There Could be Many Reasons for You to Turn Your Home into a Rental

For many, it can make sense to keep your primary home as a rental property, especially if you’re looking to bolster your real estate investment portfolio. And for anyone who took advantage of historically low interest rates just a few years ago, they are faced with the dilemma of selling and getting rid of that epically low rate forever. Yet many are, especially when it just isn’t financially feasible to hang onto multiple properties or buy the next one without cashing in.

For those who want to keep their property that cash-flows and has a wonderfully low rate, or is paid off, there are benefits. Here are ones we came up with for you to consider.

Additional Income: Renting out your home provides a source of passive income, helping offset mortgage payments, property taxes, and other expenses.

Diversified Investment Portfolio: Owning rental property diversifies your investment portfolio, potentially providing long-term financial stability and growth.

Tax Benefits: Landlords may be eligible for various tax deductions, including mortgage interest, property taxes, depreciation, and maintenance expenses.

Asset Appreciation: Real estate values may appreciate over time, allowing you to build equity and potentially generate a profit when you eventually sell the property.

Flexibility: Renting out your home offers flexibility in case you need to move for work, travel, or other reasons, providing a backup plan for housing.

Market Demand: If there's strong demand for rental properties in your area, you may be able to secure reliable tenants quickly and achieve competitive rental rates.

Long-Term Investment: Real estate is often considered a stable, long-term investment, providing a hedge against inflation and market fluctuations.

Property Utilization: If you're not currently occupying the property, renting it out allows you to make use of the space and generate income rather than leaving it vacant.

Potential for Cash Flow: Depending on rental income versus expenses, your rental property could generate positive cash flow, providing financial stability and additional funds for other investments or expenses.

Future Options: Renting out your home provides the option to move back in or sell it at a later date, maintaining flexibility. This can be an especially nice option if your move may be temporary and is helpful to combat market uncertainty and fluctuation. 

If you’re considering hanging onto your primary home as a rental and the reasons above are speaking to you, it may just make sense in your case to do that.