If you have an investment property, letting out your property could be the smartest move that you make financially. Owning investment property is difficult enough, but it's a fantastic achievement. Deciding what to do with it can be tricky. Should you sell it and cash in, or lease it and fill the long term income? For many investors, leasing is the way to go. Whether you are someone who's looking for steady returns, or you want asset growth, becoming a landlord can offer you some serious advantages. If you've been sitting on the fence, here are 6 solid reasons to lease your investment property.
By Team Savant
Image: KaLisa Veer
You Want a Reliable Income Stream
One of the biggest perks of leasing your property is the regular rental income you could get. When managed well, your property can bring in consistent monthly payments which can be used to cover mortgage repayments, maintenance costs, or just to boost your personal cash flow. With a good letting agent or a management company, you can enjoy your passive income without needing to handle every detail yourself.
Benefiting from Long Term Capital Growth
Property tends to increase in value over time, especially in the sought after areas. When you lease rather than sell, you hold onto the asset itself and let it appreciate while still earning money from rent. When the time is right, you can sell at a much higher price or continue benefiting from ongoing income. Leasing allows you to have the best above worlds in this way with a regular income and long term profit.
You Can Keep Your Options Open
Leasing your investment property gives you some flexibility if you ever want to remortgage or access equity. Having a tenanted property can make that process easier with ongoing income to show.
You Can Get Professional Help
Some landlords worry about the difficult tenants or not knowing the legal insurance and outs of letting. The good news is that you don't have to do this by yourself. From property managers to tenant eviction specialists, there are always professionals who can handle any challenge that comes your way. Most tenancies tend to go smoothly, but knowing you have access to expert support means that you can feel more confident in leasing your property, even if you're new to the game.
Tax Efficient
Depending on your circumstances, renting out a property can come with a range of tax benefits. You might be able to claim deductions on expenses such as insurance, repairs, and letting fees. It's always a good idea to talk to an advisor here because this way you can understand exactly how it applies to you.
You're Providing a Service
Leasing your property doesn't just benefit you, but it meets a very real demand for rental homes. Whether it's young professionals, families or retirees, people are always looking for safe, quality places to live. When you maintain your property well and you offer a good rental experience, you'll always have some way of contributing to the community and securing your future at the same time.