Every now and then, someone winds up owning a home they have no intention of living in. Maybe it’s your old house and you have since bought something better, perhaps you inherited it from a recently passed loved one, or you might have bought it as a vacation property and just never get the time off you intended. For whatever the reason you have a spare residential property, there’s no need to sell!
If you just did a double-take, we’re not surprised. You’re probably getting advice from every direction to sell, sell, sell but this may not be the best financial choice for you or your family for a number of reasons. Property is an incredibly valuable asset, and not just as something to buy and sell. By simply owning, maintaining, and making good use of your spare home, you could be making a significant amount of nearly passive income each month.
This is Your Investment Property
Investment property is the property you buy in order to make money off of it. The income is usually generated by renting residences to individuals and families. The rent they pay can cover mortgage payments, if any, along with any maintenance and repairs. This not only makes the property completely free to keep in your possession, anything left over is pure profit and passive income for you that comes in every single month. This simple, comfortable landlord mechanic is what draws so many people into quietly buying a collection of homes and building a retirement fund from rental income.
You Can Even Airbnb
In fact, you don’t even have to do things the traditional way, though there are certainly enough professionals and families clamoring for comfortable single-family rental homes. The most popular new trend in investment property is to furnish your property and list it on Airbnb or VRBO as a vacation rental property and book it out nightly to travelers and tourists.
Dodging the Real Estate Hassle of Selling
What may surprise you is that renting is actually a lot easier to do than actually selling the home. Moving property is an incredibly tedious business that requires a lot of dedication from everyone involved. To sell, you’ll need a real estate agent and a lawyer. You’ll need to stage the home, give tours of the home, and haggle over price with every potential buyer who comes by. With renting, the minimum requirements are to have the home cleaned and prepare an appropriate lease.
Landlording Hands-Free with Property Management
While being a landlord does come with some responsibilities like maintenance and repairs and handling emergency situations, there’s also nothing in ‘the rules’ that says you have to do this yourself. If your ideal situation is one that handles itself, simply hire a professional property management service. These pros will ensure that your tenants and the house itself are well taken care of. Most property management services will even handle staging, seeking and screening tenants, security deposit protocols, and cleaning the property between tenants as well as regular maintenance tasks. Great property managers can even add value to a home by improving the property’s quality over time.
Owning an extra residential property is, in fact, an amazing opportunity to start making truly passive income. With a great property management service, you can keep the valuable personal asset at zero cost, give renters a nice home to live in, and collect the monthly profits with absolutely no effort. Why go through the hassle of selling the home for a lump sum when you could guarantee yourself passive income by renting it out instead? For more helpful property management tips, contact us today!