We’re going to preface this blog by stating that it is true – landlords often have a bad reputation, but that shouldn’t ever stop you from using your investment property as a rental. Becoming a landlord is starting a whole new business and it’s not about people you care about. If you’ve ever considered renting out your investment property, you should think about the fact you’ll finally be your own boss. There are many pros and cons to being a landlord, but you should seriously consider it.
If you do decide to go down this path, an expert property management company can help you to ensure that you get your rent on time, that your property stays well managed and if there are any problems, you are notified immediately. Working with the right people can mean that you are able to get your property tenanted as soon as possible after it goes on the market. Here are five reasons that you should become a landlord:
1. YOU WILL HAVE A PASSIVE INCOME
Of course, you know that you shouldn’t have a property that you cannot afford. Your tenant will cover your mortgage payments but any insurance will be yours to cover. Your usual payments will still count and yet you can add a markup to ensure that you make a little profit on your mortgage. You can then create a passive income that’ll see you through with a little extra in your pocket. This is the end goal for most landlords.
2. YOU CAN EARN A LITTLE MORE ON TAXES
You can earn a little more on tax. As a landlord, you will have to report the income that you get from your property and that means that you could qualify for tax incentives. Any necessary repairs or overpayments you make can help you and even the costs relating to your investment property advertising can be tax deductible.
3. IT IS A LONG-TERM INVESTMENT
It’s a long-term investment. One of the best things about a property is that it’s a long term investment for you. You’re going to have this as an asset for life and even when it’s not tenanted, it’s going to appreciate and grow in value. One day, you might sell it on and it’ll be cash in your pocket.
4. YOU HAVE FLEXIBILITY TO DECIDE WHAT TO DO WITH IT
You have flexibility to decide what to do with it. If you want to add an extension or a granny flat, you can do that whenever you think it’s right for the property. You have a lot of flexibility to ensure that you won’t lose any income and as you grow your property you can add more rent as the market demands.
5. YOU HAVE THE OPTION TO CHARGE WHAT YOU WANT
You have the option to charge what you want. You shouldn’t ever just charge overinflated prices just because, but you can charge what makes sense for rent. So many landlords raise the rent as often as possible, and it’s vital that you don’t do that if you want to maintain your ability to be a landlord that is respected. Controlling your expenses is important but so is acknowledging the cost of living for tenants.