be down 50% or more throughout most parts of the country,
but trying to sell in this market has proved to be tougher than ever! Homeowners are finding it especially hard to sell their homes because they’re competing with Arizona foreclosure rates in addition to a flood of other available properties. Transitioning your home into an Arizona rental property even short term can buy you time until your house can sell or until the market picks up. Housing a renter also helps prevent having a vacant home, which can become the target of break-ins and vagrants.
If you’re one of the masses suffering in the shaky real estate market and an even shakier job market, there’s still hope. If you play your cards right, you may be able to turn a profit renting out your property. For many, rent income can cover mortgage, taxes, and even insurance payments. However, knowing how much rent to charge is tricky, and most find it in their best interest to hire an Arizona property manager to more accurately determine what rent to charge as well as locate tenants, collect rent payments, and maintain your property.
Renting out your property doesn’t always promise a juicy new income option, however it can bring in some great tax perks. Even
though rental income is taxed as regular income, numerous deductions on
expenses and depreciation can whittle down the tax bill. Homeowners can deduct out-of-pocket expenses related to owning and managing your Arizona rental property. This includes property taxes, association fees, property insurance, repair costs, maintenance expenses, and fees paid to Arizona rental property management companies.
Renting out your home isn’t for everyone, but for many it can be a
viable solution to holding on to your property in a sloppy housing
market, or having a place to come back to after a job relocation. Though
there are risks that should be carefully considered before renting out
your home (will rental income help cover rental expenses?), if you plan
smartly, renting out your home can help you survive and even thrive in
our current housing market.