There are many reasons why a homeowner might end up with a vacant home, but regardless of what those reasons are, he or she must decide what to do with the property. Selling it is probably the first thing that comes to mind. After all, it’s easy to stick a sign in the yard and think you’ll never have to deal with it again. However, turning it into a rental is often the better option. Here is a look at some reasons why.
Real Estate Market
While the real estate market is on its way up from what it was when it hit bottom in 2012, it’s not quite back to where it was when it peaked in 2006. According to RealtyTrac, many homes were still selling at about 20 percent below their peak prices in March 2014. The number is predicted to rise in the years to come, but putting your home on the market now means missing out on what could be a great deal of profit. Renting it, at least until you are confident you can get your ideal asking price, is good for your bank account.
Tax Deductions
People who rent out their homes gain the ability to write a number of the related expenses off come tax time. These expenses include mortgage interest, property taxes, some money used for improvements, insurance, unpaid utilities, and expenses that occur when you travel back to the city where your rental home is located to do any work related to the property.
Extra Income
In many cases, rental income means extra income for the homeowner, especially if the house is paid for. Even if it is not, the rental income may take care of your monthly mortgage payment and often leaves you with a little extra cash or money that can be used to pay off the mortgage sooner than you originally planned to. It can also help you build equity.
If you are a homeowner in the Atlanta area who is considering renting out your home, give Your Atlanta Rentals a call at 866-331-6626.
