If you’re reading this, then it’s probably fair to say that you’ve considered renting out your property at one time or another. Given the many advantages that come with being a landlord, we don’t blame you one bit. Take a look at some of the top reasons to get started with a rental property:
- Passive Income. With only minor upkeep and routine maintenance, you can have a reliable source of passive income. Monthly rental collection is a great way to achieve greater financial security.
- Tax Deductions. Tax breaks are a considerable bonus that comes with rental property ownership. According to the IRS, you are legally permitted to deduct the “ordinary and necessary expenses for managing, conserving and maintaining your rental property.”
- Portfolio Diversification. Traditional investment portfolios include the standard stocks and bonds. But investing in real estate allows you to diversify your portfolio and spread your wealth across more asset classes.
With all these benefits waiting to be claimed, what are you waiting for? For many people, it’s that first step that presents the greatest challenge: How do you know if you can legally rent your property? How does one become a landlord in the first place? If this sounds like you, continue reading below as we explore the answers to these questions.
First, check your local landlord-tenant laws, as those often dictate who is eligible to rent out their space. If you live in a suburban neighborhood with an established HOA, then they may have additional regulations in place for residents. Mortgage lenders and insurance providers also sometimes place restrictions on who can occupy your property. Reread the fine print of your agreement or contact the agency directly to find out for certain.
Once you’ve confirmed that your home is eligible to be used as a rental space and you’ve secured a new space for yourself, you’ll need to acquire the proper permits and licenses. North Carolina law states that title owners need not have a broker license in order to lease their property. That being said, you should double-check with your local government to verify that everything is done according to the current standards and regulations.
But, maybe you’re still not ready to take on the responsibilities of a full-time landlord. The possibility of delegating those responsibilities to a property management agency is quite appealing, especially for those who are brand new to the industry. Talley Properties would be glad to assist you with everything from property acquisition to daily operation, just as we have with many satisfied clients over our 40-year history. Get in touch with us today to inquire further!