Have you ever thought about purchasing a property to rent? Or maybe turning a hard-to-sell piece of real estate into a rental? While there’s no guarantee that rental ventures will be profitable, they can be successful in certain cases. Here are some reasons why:
- Depending on the property type and location, as well as income expectations, owners may choose to rent a property for short-term, vacation use, or long-term, residential leasing.
- Renting a property can allow buyers to take advantage of good real estate investment opportunities. For example, buyers may be able to purchase properties below market value and then collect rental income while the property’s worth rises.
- Rental properties can help some owners subsidize a future vacation or retirement residence. Owners can choose to invest in a location where they want to live in the future, renting it out until they are ready to occupy the property themselves.
- Depending on each situation, rental properties may have financial and tax advantages. For example, rental expenses and mortgage interest may be deductible in some cases, and structures may be eligible for depreciation under certain circumstances. Before investing in rental property, owners need to consult with their tax professional or financial advisor to understand the tax and financial implications for their specific scenario.
- Property management companies can help busy owners by managing and maintaining properties, handling rental agreements, and even collecting rent. This can help free owners from the day-to-day responsibilities of renting and from dealing directly with tenants.
HSA home warranties can be valuable for rental properties as well as for primary homes. Household breakdowns due to normal wear and tear happen in rental properties, too, and can be particularly distressing for tenants who expect working systems and appliances. Whether owners live locally or reside in another location, having a home warranty network of repair professionals to handle covered breakdowns is helpful, time-saving, and reassuring. Having a reliable repair resource can also help landlords improve overall rental ratings on social media and real estate review sites.
Maintaining rental properties can be expensive, and HSA home warranty coverage can give owners a budget strategy for unexpected, covered breakdowns. By controlling covered repair and replacement expenses, owners won’t be surprised by higher-than-expected repair or replacement costs or unanticipated contractor fees. In some cases, the cost of home warranties for rental properties may be tax-deductible, so owners should always consult their tax professional or financial advisor about their particular fiscal situation.
To find out more about how HSA Home Warranties can bring valuable benefits to rental properties as well as for primary residences, visit onlinehsa.com today.