Why You Should Consider Renting Your Home as Opposed to Selling It
So you have been faced with the difficult decision of whether to sell or rent your home or apartment. It is true, that the giant pile of cash that comes after selling can be tempting, especially if you have no idea where or how to start being a landlord. However, there are a lot of things to consider and keep in mind when making this decision and a number of benefits that can come along with renting out your property. Here are three fantastic benefits to doing so.
There is an Increase in the Rental Market
After the housing bubble started to burst, the United States has been transforming into a nation that often rents as opposed to purchasing property. Less and less people are buying homes each day, which means the demand for rental properties is continuously increasing. This trend has given landlords more of an upper hand every year because demand is so high for their properties, allowing them to choose the lease terms and collect prime rent payments.
This also means that it is a lot more difficult to find the right buyer for a home than it is to find the right renter. Purchasing a house is thought of more as a lifelong decision while renting a place can be viewed as a temporary scenario, so people are more likely to act quicker when renting than they do when buying. Sure there might be a lump sum of cash that comes with the sale of a property, but in the long run you can make more money renting without worrying about how long your property will sit on the market.
You Won’t Have to Worry About a Mortgage Payment
Let’s be honest here no one likes to pay bills. Mortgage payments can put a lot of stress on an individual for a number of reasons, one being that it is usually the most costly bill that homeowners pay every month. Owning a rental property can eliminate that payment by using your rental property income to pay for your new mortgage every month, alleviating all of that house payment stress.
Gain a Long Term Passive Income
People will always need a place to live, which is why millions of property owners across the United States rent out their homes to the 35% of the population that isn’t ready to own quite yet. Not only is it one of the more reliable investments to make, but it is almost completely passive income. These individuals often see their property as a path to a their comfortable retirement. The turnover process is the most time consuming part of the lease cycle because it requires advertising, coordinating showings, completing maintenance, and preparing the lease. That said, if a landlord has the right tools to do it themselves or bring on the right partner to efficiently manage the property, an owner can save hours each month and turn their tangible asset into a reliable, automated, passive source of income.