Are you thinking about buying a new home? Wondering if you should start renting your current house out?
If you’re buying a new home, you may think that you’ll simply need to sell the old one. However, renting it out instead can be a great option and has some distinct advantages.
Here are 5 reasons why you should start renting your house out.
1. You’ll Sell At a Loss
One of the key reasons to rent your hcome out is because the housing market is down. If you’ll end up selling your house for a loss, it may be worth holding onto it for a while longer instead. During this time, you can rent out your home to others and earn an extra bit of income.
This extra income can be pretty useful and can help ensure that you get the most money possible out of your current home when moving onto your next one.
2. You Can Build Passive Income
While selling a house for a good sum is an option, it can also be useful to hang on to a property for a while to get some consistent cash flow and passive income from it.
Becoming a landlord is somewhat passive. However, you can also hire a property manager if you don’t want to manage your home yourself. This means that you’ll have a good bit of extra cash coming in each month with minimal effort.
3. You Can Make a Profit
If you want to make profits in the long-term, then renting out your house can be a great idea. If done right, you may be able to rent your home out for more than the price of the mortgage and expenses. As a result, you can make a good profit month after month and it will add up over time.
Along with this, the home will appreciate in value over time as well. The profits of selling your home and using it as a rental combined can be pretty significant.
4. There Will Be Tax Benefits
When you rent your home to tenants instead of selling it, you can also experience the tax benefits of being a landlord. For example, you’ll be able to write off mortgage interest and real estate taxes on your home as well as other operational expenses. This can help you get a great deal when paying off the home, since you’ll be able to deduct quite a bit.
Be sure that you recognize the tax benefits of renting out your home if you’re considering becoming a landlord.
5. Demand is Increasing
If you want to experience the benefits of renting out your home, now is a great time to do it. Rentals are becoming more popular than ever and there is currently a high demand for single-family homes.
Rental rates are also increasing due to the rising demand, so if you want to make a solid profit when renting out your home, it’s very doable.
Making the Decision to Rent Your House Out
If you’re thinking about moving, it’s well worth thinking about renting out your current home instead of selling it. By deciding to rent your house out, you’ll be able to experience the benefits and perks listed above.
Need more tips for becoming a landlord? Read through our blog now to find more helpful advice.