There are pros and cons to renting out your Santa Rosa home. If you are trying to decide whether to sell it or rent it out, you’ll have to take your own financial needs and future plans into consideration.
With the rental market as strong as it is, we believe this is an excellent time to rent out a home. There’s a lot of demand for well-maintained rental properties in desirable locations, and not a lot of inventory presently.
Here are three important benefits that come with renting out your Santa Rosa home.
1. Consistent Rental Income
One of the main benefits to renting your property is that you’ll have tenants paying you rent every month. This provides a steady stream of income, even if you still have a mortgage on the property. Those rent checks will help pay it down.
If you already have a lot of equity in the property or you’ve paid it off, the rent you’re earning is an outstanding and unique source of short-term income. You can use the money to support any of your financial goals. You can invest in other properties. There are a lot of options.
Keeping your property occupied with responsible tenants who pay rent on time is an essential part of leveraging this benefit. Make sure you’re working with a Santa Rosa property management company that excels in leasing properties like yours to well-qualified residents.
2. Appreciating Santa Rosa Home Values
Your Santa Rosa property is only going to grow more valuable over time. While selling is always tempting, especially when you can get a great price on the home, think about the challenges of entering the California real estate market. Prices are high and if you ever want to buy property here again, you may eventually find yourself priced out of the market. When you hold onto the asset you already have, however, you’re still in the market and the value of your property is increasing steadily over time.
Holding your asset for a year, five years, ten years, or even longer will produce larger gains and comfortable long-term ROI.
3. Tax Benefits to Renting out a Santa Rosa Property
It’s hard to beat the tax benefits that are available through Santa Rosa rental properties. You’ll have to report all the income you earn on your annual taxes, but the deductions you’re permitted to take for your rental property are generous. You’ll find you’re able to reduce your tax liability considerably.
Rental property owners can deduct things such as:
- Property depreciation
- Mortgage interest
- Maintenance and repair costs
- Property management costs
- Professional service costs (accounting, legal fees, commissions)
- Property taxes
- Travel costs to and from the rental property
These are just three of the main benefits to renting out your property. When you partner with a Santa Rosa property management company, you’ll find that there’s a lot of value in leasing your home instead of selling it.
We can tell you more about how we help owners like you. Please don’t hesitate to contact us at Redwood Residential Property Management.