Whether the decision to rent your home is the result of your purchasing an investment property or is circumstantial, such as an inheritance, work transfer, or lag in the real estate market, it’s not a decision to be taken lightly. In addition to the monthly rental income and equity you’ll gain from your rental property, there are a number of potential problems which can arise that can quickly turn your dream of being a landlord into a nightmare. Fortunately, there is a solution to renting your home without being a landlord.
Benefits of Owning a Rental Property
Real estate has long been considered a solid investment option and regardless of your reasons for investing, the benefits are clear.
- Tax deductions. Rental property owners can potentially write-off the following expenses: interest paid on the mortgage or credit cards used to purchase items for the property, insurance, depreciation, travel expenses, property taxes, repairs, maintenance, and more.
- Rental income. Once the mortgage payment has been made and a certain percentage set aside to cover property taxes, vacancy, and maintenance costs, the remainder of the rental income is yours to keep.
- Principal payment. The longer you own and rent the property, the more of the loan principal your tenants are paying for you.
- Investment appreciation. Assuming property values will continue to increase, your investment will follow suit.
What Can Go Wrong?
Inexperience, lack of time, or misplaced trust can result in any number of consequences ranging from minor annoyances to total devastation, including the following:
- Late night phone calls. As the landlord you’re on call 24/7 and will need to field any calls or concerns at any hour.
- Legal issues. Without knowledge of the latest landlord and tenant laws and regulations, you may find yourself facing a costly law suit.
- Late rents. Collecting rents on time is vital to your financial well being.
- Illegal activity. Not every bad tenant is a partaking in illegal activities, but any type of illegal activity on your property has the potential for damage, seizure, and potential loss of property.
- Costly evictions. A determined tenant can be difficult and costly to evict.
How To Rent Your Home Without Being a Landlord
Being a landlord is about more than just collecting rent, it’s about protecting your investment. In order to avoid negative consequences and carry out the job effectively, a landlord must possess a certain degree of skill, exceptional knowledge, and have at their disposal a number of quality, trustworthy tradespeople for timely, cost-effective maintenance and repairs of the property.
While this unique set of criteria is lacking in most individuals, the property management professionals at Southwest Mountain Realty are experts in the field and can help homeowners successfully rent out their property and manage every aspect of the rental process from start to finish, including:
- Advertising. Showcasing your property across a number of avenues for maximum exposure and quick results.
- Tenant screening. A thorough screening process helps to gain more reliable tenants who pay their rent on time, take better care of your property, and will likely rent for a longer duration.
- Rent collection. A tight collection process helps to maintain cash flow.
- Maintenance and repairs. With a network of licensed, bonded, insured contractors at their disposal, property management professionals can alleviate you of the stress, time, and high costs associated with property upkeep.
- Tax assistance. Detailed accounting, knowledge of eligible deductions, and fees that are themselves tax deductible make tax time a breeze.
Property Management Professionals in Queen Creek, AZ
Located in Queen Creek? How about Mesa? Or maybe you’re located in San Tran Valley? No problem! No matter your location in the Phoenix metro area, Southwest Mountain Realty is the property management company you can depend on. Whether you need residential, multi-family, or commercial property management, we’re the company your Arizona neighbors have trusted for more than 20 years.
Please contact us online or call us as 480-237-9979 for a free information packet. We look forward to hearing from you!