I have had up to 11 Rental Homes at one time and currently have Rentals. I have personally rehabbed and resold over 56 homes.
I am a fabulous Investors Realtor, but you as a Seller & Buyer get to take advantage of my knowledge of what repairs will provide a good return and the best part I have a list of Resources that can fix and repair and replace and improve anything and everything related to a home inexpensively. I love this part of my Job!! I have been on radio and contributing editor to all the major networks, I have written 10 Real Estate Books which all include some of the many experiences.
Some home owners may consider renting out their property with the perception that they will receive a good income from doing so.
There are pros and cons of renting, just like there are in selling a home.
Renting your home does allow you to write off necessary repairs to the home but an owner can only take the full deduction if the repair does not significantly add value to the property. While you may like to add new, trendy lighting inside or outside the home so you can charge higher rent, that will not allow you to claim it as a “necessary repair.”
Necessary repairs include such things as replacing or repairing a leaky roof or replacing a faulty water heater, not property upgrades.
Improvements can be written off; however, an improvement that adds value or prolongs the life of the property is not fully deductible in a single tax year.
All Property Management explains that you divide the total value of the property by 27.5 years “to figure out the yearly deduction you can take.”
There are other deductions that a property owner can take, such as normal property upkeep, interest and advertising, but the pros and cons of renting should be weighed against those of selling the property.
If you want to reap the benefits of a seller’s market and avoid potential headaches of tenants who may damage the property or having to file eviction or pay for upkeep of the property down the road, then selling your property may be the path to take.