Home Field Advantage – The Benefits of Rental Properties
As the real estate market recovers in the wake of the recession, there are many new opportunities available for investors with some unique advantages. The demand for rental properties is at a nearly 20 year high, so if you’re considering investing in a rental here are a few added benefits to keep in mind.
When you own a rental property many of the regular expenses of ownership are deductible from your federal taxes. Mortgage interest, insurance, utilities, and even management fees can be written off on your annual claims. These, in addition to withholdings for depreciation can make all the difference when April 15 rolls around.
If you are building a long term investment portfolio, you’ll want to have a healthy variety of assets for stability over time. Unlike other traditional forms of investment, rental income pays regular monthly dividends when you are thorough in your tenant selection.
Of course, not all properties are created equal. There are many factors that go into selecting a high value rental property. Everything from area schools and jobs, to new building projects and neighborhood turnover play a role in determining the long term value of a property.
Our team of property managers and rental analysts are trained to identify these value indicators and advise our clients about the best opportunities to suit their unique financial goals. Contact us today to learn more.