You have a rental home and you enjoy getting income out of it. Why invest in remodeling efforts when you don't stay there? You can actually benefit in many ways by having this type of work done on your rental home. Here are reasons why you should consider home remodeling for your rental.
You can make money
When you invest in a remodel, you can actually make money in doing so. How? By increasing the curb appeal and allure of your rental home, you are doing something else: adding onto the perceived rental value of the home. What does this mean for you? You could potentially raise your rental rates.
When a person sees how nice your home is compared to other rentals on the market, they may be willing to pay more for your home over others of the same square footage and bedroom size. This means that your initial investment in a home improvement project can continue to come back to you in increased rental income over time.
You can write off the remodeling project
You'll want to speak to your tax accountant about how much of your rental home remodeling project you can write off, but since the rental is considered income and your landlord position considered your job, most improvements you make on the property should be considered business-related. This means when it comes time to file your taxes, you can write off a large portion of your remodeling expenses, which is a good thing because this can help you expand your budget on how much remodeling you can do.
You can personally benefit in the future
Is your rental property going to remain a rental forever? If not, then you want to put money into the rental home to boost its rental potential now and then you can benefit from the remodeling later should you choose to sell the home or move into the property yourself. It's up to you on what you do with the rental home, but keep in mind your personal tastes for the kitchen and other parts of the remodeling process in the event you move back into the home in the future.
There are many reasons to remodel your rental home. When you have this project done, you can feel great about your services and know that you are doing what you can to keep the value of your property high so you can benefit the most from your investment.
