Owning rental property in Tempe can bring you steady rental income and provide a number of tax benefits. If you already own a home and you’re facing relocation due to a job change, a school opportunity or a change in your social status, you need to decide what to do with your home. You can sell it or rent it out, and the answer depends on the status of your mortgage, the current rental market and whether you are prepared to be a landlord.
This is a good chance to be a real estate investor. With a residential mortgage, you made a lower down payment and you’re paying a lower interest rate than if you had initially bought this property as an investment. With that advantage, it’s a good idea to try renting it out. See if you enjoy the experience. This can be the start of building a rental portfolio.
Keeping Your Asset
There is always a degree of uncertainty when you relocate. You’re not sure you’re going to like the place you’re moving to. You might also have an emotional attachment to the home. If you don’t know what’s going to happen with your relocation and your new plans, keep the property and rent it out. If things don’t work out, you can return to your home. If things do work out, you can earn some nice rental income.
Owning rental property also has tax benefits. The depreciation on your rental can result in a lowering of your taxes. This is a discussion to have with your tax advisor.
Cash Flow and Appreciation
Collecting rent every month can provide a reliable income stream to offset life expenses. You’ll also benefit later from the increasing value of the property. Maybe you bought the house when property values were high. Your mortgage might be higher than the value of your home. Placing a tenant in your home means the property value can increase while the tenant is paying rent. You’ll have some income to offset the cost of your mortgage, and the property value will rise. We’ll tell you when it’s a good time to sell based on property values.
Many homeowners are apprehensive because of horror stories they have heard about renting homes. That’s why you work with a property management company. We take first class care of your property and treat it as if it was our own.
If you have any questions about renting out your Tempe home, please contact us at Crest Premier Properties.