Owning and renting your property is becoming increasingly popular, and on an absolute tear. There are many reasons why this may be the best choice for your Orlando real estate asset. The Orlando Florida Real Estate Rental Market is on the rise and looking strong. Long term rental investments have many benefits and you as a property owner can take advantage. We are seeing more and more new landlords and investors enjoying the benefits of renting their property/properties. Here are the best benefits to renting your property:
Equity Growth and Appreciation
The longer you have a renter that is paying for your mortgage the more equity you are gaining in that real estate asset. When the time is right and the real estate market is high, you can get top dollar for your home and take much more money on the sale of the property! Although, we believe to continue to rent the property, rental increases are continuing to rise and this will likely be the case in our Orlando Rental Market for the near future. With all the new residents flocking to Orlando, there are a surplus of renters that are willing to pay top dollar in rental rates. Whether you are able to pay your mortgage and all expenses, or pay most of it, you are still gaining valuable equity in your real estate asset. Also, you will be gaining appreciation during that time you are renting your property. Quick real estate rule of thumb, real estate appreciation will on average gain about three percent year over year. With riding your rental property, your asset is also gaining value in appreciation.
Your real estate asset is a tax shelter where you can expect many benefits. You are able to write off all expenses on the property. Property taxes, maintenance repairs, management fees, utilities, mortgage interest, real estate depreciation, insurance on the property. These are to name a few. Consult your tax advisor to learn all of the tax advantages of owning a rental property or renting out your property.
If you have great tenants that are maintaining the property and paying rent monthly on the first you can see consistent cash-flow and profits. The profits of owning rental property depends on many factors being, the quality of tenants, financial stability of the tenants paying rent every month. These factors can be strongholds of why you may consider hiring a property management company. Depending what your mortgage payments plus your other expenses that go along with owning that asset, these are going to be whether you are able to break even or gain a profit on a month to month basis. The biggest issue we see with rental properties is the HOA cutting into the profits of real estate homeowners and investors. If your home is in a very high HOA community make sure you run an analysis for how much you can ask for a monthly rental amount.
Economic/Real Estate Market Downturn
There is no indication of the Orlando Real Estate Marketing taking a hard slump, but if and when there is an economic and housing market downturn, you will not want to sell your property in that market. Rental properties have always been a much more stable market. At the end of the day, there will always be renters and more increasingly people to rent your property. The best thing about holding a real estate asset over time, is when the market turns positively, then you will be able to sell for top dollar.
Retirement saving can oftentimes be forgotten or overlooked in our day to day. With rental property, you are required or forced to maintain an asset for the long-run, or if not, your property management company will. Regardless, you will have higher returns and consistent cash flow and have another source of retirement savings rather than just your IRA or 401k.
Long-term Rental Increases
In Orlando Florida, you may be seeing the rental prices increasing. This is a great sign for landlords and investors. With growing demand and dwindling supply, you’ll be able to rent your property for more. Holding your real estate asset and increasing the rate overtime leads to higher cash flow and increased profits. Not to mention, there are still properties on the market or ready to go on the market here in Orlando Florida that have low rental rates. All it takes is purchasing the property, adding your rental property upgrades and then re-marketing the property at an increased rental rate.
These are our favorite benefits of owning rental property. If you are a landlord, homeowner or real estate investor and would like assistance on how to gain financial freedom through real estate investing or renting your property feel free to reach out to The Listing Real Estate Management. We are a full-service property management company here in Orlando Florida, our goal is to save you time, resources, and money for your real estate investment.