The benefits of renting your property vs. selling

The benefits of renting your property vs. selling

Relocating, upgrading, downsizing — there are many reasons why it could be time to move out of your home and into a new one. Before the big move can happen, however, you first have to decide what to do with your current house. Many assume that selling their home is the best solution in these situations, but renting can actually be more beneficial depending on your financial situation and feelings toward becoming a landlord. These three benefits of renting are worth considering.

If you return, you’ll already have a home

Maybe you’d like to try out a new city for a few years, or perhaps you are relocating temporarily for a job. If that’s the case, consider renting your home during the years you’ll be away. When you return, you won’t have to go through the process of buying a new home again.

Earn home equity or increase your income

Depending on the average rent prices where you live, it’s possible that the money you receive from tenants can cover your mortgage payment each month. When the house is paid off, use the rent money to supplement your income or retirement account.

Receive tax benefits

Yes, rental income is taxable. However, there are numerous tax deductions you can take advantage of to lower the amount of taxes you have to pay. Mortgage interest, insurance, utilities, property taxes and repairs are just a handful of the many tax deductions available to those who own a rental property. YOu have to decide in your investments, just like deciding between single family vs multifamily investments.

If you don’t mind the responsibilities that go along with being a landlord, then renting could be a financially sound solution. Weigh the pros and cons of renting vs. selling to decide which option makes the most sense for you and your current situation.

Call us at 773-573-0101 to set up an appointment to discuss your rental property!

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