A divide in the U.S. housing market is growing. For many buyers, the pressure of today’s higher mortgage interest rates is stretching them thin in metro areas where real estate is already too expensive. Builders are not helping the matter as they pull back on new construction, plaguing the markets with low inventory. On the other hand, the demand from growing families seeking the single-family housing continues to rise and their willingness to rent is evident in the national numbers. A new report from HotPads states that U.S. renters paid a record $504.4 billion in rent in 2018, showing a $12.6 billion increase from 2017’s totals. So what does that mean for you? For Stamford property management company Real Property Management Southern Connecticut, it means that this is an incredible time for you to rent out your home, instead of selling it.
The Benefits of Renting Out Your Home
Collecting Robust Rent Rates
Rental real estate analysts agree that rents across the U.S. are forecasted to continue to grow in 2019. The driving force behind this increase are higher mortgage interest rates, which are preventing some renters from making the leap into homeownership, despite the strong job market. According to a report by Abodo, a rental search site, rents rose approximately 2-3% in more than half of U.S. states in 2018 from the previous year. Stamford property management company RPM Southern Connecticut can attest to the rise in rent rates in Connecticut, being on par with the national rate increase. With that knowledge, home owners can be more confident putting their homes up for rent. If you are unsure of a property’s rental rate potential, it is best to consult with reputable property management companies. Homeowners have found more success renting out their home when they worked with a company like RPM Southern Connecticut who offer tools like local rent rate analysis and budget building for your new rental.
Helps Build Wealth
By keeping your home as a rental property during the prime of your income earning years, you have a unique opportunity to actively build wealth for your future retirement years. By reinvesting your earnings from the rental home, you can grow your nest egg faster. When you partner with a Stamford property management company like RPM Southern Connecticut, you have access to professionals who can walk you through the process.
When you decide to rent out your home instead of selling it, you become a real estate investor. Property investors have access to a variety of tax benefits they can claim for owning rental properties. Tax breaks on rental property expenses such as insurance, property taxes, maintenance costs and legal fees help you mitigate your risks while growing your returns. Of course, exactly how much you can deduct depends greatly on the kind of rental income your home produces and the housing laws in your area. Nonetheless, these tax benefits certainly increase your profit and return on investment. Our Stamford property management agents at RPM Southern Connecticut can help you understand in greater detail what kinds of tax benefits you may be entitled to as well as provide detailed accounting reports and tax documentation.
Property Value Appreciation
As a homeowner, you understand the value of appreciation when it comes to real estate. Even is you choose to rent out your home, you are still reaping the benefits of increased property value, all while generating a stream of income from the property’s rental cash flow. The best part is, you still have the option to sell the property later down the road. Since the rental money received should have covered your expenses during the time of your rental ownership, your chances of turning a profit on the sale are higher. It’s a win-win for rental owners who manage their investment properties well. With the help of a reputable Stamford property management company, you can make a actionable plan for keeping your property in tip-top shape.
A Hedge Against Inflation
With mortgage payments on your rental property being paid by your renters, property owners are less affected by inflation Locked-in at a lower mortgage interest rate from your original purchase date, your risk is offset by your ability to increase your rent rate. You can do all of this while still benefiting from increasing property values. This is especially helpful when selling your investment property in an inflated market when housing inventory is low, as you can list your property at a competitively higher price and turn a profit.
Working with the Best Stamford Property Management Company in Connecticut
Now that heard the compelling case for renting out your home instead of selling it, it’s time to decide if you’re ready to partner with a professional property management team to get your home ready for the rental market. As a nationwide company with over 275 offices, Real Property Management is equipped to guide you through the process of putting your home on the rental market, and managing it in an efficient and professional manner. Our industry-leading services include:
- Easy to Understand Cost-Effective Pricing with No Hidden Fees
- Comprehensive Rent-Rate Evaluations
- Extensive Knowledge of Local Demographics
- Customized Marketing Strategies and Rent-Ready Assistance
- Regular Interior and Exterior Property Inspections
- Affordable Remodeling Services
- Risk Management and Eviction Services
- Independent CPA Audits on Owner Trust Accounts
- Easy-to-Understand Accounting and Maintenance Reports
- Online Rent Payment Management and Owner Direct Deposit
We offer the tools you need to be a successful real estate investor and coach you through the entire process. We also offer a library of free video resources and a friendly customer service team to help answer all of your questions. We want to help you achieve your financial goals. Call us today!