The days of everybody in their mid-20s entering homeownership are nearly extinct. Sure, there’s an outlier here and there, but most millennials are opting to rent. Surprisingly, millennials aren’t the only one’s choosing to rent. The number of baby boomer generation renters have increased by approximately five million people in the last 15 years.
There are a multitude of reasons why this is happening; student loan debt, flexibility and undesirable home ownership responsibilities to name a few. This opens the door for homeowners to venture down a new path of possibilities, this would be the path of becoming an INVESTMENT property owner. Becoming an investment property owner benefits both you and possible renters. In this blog, we’ll discuss those benefits along with why owning a rental property is a wise investment.
The most obvious benefit when becoming an investment property owner is it provides you with a direct source of income each month. Depending on if the house is paid off or not will dictate the profit you make and the rate you charge, in addition to other factors such as:
- Community fees
- Lawn maintenance
- Pool maintenance
- Property management
Any fees associated with the overall upkeep of the property will affect both income and the rate you charge tenants. Either way, it’s worth it in the end because you can be paying off a mortgage without it coming out of your pocket, or the vast majority of the payment is going straight to you because the home is paid off.
Sweat equity allows you to make upgrades to the home at no major cost to you. Improvements such as:
- Interior/Exterior paint job
- New roof
- New siding
- Landscaping additions
They can all add value to your property, in turn, allowing you to charge more for rent down the road. Or when you possibly want to sell the home, reap the benefits from all of the upgrades by selling for more than you purchased it.
Reed Property Management
It can be inconvenient becoming an investment property owner because active involvement in managing the property is required. But we have some exciting news for you! Reed Property Management can relieve you of that burden by taking care of your rental property! We’ll handle tasks such as rent collection, background checks, maintenance repairs, property inspections among many other services. If you’re considering becoming an investment property owner, contact Reed Property Management and we’ll guide you through the entire process!