The initiative of having a commerce option that offers hassle-free income is gratifying to anyone, which is one of the main reasons why such a large number of people opt to own and manage rental properties – such as duplexes, houses, apartments or guest homes. To someone who hasn’t tried their hand in the business, it might seem as if property owners don’t have to do much other than spend 20 or less hours a week, collecting rent from their tenants.
However, the fact of the matter is that this investment is one that offers a huge payback undeniably, but there are complications too. For the most part, if you manage your rental property with the assistance of an estate agent, the profit is often divided. Most people tend to opt for a property manager only because they don’t know any better.
But there are a lot of benefits of managing it on your own – even if it’s easier said than done. Here are 5 of the topmost benefits of managing your own rental property:
1. Monthly Paycheck
The main benefit of opting to rent out privately is that the monthly paycheck is all yours to keep. When you opt for a property manager, the rent or the profit is often divided between the owner of the property and the real estate agent – not to mention, the additional fee that the property owner is obligated to pay to the agent.
2. Growth in Property Value
When the price of a property increases, property owners are obligated to increase the rent of their property as well. And considering the fact that the price of property only increases and it is not very likely to decrease – unless the owner doesn’t maintain it – is a sure-fire sign that there’s only growth.
3. Complete Privacy
Often times, when property owners opt for the services of real estate agents, they must keep the agent in the loop at all times. This means that giving minute to minute updates to the agent is necessary. If you manage your own rental property, the information stays with you only.
When dealing with a real estate manager, a lot of things comes into consideration and as the landlord, you are restricted and unable to work as you would like. Independence in this regard, is highly useful for the landlord and the tenant as well. You will be dealing directly without external influence or interruption from a third party.
5. Taxation Benefits
As the landlord, you will be able to get a huge paycheck in your pocket at the end of the year due to the high amount of taxation benefits that you’re obligated to. Thus, if you own a number of properties, the amount that you get at the end of the year will be enough to cancel out all maintenance costs, bills, depreciation, etc.