Reasons to Rent Rather than Sell:
- The residential market is always changing. In many cases it is wise to forgo selling your home and instead rent it. This especially makes sense when you can rent your home for more money than the cost of the mortgage payments and other expenses. Additional income is never a bad thing.
Receive Tax Deductions
- By holding on to and renting your current property and/or acquiring new rental property, you may be able to depreciate a portion of the amount you paid for the house in your taxes. Along with this, you may be able to deduct other expenses, such as property mortgage interest, taxes, repairs, and community association fees.
Reasons for a Residential Lease
Protects Your Property
- A lease limits your risk as a landlord and holds your tenants to their end of the bargain. If your tenants become careless and damage your rental property, the residential lease helps to ensure your recovery.
Establishes Your Rights and Responsibilities
- A residential lease establishes the rights and responsibilities of the tenant and you as the landlord. Below are some examples:
- Tenant Rights – Whether smoking or pets are allowed.
- Tenant Responsibilities - When rent is due, whether renter’s insurance is required, and how much money, if any, is added to late payments.
- Landlord Rights – How much money is required for the deposit and how much is refundable, when you can evict the tenant, and when you can enter the property.
- Landlord Obligations – List of appliances, fixtures, plumbing, etc. that require the landlord to fix when broken.
- Without a residential lease, the ultimate risks associated with rental property fall on landlords because, after all, it’s their investment at stake.