Thinking of investing in rental property but worried about meeting the requirements, if any? Are you excited by the idea of purchasing a home, fixing it up, and renting it out? Or have real estate investments always interested you?
Being a landlord comes with many perks. If you are considering becoming a rental property owner but worry about having what it takes, we’re here to explain why rental properties are the best investment.
- Easy to Get Started
To start a rental business, you don’t need a degree nor do you require business experience. Anyone who is savvy enough to recognize that rental properties is a good way to make money and take you away from the conventional 9 to 5 work structure can do it. It’s really as simple as investing in property and renting it out.
- Stable Investment
Unstable job and real estate markets make it difficult some people to buy homes. In fact, the younger generations today are choosing not to own a home to free them from the burden of being tied to one property. They prefer to rent as it allows them to be mobile and go where the jobs are. Therefore, there will always be a demand for places to live no matter where your property is located.
- You’re In Control
From the very start, you are in control. You are your own boss. You choose the properties you want to invest in. You can work from virtually anywhere. You write the lease agreement, make your own “house rules,” and you can choose your tenants. You can choose to decorate and fully furnish the property and charge more, or you can leave the rental space empty and charge less.
Because the rental market is so diverse, you can choose from a variety of property types to specialize in. In fact, you don’t have to choose just one. You can invest in everything from single-family homes to apartments to office buildings to transient homes.
- Tax Advantages
Because you rent out property, you are a landlord with a rental business. As a business owner, you can enjoy tax deductions such as writing off the interest on your mortgage and any credit cards you may have used to make purchases for your property.
Beyond that, you can write off property taxes, insurance, maintenance costs, and travel expenses. The cost of repairs is also deductible. And if you work from home which is typically the case for landlords, you can deduct home office expenses from your taxable income.
- The Power to Exit When You Want
Many people who rent often come to fall in love with the property and make offers to the landlord to buy it. The decision to sell your property is entirely up to you. Thanks to appreciation, you may sell your property for a higher price than when you first bought it, resulting in profits.
- High Return-on-Investment
The ROI, in the long run, is better because when you borrowed capital for your investment, you only used a small portion of your own money. And when you charge rent, their rent will ultimately cover marginal expenses and pay off your loan’s interest payable.