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If you own homes for rent, is it better to keep them or sell them? That's easy: you definitely want to hang on to them. And here's why.
For starters, rental leasing earns you a steady, reliable stream of income. And with help from a skilled property management team, this income is almost entirely passive.
In the meantime, your rental home continually appreciates, earning you equity. Your investment property also earns you tax deductions. Furthermore, being a landlord gives you the chance to help people who need a home.
Want to learn more about these awesome benefits? Then keep reading.
1. Reliable Income
Rental income is one of the most reliable types of income there is. As long as you know how to secure high-quality tenants, your rental homes stay occupied. Then, you receive the rent checks each month like clockwork.
Also, the more rental properties you own, the more reliable the income is. If one tenant leaves, you still have plenty of others on whom to rely.
Additionally, rental income is protected against inflation. Since there's no rent control in Washington, simply raise the rent to offset inflation as necessary. Get a free rental analysis now to see how much you should charge for rent.
2. Passive Income
Being a landlord isn't automatically passive. There's a lot of work involved, like keeping track of repairs and getting reluctant tenants to pay.
However, you can (and should) hire property management for these tasks. Then, your rental income keeps flowing in with very little involvement from you.
3. Short-Term and Long-Term Returns
Best of all, rental leasing earns you short-term returns (rent) while you wait for your long-term returns. Specifically, the value of your rental properties keeps increasing while you make money from your tenants. Plus, you'll steadily pay down any mortgages you have on these properties.
In time, the value of your rental property could increase by $100,000 or more. It's not a terrible idea to sell when this happens.
Still, holding onto the property gives you equity. Then, you can borrow from this equity to purchase other rental homes.
4. Tax Deductions
Investment property owners are entitled to special tax deductions. You can earn deductions from property taxes, property insurance, mortgage interest payments, and more. These deductions reduce the amount of upfront capital you need to start investing.
5. Help People Find Homes For Rent
Lastly, being a landlord is a very rewarding career. It feels good to help people find the rental homes they need.
Hold onto Your Rental Properties
In short, don't sell your homes for rent. Keep your rental properties so you can enjoy all these benefits for years to come.
But, if you're overwhelmed with your workload as a landlord, we can help. HomeRiver Group can manage your properties and help you get high-quality tenants. Contact us here to get started or to find out more.
