In part one of this two-part blog series, we went over some of the primary benefits of purchasing a home to rent and becoming a property landlord. This is often a great investment for those with the time and capability to manage it, allowing for multiple properties owned and profits generated that can be placed toward the mortgage and other beneficial areas.
At Primary Residential Mortgage, we offer a wide range of mortgage rates and programs, from conventional options to FHA loans and many others. The potential benefits of renting a home out are so numerous that we had to stretch this into a second blog entry – let’s look at some of the other possible areas where you could see great returns here.
One major area to keep in mind here is the potential tax benefits, which are great for many landlords. For one, you’re able to deduct a number of different basic items: The interest you pay on your mortgage, any depreciation costs, plus any repairs that have to be undertaken to bring the property’s quality up to a level where it can be rented.
In addition, you can also usually deduct several other items as well. These include insurance premiums on your rental property, plus home office expenses if you work from home or out of one of your buildings. All of these deductions save you significant funds over the course of a given year, especially if you rent multiple properties.
Another big benefit for many landlords is the additional income generated toward a retirement fund. This is a dual-functioning area: Not only is it a great way to build up such funds, it’s also a task many people can continue to perform even after they retire from their primary career. This ensures income continues to roll in even after retirement, coming from a simple source you can control your level of involvement in (there are plenty of management companies to assist you if you feel you can no longer perform certain tasks).
Finally, many people simply value the independence that comes with being a property landlord, especially if you have several properties and draw your primary income from this area. You have control over the properties you purchase, the kinds of tenants you bring in, and the way you care for the property. You can make your own schedule with ease, meaning it’s simple to schedule around another job or even part-time work. And best of all, you keep all the profits generated for yourself.
For more on the benefits of becoming a property landlord, or to learn about any of our mortgage rates or home loan programs, speak to the staff at Primary Residential Mortgage today.
*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.