Rental properties come in many shapes and sizes, including some very strange ones. Some of the most unique rental properties include a saucer-shaped house from the 1960s, a gigantic wine barrel with a bed inside, a cave, and the backyard of some guy named Steve.
Even if your rental property isn't quite as interesting, it can still bring in a decent amount of income. This is especially true if you happen to live in a major city like Atlanta.
There are more benefits to owning rental property, and we'll talk more about them in this article.
1. Steady Income
Unless you own several different properties, a rental property won't give you enough income to live off of. However, it will give you a bit of extra money every month.
As time goes by, that extra income may start to stack up. We're not talking about a few extra dollars, either.
Rent is often a few hundred dollars per month at least. That adds up to an extra few thousand in any given year.
2. Appreciation in Value
If you invest in real estate, there's a good chance that the property value will increase as time goes by. However, the way this happens is somewhat odd.
While rental houses are a great way to collect some extra money, the value of homes and buildings decreases over time. Upgrading the property every once in a while might stave this off a bit, but you can't stave it off entirely.
Land does the exact opposite. Since land is a finite resource that can't be built, the value is going to go up as the population rises and creates a demand for new homes and workplaces.
3. Tax Write-Offs
What's better than extra money? Extra money that comes with tax write-offs.
Money spent on real estate investments can be deducted from taxes, to an extent. You can't go off and buy another property and expect to get that money back during tax season, but maintaining properties you already own can be written off.
For instance, if you need to make repairs to a wall because your tenants somehow poked a hole in it, you can write that off on your taxes. You can also deduct depreciation from your taxes.
Depreciation means that the investment decreases in value year after year. Property owners often increase rent prices to counter this, but sometimes the depreciation outpaces the rent, so you end up with a net loss compared to the previous year.
The Benefits of Owning a Rental Property
A rental property can be a lucrative investment, provided you don't do it blindly. Make sure to do your research into being a landlord and what that entails. Know how much you should charge for rent, what local real estate values are doing, etc.
If you want more information and advice on owning rental property in Atlanta please visit our site. Feel free to contact us if you have any questions and concerns, or want to know more about our company.