Owning a property is a huge financial asset. However, sometimes, there comes a situation where you need to leave for personal or professional reasons, and you have to choose between selling and renting it out. There are advantages and disadvantages of both these routes, but, based on our experience, we recommend renting your Arlington property, instead of selling it away.
The reason is simple. Selling your current home can give you a one-time lump sum amount. However, this means you have to give up on potential profits in the future, as the property value increases in the competitive Arlington real estate market. Renting, on the other hand, is a promising option, given the current market scenario. Arlington is a rapidly growing city and owning an investment rental here can help you achieve a high ROI.
Here are some more reasons why you should rent out your Arlington home instead of selling it.
Renting Earns You Long-Term Profit
The real estate market in Arlington has seen significant growth in rental prices over the last year. The current median rental price for an apartment is $2,500, which has increased by 4% since 2019 and is likely to grow in the future. Plus, around 53% of households in Arlington are renter-occupied. The data proves that renting your home can assure growth and long-term profit in the future. In addition, if your property is in a popular neighborhood, you can charge a higher rent and
attract a larger pool of potential tenants, thus making long-term profits.
No Out-of-the-Pocket Expenses Required
As an Arlington homeowner, you need to manage additional expenses such as a mortgage, insurance, taxes, maintenance costs, management fees, vacancies, and advertising costs, along with your personal expenses. Renting allows you to manage these costs with the rental income without spending money from your own pocket.
Note that you may need to study your monthly rental income and expenses to plan your budget, or better,
hire a property manager who can help you plan it.
Leasing Maintains and Increases the Value of Your Arlington Investment
A well-maintained property with modern amenities never fails to attract quality tenants. When you rent the place, tenants take care of it and retain its value. You also ensure that it is well-kept at all times and add necessary upgrades to the unit from time to time, to keep it desirable.
Leasing allows you to
maintain and improve the property value, giving you an opportunity to earn high returns as today, renters are willing to pay more for good homes in a fast-growing market like Arlington.
Rental Tax Benefits
While selling your Arlington home, you need to pay tax on capital gains. If you
rent out the property, you save this capital gains tax and commission costs. Furthermore, your rental expenses can be included under tax write-offs as these are incurred for maintenance and management. Rental expenses include your cost of insurance, property management fees, accounting, home depreciation costs, maintenance, and utilities, in addition to your mortgage.
You Get A Passive Income Source
The most significant benefit of renting out your Arlington home is that it offers you a constant stream of passive income with minimum effort. Building a real estate portfolio can be a promising option for those who want to earn extra money and make multiple investments.
