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<\/figure>\n\n\n\nRental properties may be the way to go if you're having trouble selling your home. Renting out this property will allow you to make money while waiting for the right buyer, which can be a blessing when you need quick cash and want to avoid paying someone else for storage.
Look at rental properties in your area to get an average amount you should charge. Then, total up the following expenses and subtract that from your estimated rental amount. This will give you the income you can expect when you rent out your home. These expenses include:<\/p>\n\n\n\n
- \n
- Mortgage Payments<\/li>\n\n\n\n
- Property Taxes<\/li>\n\n\n\n
- HOA Fees<\/li>\n\n\n\n
- Landlord Insurance (property\/injury\/liability)<\/li>\n\n\n\n
- Maintenance\/Property Management<\/li>\n\n\n\n
- Rental Advertising<\/li>\n\n\n\n
- Repairs & Replacements<\/li>\n\n\n\n
- Some Non-Tenant Utilities<\/li>\n<\/ul>\n\n\n\n
Let\u2019s run an example. You have a beautiful 3 bedroom, 2 bath home in Central Maine. You purchased the home for $275,000, but the selling price is only $250,000. So instead of losing money, you decide to rent the property. Local comparable units are renting for $2,300 per month. So you run the numbers:<\/p>\n\n\n\n
Mortgage Payments, $875
Property Taxes, $125
HOA Fees, $0.00
Landlord Insurance, $85
Property Management, $150
Rental Advertising, $25
Repairs & Replacements, $300
Some Non-Tenant Utilities, $68<\/p>\n\n\n\n
That totals $1,628. If you take your total anticipated monthly income of $2,300 and subtract your expenses, you are looking at a monthly profit of $672. That is more than an extra $8,000 every year!<\/p>\n\n\n\nIf You Have the Time, You Can Make a Massive Profit<\/h2>\n\n\n\n
If you have the time, you can make a massive profit by renting your property instead of selling it. Of course, if you are considering listing your home for sale and selling it at market value, that's great! But there is another option worth considering: renting it out. With a little bit of effort, you can easily convert your home into a profitable rental property machine. Do not sell your house in a down market. Instead, decide to rent out your real estate property and earn an extra income that gives you time, freedom, and flexibility to make any decision you wish in the future. <\/p>\n\n\n\n
Still not convinced? Let\u2019s look at the benefits of renting your house out:<\/p>\n\n\n\n
10 Fantastic Benefits of Renting Your Property<\/h2>\n\n\n\n
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<\/figure>\n\n\n\n1 \u2013 Gets You Through a Tough Economy<\/strong>
As the economy continues to fluctuate and property values remain stagnant, you need to find new ways to make money. Selling your home for a low price may not be an option anymore, but that doesn\u2019t mean you have to wait years for it to sell! Renting out your home can provide you with a reliable income while the economy recovers from whatever new political, international, inflation, or socioeconomic issue.
2 \u2013 Provides Tax Advantages<\/strong>
If you are renting out your home, there is much to be gained from the tax advantages of being a landlord. Being a landlord means you can take advantage of deducting any costs associated with owning their property. They may also claim depreciation on their investment property to reduce their taxable income for that year. This helps provide some relief when it comes time to pay taxes each year so you can build pre-tax wealth while others are struggling.
3 \u2013 Creates New Income Streams<\/strong>
If you\u2019re like most people, your home is probably one of the most significant investments you\u2019ve made in your life. Besides the obvious benefits (your own place to live!), it provides equity for future use and provides a steady source of income each month via rent payments. These extra payments help if you have unexpected medical bills, loss of your job, or suddenly have a few more mouths to feed.
4 \u2013 Help Others Needing Housing<\/strong>
If you have a house that is in need of occupants, do not sell your home for cheap. Instead, rent out your house. You can help people struggling to find housing when moving to a new area. We always hear about the housing crisis and how few options there are for people in need. That means you have the power to sift through applicants and select fantastic tenants you can rely upon for income while also providing them a safe home.
5 \u2013 Automation Makes it Easy<\/strong>
Automation makes it easy to manage your rental listings and tenants. From tenant screening to payments, automation allows you to save both time and money while reducing the risk of human error. There are plenty of cloud-based software programs available to communicate with your property management team, accept tenant payments, improve screenings, and more.
6 \u2013 Could Make More with Short Term Rentals<\/strong>
Short-term rentals are another great way to make money from your property without going through the hassle of long-term leasing. You can rent out the home for a week or two and make back more than you would in a long-term lease agreement. In fact, some owners have earned thousands of dollars by renting their properties out on house-sharing apps and websites.
7 \u2013 Save Up to Purchase More Property<\/strong>
If you rent your home, you can use the money you make from renting it out to purchase other properties. You can also use this money to invest in other commercial properties and make even more money. This will help increase your net worth and give you more options for investing in real estate. Many of the millionaires in the world get their start in real estate investing exactly this way.
8 \u2013 Creates a Business You can Pass On<\/strong>
You can also create a business you can pass on to your children and\/or family members. This way, they benefit from being part of your legacy and getting real estate property worth thousands of dollars. Duplexes are fantastic examples. You can purchase a duplex under an HOA loan, live on one side, and rent out the other. The same idea applies to your current property and is a good reason why you do not sell your home cheaply.
9 \u2013 Gives You Time to Consider Other Options<\/strong>
Renting out your home gives you time to consider other options. You can rent it out while you are looking for another home. Or hang onto the property and wait for the market to balance back out. No matter what, you get reliable flexibility instead of rushing to a short sale ending in financial loss.
10 \u2013 Increase in Leverageable Appreciation<\/strong>
If you had bought a house for $200K, but now it\u2019s worth $300K, you have just made $100K on your investment. The same is true if you demonstrate to a bank the increased monthly value of the property. This gives you the leverageable appreciation you can use for everything from small business loans to capital investment sources in a new financial endeavour. When you rent out your house, you have more financial opportunities. This is a great way to increase your wealth!<\/p>\n\n\n\nNo Matter What, Do Your Due Diligence<\/h2>\n\n\n\n