Whether you were offered an exciting new job in a different city, started a new relationship with someone on the other side of the world, or have a second home that remains empty most of the year — the thought of selling or renting your property must have crossed your mind. If your circumstance sounds similar to one of the scenarios above, you should consider renting your property. This solution provides owners with a wide array of benefits and preserves control over the property.
Collect Consistent Passive Income
Assuming you have owned your property for at least a few years and have a competitive loan, you should have paid down some of your mortgage. Between reducing your mortgage and your property value appreciating over those years, you have room to generate some cash flow through renting.
Citing an article in the Post and Courier, "rent prices in the city of Charleston continue to rise, increasing ... 2.9 percent over the past year." Not only have the rental rates increased but the demand to rent properties is at an all-time high across the country. According to the US Census, "the rate at which new units are rented out is at the highest level in three years". With these positive rental trends owners will comfortably have some extra income each month.
Securely Maintain Ownership of Your Property
One of the best parts of renting your property is that your still own it! Let's say things with your distant lover fall through or your new job isn't what you expected – renting gives you a safety blanket so you can always move back. In addition, renting can carry you through rough economic times by covering the expenses of your property. This security blanket allows you to not have to sell on a loss and hold out until the market rebounds. If there is any doubt about relocating, or you know you may want to move back into the property later, renting allows you to keep your options open.
Enjoy the Tax Benefits
As a landlord you are eligible for a variety of tax deductions and deprecations which can help offset any losses or expenses with your rental. For example, you can write off mortgage interest and real estate taxes on your property. Expenses towards the property's maintenance, Homeowner's Association fees, insurance, and utilities can be deducted as business expenses as well. For specifics regarding proper tax filings, deductions, and write offs please consult with a licensed CPA.
Don't Sweat the Small Stuff
Being a landlord comes with various stressors such as tenant relations, collecting rent, property damage, and more. Luckily, there is no need for you to have worry about all of those things. Island Realty has been managing properties in the Charleston area for over 40 years and can help you get the maximum return from your property without the stress of the daily operations. Every owner who joins our program will be assigned a dedicated property manager who is committed to achieving your property's goals and success. This allows you peace of mind that someone is looking out for your property and available to speak with when you need them.