Perhaps the biggest benefit to owning rental property is that it’s a passive income source. This means that it is recurring income that requires relatively little effort to maintain. It can be an attractive option for people looking to make some money on the side, or even as additional financial security during retirement. Additionally, rental income may be taxed differently than employment income
Tax Write-Offs for Income Property
Rental property owners are entitled to generous tax deductions. Owners can write-off insurance, maintenance repairs, travel expenses, any legal and property management fee, and even property taxes.
On top of all of these deductions, the government also allows depreciation of the purchase price of your property based on a set depreciation schedule even if your property is actually appreciating in value. Discuss these and other write-offs with your tax consultant.
Owning rental property allows you to diversify your portfolio, which can serve as an added layer of protection against risk.
Independent of health
Building equity through rentals can be independent of age, sickness, or circumstance. It can provide income during retirement or if you are physically unable to work.
How many investments can be insured? Ask about our insurance program for investors.
Discuss with an estate planning attorney the benefits real estate offers for generational wealth transfer. We work with extremely knowledgeable attorneys and would gladly have you speak with them if desired.
No Shortage of Renters
The number of renters (your customer) in today’s market is increasing in the U.S. Especially in Florida where the population is expected to continue growing for at least the next 10 years.