The housing market trends have changed drastically over the course of the last couple of decades. Instead of young people itching to buy homes, they’re turning to apartments and condos for short-term commitment leases that give them the freedom of movability. This increase in rental property popularity means there has also been a spike in the number of new landlords on the market looking for tenants to occupy their properties.
If there’s ever been a good time to pursue investment property and become a landlord, it’s now! These 4 reasons will be enough to push you to a new career path!
Reason #1: The income
Every job is about making enough profit to offset your monthly outgoing costs while being able to keep a little extra in the bank. Depending on location, owning property in certain cities and towns could be the simple defining factor of how much profit you’ll be able to make from tenants willing to spend more to live in a bustling or beautiful area. These 10 cities are on the up and up on the housing market:
- Chicago, IL
- Atlanta, GA
- Louis, MO
- Cincinnati, OH
- Tampa, FL
- Houston, TX
- Columbus, OH
- Indianapolis, IN
- Huntsville, AL
- Albuquerque, NM
Owning rental property in these up and coming cities could prove to be one of the most profitable decisions aspiring landlords could make today. No matter what type of rent you plan on charging, the steady income generated from tenants makes land lording a lucrative career path. You could be making anywhere between $35,000 and $60,000 a year in your first year renting!
Reason #2: The people
Now, this is a reason you won’t find on many lists of reasons why you should pursue land lording— but it should be! While it’s true that your tenants will be your source of monthly income, they will also turn into familiar faces depending on how you choose to involve yourself with the property. Making meaningful relationships with your tenants is one of the least talked about perks to the job.
If you have high turnover in a young, busy city, you’ll see a vast array of new faces on a yearly basis. When you keep tenants who are loyal to your property, you will likely hold those tenants near and dear to your heart for years to come. It truly is the people that make this job so rewarding.
One thing landlords must be sure of when renting their spaces out is that they are only putting favorable tenants on their property. The last thing you want is for one dreadful tenant to wreck the space and knock the value down by thousands. Landlord credit checks, background checks, and eviction history checks are essential tools all tenants should use.
Reason #3: The long-term payout
Say you purchase a gorgeous loft that sits alongside the Chicago River. If the city’s economic trends continue to rise like they are expected to, the value of that loft will rise and rise as each year passes. Not only does the city location make this loft valuable, but the riverside situation makes it a total sell. That means potential tenants will be willing to dish out more money for a prime location. And down the road, in 10 to 20 years, putting that property back on the market will have a much higher payout than your original purchase price.
Reason #4: The tax benefits
Did you know that owning real estate comes with a number of tax deductions and benefits? Landlords reap the financial benefits in four different arenas when tax season rolls around.
Interest: Landlords are able to deduct the interest accrued from mortgage payments on loans used to purchase their property. Interest accrued from credit cards purchases used for property enhancement is also tax deductible.
Repairs: Part of the job of being a landlord is taking care of any repairs to damages on the property. So everything from hardwood floor fixes to broken appliance replacement all qualifies as tax deductible.
Insurance: Any insurance premiums from insurance policies agreed upon for your rental property are tax deductible. This includes landlord liability insurance, fire and theft insurance, and the cost of an employee’s insurance.
Home office: DIY landlords who have constructed a home office to run their small business are able to deduct the expenses attached to their home office construction.
There’s no time like the present, and when it comes to making money, there’s no time to be wasted. Being a landlord is one of the gems in the career market that people often look past in favor of a more typical 9 to 5 job. This lucrative gig is one of the hottest career paths of 2019!