If you’re retired or thinking about retiring, one of the many decisions you’ll have to make is: what will you do with the family home? Many retirees sell their property and move to warmer climates with a laid back lifestyle and a lower cost of living. Others stay in the area but downsize to a more reasonable and maintenance-free home.
Instead of selling your property, consider renting it out. There are a lot of great reasons to rent out your home, and today we’re focused on the five main benefits of renting your King County property when you retire.
You Enjoy Passive Income
If your home is paid off, all the rent you collect is going to be cash in your pocket. That’s a great way to supplement whatever retirement income you plan to earn. Even if you’re still paying down a mortgage, the rent you collect from the tenants living in your home will help you pay that mortgage as well as other expenses like taxes and insurance.
Real estate provides a great way to earn passive income. You don’t need to go out and buy an entire portfolio of rental properties. If you already own a home and you’re planning to move out of it – you already have a real estate investment that can make you money.
You Hold Onto Your Asset
Another benefit to renting is that you don’t have to lose your Puget Sound property. You can hold onto the home and allow it to continue gaining in value. While your home is appreciating, your tenants are paying rent. This enables you to keep a valuable piece of real estate without spending a lot of money on it. Selling it in 10 years is almost certain to be more profitable than selling it now.
Tax Benefits with Rental Homes
When you sell your home, you’re likely to face tax penalties. But when you rent it out, you can actually enjoy some tax breaks that will allow you to reduce your overall tax liability. Rental property owners can deduct the depreciation on their homes as well as expenses related to maintaining the property and accessing professional services to rent it out. That means your property management fee is tax-deductible, and so is any money you spend on accounting, legal fees, or insurance consultations.
Worry-Free Maintenance and Repairs
Rental property repairs are always going to pop up, and that may be a reason that you hesitate to rent it out. However, when you’re working with a qualified and experienced property manager, those repairs won’t really be your problem. Your management company will have access to a list of preferred vendors and contractors who are reliable, professional, insured, licensed, and cost-effective. In fact, most management companies get discounts on the work that’s needed because of the volume of business they provide to plumbers, electricians, landscapers, and HVAC techs. You won’t have to coordinate any of it because your management team is on the job.
Puget Sound Property Management Brings Peace of Mind
We know that a lot of retirees don’t consider renting out their home because they cannot imagine being landlords. Luckily, you don’t have to take on all the hassles and headaches that come with renting out a home. Hire a great Puget Sound property management company to do that for you.
We’re here to help. If you’re thinking about your retirement options, contact us at People’s Real Estate Inc. and Property Management. We’d love to tell you more.