Leasing a property can allow the owner to build equity as home values increase while earning rental income. It can also be a good idea if the owner is planning on returning to the area in the future.
However, owners need to be prepared financially and emotionally for having a tenant live in their home. Tenants may not take the same care of the property as the owners have. For some people seeing the home where they raised their children after tenants have been in possession for several years can be traumatic. Other landlords appreciate receiving tax deductions for their investments in improvements.
The landlord is responsible for all maintenance while the home is tenant occupied. The owner must be able to afford maintenance and repairs, periodic improvements as well as all expenses during vacancies even if the property has a negative cash-flow.
Managing a rental property also requires knowledge of a multitude of ever-changing laws, the ability to deal with sometimes difficult tenants, and the potential of middle of the night maintenance emergencies. Hiring a professional property manager can alleviate many of these practical issues and fees are tax deductible.
We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!
Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.