Each real estate market faces its fair share of ups and downs. There are times when sellers have the upper hand and times when buyers are spoiled for choice. As a seller, what do you do when your property isn’t selling as quickly as you’d like?
The property industry is heavily affected by the overall performance of the economy. When people enjoy a higher purchasing power, they are ready to consider upgrading their living standards and purchasing homes. However, during a buyer’s market, the buyers have more choices due to market dynamics. To encourage a potential sale, some sellers can consider listing their property slightly below market value or making considerable renovations to increase allure by potential buyers.
These options don’t offer a seller the highest possible return on investment nor do they guarantee a sale. Thankfully, there are other possibilities available to you if your property isn’t selling. Putting your property on the rental market is the ideal way to ride out the wave and earn passive income. Several advantages are afforded to you and should the management of the property be a challenge, you can always hire a property management company.
In this article, the team from East Bay Property Management has prepared this brief article to outline the benefits of renting your premises.
The Advantages of Leasing Your Property
While you are fixed on selling amidst unfavorable market conditions, you deny yourself the alternative, earning rental income. Renting your property gives you the flexibility of getting a stable rental income as you wait for the perfect buyer to come in.
One of the major advantages of choosing to lease your property is the passive income. By renting out your property you can collect rental payments that both cover expenses like maintenance and taxes while also generating income. When done right, you can even enjoy massive returns on property investment.
Another benefit that is not discussed enough is the potential for tax benefits and breaks. Choosing to be a landlord comes with several tax responsibilities and also advantages. By leasing out your property, you can deduct the following from your taxable income: depreciation, operating expenses, repairs, property tax, and mortgage interest. You can also deduct expenses that you will incur in conserving or upgrading your rental property. These are accepted by the IRS since you need to keep the ‘businesses in good condition.
Best of all, when the market starts to favor sellers, you can always opt to sell it. Consult with a property management company as they can help you navigate the process of selling a tenant-occupied property.
Property Management: The Benefits
The prospect of property management scares many from choosing the leasing route. The needs of the tenant and those of the property come first and must be tended to without delay. If you lack the time or expertise, you can employ a property management company to see to your needs. Hiring a good and reputable property management company comes with several benefits:
Marketing of Your Property
The first step to renting out your property is establishing an effective marketing plan. Property managers know how and where to market the property to ensure optimal reach. They can design engaging property listings and post them on promised rental websites and social media while leveraging local connections to ensure that as many prospective tenants as possible are aware of the availability of your property.
Tenant Screening and Selection
To give you a smooth transition into property leasing, you need to establish a thorough tenant screening procedure. A screening should include background, rental history, and credit checks as well as a review of previous landlord references.
Screening allows you to select the best tenants from the available pool of tenants. These are tenants who will make consistent and timely rental payments while also maintaining the property throughout the duration of the tenancy.
Professional property managers have the experience and systems in place to ensure that a tenant screening is conducted efficiently and in accordance with the Fair Housing Laws.
Rent Collections
One of the biggest benefits to renting out your property, especially following challenges selling it, is the ability to collect rental income. Property management companies have systems in place to ensure prompt as consistent payments helping you cover your expenses while also generating passive income. With this management of rent collection, you can sit back and reap the benefits without experiencing unnecessary stress.
Property Maintenance
A tenant always wishes for the property to be in the best condition possible. This will require you to put in a significant amount of time and effort. Thankfully, a management company has the experience and resources to handle maintenance issues at whatever time of day or night. This protects the value of your property while protecting your passive income.
Financial Accounting and Reporting
With a property manager on hand, you can remain informed of every financial investment or expense associated with your property. In addition, they are aware of all the tax incentives that you can take advantage of. This will protect your financial bottom line allowing you to make a more informed decision about selling the property with the market once the market turns back in your favor.
Bottom Line
If you’re having trouble selling your home, consider the advantages of turning your property into a rental unit. Apart from the passive income, you can also enjoy several tax advantages. And once you have secured a good tenant for your rental, you can be assured of long-term benefits. If you’re concerned about the prospect of self-management, consider working with a company like East Bay Property Management.
We are the relied-upon property management company in the area, having served hundreds of clients in the past. With our experience in the local real estate market, you can rely on us to offer a wide range of property management services. In addition to this, all our services are priced competitively to make they’re affordable to a wide range of clientele. Get in touch today and receive a quote for our affordable property management solutions!
