All property investors know that the housing market is ever-changing. When trying to sell your home, the sale is heavily affected by the current state of the market. Although it’s favorable to sell your home while it’s a sellers market, a buyers market can provide opportunity for homeowners as well!
There are a few different ways that sellers can encourage a sale during a buyers market. They could list the house below market value, update the photos or perform value-increasing renovations. Some may even wait for a sellers market to list their home.
However, none of these options provide you with the highest return on your investment. There is a simple solution when struggling to sell your home that provides peace of mind and passive income, and that is renting out your property.
Turning your home into a rental property has multiple advantages. With great tenants, you can maintain the home and property and enjoy passive income. If you’re worried about the extra responsibility of having tenants in your property, the very simple solution is to hire a property management company!
In this article we will outline some of the benefits of renting out your home, along with the added value of hiring a property management company!
Benefits of Renting Your Home
1. Keep Your Options Open
Deciding to turn your current property into a rental presents you with many options. It allows you to earn passive income in the meantime, and gives flexibility to allow you to sell your home at the right time, when you are able to make a better profit.
Renting your property also allows you the option to move back to this home if you choose. If you are selling your home for a temporary move, such as a job relocation, renting your property in the meantime ensures you have a place to live when you return.
2. Earn Passive Income and Build Equity
Possibly the biggest benefit of owning rental property is the passive income. This is money being made that requires relatively little output. This can be a great option for people looking to make extra money aside from their main source of income. This can also be a great way to build your retirement savings.
Renting your home also allows you to hold onto your asset longer, letting the property’s value appreciate and build equity.
3. Capitalize on Rental Property Tax Deductions
Being a landlord allows for certain tax breaks. Keeping record of your expenses can allow for many tax deductions. Expenses like fees for professional services, cost of appliances, or cost of repairs can all be written off to reduce your tax burden.
4. Become a Real Estate Investor
If you ever wanted to become a real estate investor, starting with a familiar property is your best option! Rather than buying a home that needs renovations, you are starting your investor portfolio with a well maintained home with no unpleasant surprises!
The income earned from this rental property can be put aside to pay for your next real estate investment.
Benefits of Hiring a Property Management Company
While renting out your property can provide many benefits, there are also certain risks. You may worry that your property will sit vacant, that you will have irresponsible tenants, or there will be a maintenance issue to deal with. The good news is, any risk that is associated with owning a rental property can be eliminated by hiring a property management company.
1. Marketing Your Property
Hiring a reliable property management company will ensure that your property is being advertised on credible websites. Your property manager will take photos of your property and list the advertisement on various platforms to ensure it reaches the largest audience of potential tenants possible.
2. Finding Reliable Tenants
Once your property manager has gathered a large pool of prospective tenants, they will be thoroughly screened to ensure only the most reliable and responsible tenant gets to rent your property.
Your property manager will check their rental background history, their credit score, and contact their references to ensure this is an individual who will pay rent on time every month and keep your property in great condition.
3. Maintaining Your Rental
Once you entrust your home with a reliable property manager, you won’t have to worry about any maintenance or repair issues. Your property manager will regularly inspect your property to ensure any maintenance concern is resolved before it turns into a bigger problem.
Further, the thorough tenant screening process ensures that the tenants leasing your property will be responsible to notice any concerns, and notify the property manager immediately regarding maintenance and repairs.
If a repair is necessary, your property management company will have a reliable vendor of contractors to call. This ensures the repair is done quickly, property, and likely less expensive than if you had to call a repair company yourself!
4. Managing Your Finances
Your property manager will keep record of all financial documents concerning your rental property. This will be helpful during tax season, and allow you to write off as many expenses as possible.
All financial documents will be organized and accessible for you to check on the state of your investment whenever you desire.
Bottom Line
Renting out your home, with the expertise of a property management company is a great alternative when struggling to sell your home. If you are looking for assistance in renting out your home in Pensacola, FL and surrounding areas, get in touch with the property experts at NFI Property Management Solutions.
We are an experienced and qualified property management company that can take the stress out of owning a rental property, while maximizing your return. We want to help you achieve stress-free financial freedom. Contact us today at 850-484-2684 or visit our website for more information!