If you have always been someone who rents their main home because you don’t spend much time there, think again. You may be a housesitter who moves from place to place without staying too long in one place. Think again about the advantages of owning and renting out your home. There are many benefits to being a homeowner and especially a landlord. Here are some ideas to consider.
Thinking of renting? 6 reasons to become a landlord
The idea of buying a property to rent it out might seem like a lot of effort. But as a homeowner you will have many benefits. You have to furnish and decorate, sort out tenant insurance and be prepared to organise repairs at the drop of a hat. You don’t only have to worry about your own home, but the home of your tenants too.
However, there are many perks of being a landlord and either offering rooms to rent or renting out a whole property. Many people find it extremely rewarding. So, if you’re thinking about buying a home and becoming a landlord, what are the perks?
Make a profit as a landlord
The biggest reason most homeowners become landlords is because, once you’ve bought the place, made it liveable and got some tenants, it’s easy money. After you’ve paid the mortgage and any other property related expenses, everything you have left is yours to keep. You call the shots and agree how much your tenants pay per month. So you can work out how much the property is worth and how much you need. There are few jobs that get good money for doing so little.
Another benefit of being a landlord is that you get to claim tax deductions against your rental property. Some expenses can be deducted in full, such as advertising, whereas other deductions are based on the percentage of your home rented out. Common expenses you can deduct include heat, hydro, water and home insurance.
A way to save
If you’re a first-time home owner, becoming a landlord can be a great way to get you on the proper ladder. It can help you save money. Money put into property is a much better way to save than keeping it in a savings account. This is because your money won’t be impacted by inflation, and you’ll keep earning extra from your tenants’ rent, too. So, if you’re looking for a reliable way to save in order to buy a bigger or better property, buying and renting out your house could be the answer.
Many people see becoming a landlord as an excellent way to take an early retirement. You quickly save money and don’t have to continue doing your day job. It’s a great extra income that allows you to take some rest in your later years.
A sense of purpose
While some landlords are more involved than others, many enjoy the sense of purpose that being a landlord provides. You have the responsibility of ensuring your tenants are living in a warm, safe and clean house. Having happy tenants who enjoy where they live can be rewarding, especially if you make a good connection with them. Tenants who respect you will also look after your property and keep it in good shape.
Depending on where you buy your rental property, it may well increase in value. This means that, when you come to sell the property, you’ll make a good profit. Look for areas that are becoming popular with young professionals for the biggest profit.