Between 2005 and 2009, the US Census Bureau estimated more than 37 million homes were rented in the United States. Millions of rental property owners already know that their assets provide them the advantages of income, tax breaks and security. In addition, these individuals feel the pride of ownership that comes with buying a property of your own.
Owning a property gives you a sense of security. In a difficult financial and economic climate, a rental can provide you with a safe haven. In addition, rental properties create options. If you wish to move into their rental property, you can. Conversely, if you need cash, you can try to sell the rental property to raise a profit. Owning a rental property can offer you a fallback option, no matter what life throws at you.
Rental properties allow you to claim tax deductions. You can write off the rental property’s depreciation, which refers to the amount of value an asset loses over time. Any improvements or repairs you make also count as tax deductions. If you pay a mortgage or have any other operating expenses to keep the rental property habitable, you can claim those tax deductions as well. Even theft, damage or destruction to the property can give you a tax deductionPassive Income Many people wish they could earn money without having to work. Owning a rental property offers you just such an opportunity. Rental properties can make money without much effort on your part. As long as you do your part to keep the property in good condition, such as taking care of maintenance issues when they arise, you will not need to expend very much money or energy towards making your investment profitable.