On a daily basis, property owners throughout the Twin Cities mull over the idea of renting out their home. How would I do it? Is this the right time? What if something goes wrong? Just the thought of moving out of your prized possession and opening it up to total strangers can be scary. But know that property owners make the decision to rent their property every day. And it doesn’t need to be intimidating. Before bogging yourself down in the details of renting your home, let’s first look at a list of key reasons why someone would consider renting out their property.
- You want to expand your wallet
Who couldn’t use an additional income source? Renting out your property is a viable money-making venture if you’re able to bring in enough rental income to cover the mortgage, expenses and allow some income for yourself. One of the most popular questions property owners ask is what their property will rent for. There are many factors that influence the amount. Simply Residential Property Management conducts a thorough market analysis of the property, which reviews the market, the competition in the neighborhood and the interior and exterior condition of the property. Our goal is to produce a competitive price while also providing you with the highest return. With this market analysis in hand, we allow the owner to decide on the final price.
- You are no longer able to stay in your current home
There are a number of reasons a property owner may choose to leave a home. Perhaps it’s due to a job transfer to another market. A budding relationship may mean leaving an existing home behind. Sometimes an owner will run into cash flow problems and no longer be able to cover mortgage and home expenses. No matter the reason, renting out your home can be a solid temporary solution. And whereas selling is permanent, renting gives you a fallback option to take up residence again some day.
- The market just doesn’t want to let you go
As property owners, we’re all at the mercy of the market to some degree. We may be ready to sell our home but if the market isn’t going to give us the selling price we want, we need to wait. But this temporary phase need not be painful. Take some time to allow the market to adjust by renting your home. While Twin Cities’ property values are still recovering from years past, signs are clearly pointing to continued growth in the market during 2016 and going forward.
- The tax man cometh…and giveth
Last but not least…taxes. No one likes taxes but how about tax deductions? Renting a property means deducting many costs. The cost of independent contractors like roofers, painters and other maintenance workers can be deducted from costs of a rental home. Rental property expenses like utilities and travel costs when doing business can be deducted. Even landlord insurance is a deductible expense. The word ‘taxes’ never sounded so sweet.
Did any of these reasons resonate with you? If so, it’s time to take the next step and research what it takes to rent out your home. The Simply Residential Property Management website has an excellent FAQ section that answers many questions that property owners have. In addition, we have a free rental property analysis on our website that allows us to provide a custom quote. Our staff would be happy to sit down and discuss your goals and concerns. Happy Renting!