Apart from paying off student loans, starting a family, or establishing a small business, owning a home is one of the top “dreams” or goals for many people. The path towards homeownership is often arduous, requiring countless hours spent finding the right home, acquiring the best mortgage, and paying fee after fee. Once you finally purchase a home, you’ll undoubtedly feel a rush of relief flow over you. But what if life throws a curveball at you? Perhaps you have to move to a new city due to a new job or you’re expecting twins, instead of just one child, so your small two-bedroom home won’t be big enough for your new family. No matter your situation, the option of renting out your home is always a great path to take. You may consider selling it instead, but we’ve compiled a few reasons to keep renting in mind!
1) A Steady Stream of Income
When you rent out a property, you’ll be able to receive a steady stream of income, month after month. Sure, the rent may be much lower than what you might accrue from selling the property, but if you plan on renting out your property for years or even decades, then it will pay for itself in a matter of time!
2) No Need to Worry When Your Team Up with a Property Management Team
Renting out property may seem like an impossible task to take care of. It’s basically a whole other full-time job! But you don’t have to go it alone. With the help of a property management company, such as the Lozano Real Estate Group, you won’t have to worry about the intricate details of home rental. We’ll take care of everything, from screening tenants to collecting rent and dealing with maintenance requests and even evictions.
3) Enter the World of Real Estate Investing
Many people have made fortunes in real estate investing. If you’ve been interested in stepping foot into the world of real estate investing, then this might be your chance! It’s not something for everyone so you might feel a bit safer using a property you already own as your first attempt. Who knows, you might fall in love with the world of real estate investing and you’ll go on to become one of the all-time greats! If you find yourself on the other side of the spectrum, this could all be a fun experience that will undoubtedly benefit you in the long run.
4) The Rent Tenants Pay Can Go Towards Your Home’s Mortgage
You can rent out your property even if you haven’t paid off your entire mortgage. And, best of all, you can use the rent payments to pay off the mortgage. This is the reason why many people decide to buy a home, as opposed to renting. Before long, your mortgage will be paid off and you’ll be able to keep the rental money for yourself. This way, your tenants will basically be helping you pay off your home’s mortgage.
5) If Property Value Increases, You Can Make a Great Return on Investment
Property values fluctuate. Perhaps your property is on a desirable side of town so the rates can be higher than usual, or your home may increase in value thanks to new construction nearby. This can be incredibly beneficial for homeowners who are looking to make a great return on their investment. But this can be a double-edged sword, as well. As property value increases, it can also decrease, leading to detrimental effects. Instead of jumping headfirst into renting, make sure to have all the right information and details in mind. If you’re unsure about how to proceed, or if it’s a good idea to rent your home, then give the Lozano Real Estate Group a call today!