There are many advantages and disadvantages to deciding to rent out your home. Many of these are centered around money, so carefully analyze your financial situation before becoming a landlord. Whether you are looking to purchase an investment property or rent your home instead of selling it, consider the following pros and cons of renting.
Pros
Extra Income
Rent checks provide a reliable source of money that can go toward the property’s mortgage, be reinvested in other properties, or simply supplement your household income.
Tax Deductions
You can deduct a number of rental-related expenses including property taxes, insurance, and even utility bills if you include them in the price of rent.
Security for the Future
Receiving rent each month can also help you save for retirement or emergencies. Owning a rental property in downtown San Diego also means you have a property you can move into if your living situation changes, like if you want to downsize or experience a disastrous event like a flood or fire.
Cons
Extra Responsibilities
If anything goes wrong with the property, day or night, whether you are in town or not, it is up to you to deal with it. You could also encounter problems like late rent payments, property damage, or even a legal battle if you and the tenant have a particularly bad disagreement.
Reselling the Property
When you do decide to list your condo for sale in downtown San Diego, keep in mind that it may not happen right away. Fees, the state of the housing market and needing to give tenants fair notice can make the selling process costly and long.
Expenses
Most expenses for keeping up a rental property are not tax deductible. These include furniture and decorations, repairs, appliances, safety certificates, landlord insurance, and the tax on your extra income from the rent.
Ready to become a landlord? We can help you find a condo or loft for sale in downtown San Diego that will generate rental income for years to come. Check out inventory online or give us a call at (619) 649-0368 and schedule an appointment today! ')}