A Few Great Reasons to Own A Rental Home
As a property management company in Gwinnett County and a long time investor, I see 5 huge advantages to owning real estate. Whether you are an “accidental landlord” or an investor wanting to own a few houses, a well purchased, well taken care of home can have it’s rewards.
Reason number one. A rental home is an excellent way to reduce taxes. The depreciation and expenses on the home can offset your full time income. Talk to a seasoned investor and you will be astounded how much they save on taxes.
Reason number two. The cash flow received from renting your home should cover all of your current expenses, future expenses, and a little left over for your risk. If any of these are not possible, either don’t buy or look to sell as quickly as you can. Why? If the last 6 years have proven anything, it has proven to me that the markets expose bad decisions!
Reason number three. The appreciation of real estate is a great wealth builder. We saw an incredible run in real estate from 2000-2005. We saw the bottom drop from 2008-20011. We can look back at the 70’s, 80’s, and 90’s and say the same thing. The real estate market like every other market has it’s fluctuations. I know a handful of people who made the decision to buy during those down markets and got very wealthy in the process.
Reason number four. I can drive by and see, touch, and even smell my investment. I’m not relying on the CEO of a company to make the right decision to make my investment grow. I can decide if a little landscaping will help the home rent faster or get another $25 more per month. I can even schedule a walk thru with the resident to ensure they are taking care of my money tree. Ask your investment advisor to schedule a tour of GE. Just kidding…
Reason number five. If I choose to be hands off and not deal with the day to day property management of the home, I can hire a professional property management company. For less than a cup of coffee and a biscuit a day, a local property manager will handle all tenant calls and requests, perform inspections, collect rent, handle maintenance concerns, and reduce liability from owning a home. Just like an investment advisor. But, I can still drive by and see, touch, and even smell my investment. Check with your CPA, but most owners write off the expense of using a Property Management Company.
Hopefully, I have given 5 good reasons to own a rental home. While owning an investment like real estate may not be for everyone, it’s definitely for me. If you own a rental home and would like to see what a Local Property Management Company can do for you, give 4th Avenue Property Management a call. There are no upfront cost and we don’t get paid until we succeed.