With so many Americans not wanting to sell their homes, they've become accidental landlords. If you're in the California Bay Area, you might find yourself in the same predicament.
If you've never planned on becoming a landlord, you'll still be tempted to eventually sell your home. However, there are many great reasons why you shouldn't sell a home in the California Bay Area.
Being an accidental landlord offers many opportunities that you may not have considered before. Here are the benefits of owning a rental property and why you shouldn't sell.
1. It's a Form of Passive Income
Running a rental business is an active process at first if you want to maximize your income. However, if you're persistent, you can make a great return on investment. Eventually, it becomes a form of passive income.
2. Portfolio Diversification
If you're an investor, you're always looking out for new assets that promise a high return on investment. You want to choose ones that don't cause too much stress to manage.
While you do need to work on preparing your property, you'll find this is likely one of your best investments. One can't always depend on the reliability of the stock market. No one knows where the Bitcoin price will go!
However, we all know that everyone needs a home. We also know that there's a nationwide housing crisis. This makes owning a property more valuable than ever.
You'll definitely find tenants for your rental property. You'll only have to worry about offering the best deal to increase your profits.
3. Tax Deduction Options
The high tax rates in California often deter many investors from considering any asset class. However, owning a property can offset many tax obligations.
For example, any operating expenses can potentially be deducted from your rental income profits. You might even qualify for a depreciation deduction that can reduce your required tax payments.
There are many opportunities to lower your taxes. This is a great way to earn an income and keep most of it!
4. Business Skills
The final advantage of not selling your rental property is to learn business skills. By managing this property and putting it on the rental market, you'll become an entrepreneur.
Once you master the skills, you can hand the tasks over to a property manager. If you hire a property manager, they'll handle the most difficult responsibilities for you.
You'll just have to check in once in a while. However, with a property manager, you'll collect your earnings and let the property manager deal with the tenant!
Accidental Landlords Have Opportunities
Accidental landlords will continue to be on the rise for the foreseeable future. If you hold onto your property, you'll give yourself a lot of opportunities to earn income.
The best news is that you don't have to do it on your own. You can hire a property manager to help you.
Blue Line Property Management is the best property manager in the Bay Area. Our team has a diverse range of experience in the real estate industry and is looking forward to helping you.
