More homeowners than ever before are seeing the benefits of renting out the home they currently live in. This arrangement is common for people who have a two-unit building since they can live in one unit and rent out the other. There are many obvious advantages for renting out owner-occupied homes, but there are also benefits people may not see right away. Louise Suchanek can help homeowners identify the benefits to present a clearer picture of whether this type of arrangement is suitable for a particular person or family. Here are the main reasons why people consider renting out their homes.
When Louise Suchanek does an analysis of homes in the area, sometimes it’s surprising to see that a two-unit building sells for about the same price as a single-family home. Renting out one of the units can help pay for a portion of the mortgage, and sometimes even the entire thing. The money received from renters can be used to make upgrades to the property, purchase more homes or put aside for other goals. Not having to worry about paying the full mortgage every month is one of the something Louise Suchanek frequently hears from homeowners who rent out their property.
Even though the owner-occupied home is a rental as well, the owner can save a significant amount of money on maintenance costs by doing it themselves. Having a property manager maintain the home and lot can be expensive and cut into profits significantly. Think about all the details a property manager has to take care of, like mowing the grass regularly, fixing plumbing issues, repairing electrical components, replacing essentials and more. The property owner can do all of these things themselves and save a significant amount of money by doing so.
Louise Suchanek will tell any property owner that one of the main tax advantages of having a rental property is depreciation. Property owners can deduct part of the cost of the building and also the cost of any capital improvements made to the home.
Another tax benefit Louise Suchanek tells her clients about is the mortgage interest deduction. When a property owner lives in the property they are renting out, the interest paid with the mortgage payment can be deducted from the owner’s income.
The key factor in taking advantage of both of these tax benefits is distinguishing which portions of the property are used for personal use and rental use. Louise Suchanek can help her clients clearly determine this to prevent any issues from occurring.
Louise Suchanek has been a real estate agent in Southern California’s San Gabriel Valley for many years. She is an expert in the real estate industry and has helped hundreds of people find the best situation for them.
Whether you’re looking for a new home for your family or are considering purchasing a home to be a rental property, contact Louise Suchanek today by calling (626) 393-8828 to learn everything you need to know about the process.