Property Management Blog

Job Relocation - Why You Should Rent Out Your Indianapolis Single-Family Home

System - Friday, April 30, 2021

Job Relocation - Why You Should Rent Out Your Indianapolis Single-Family Home

When you move out of Indianapolis to start a new job or you get transferred elsewhere to do the same job, one of the questions you may be asking yourself is - what about my house?

Selling is one option, but are you sure you’ll get the price you want? And, do you want to let go of that asset? Single-family homes do an excellent job of increasing in value. Many Indianapolis homeowners decide to hold onto their homes. If your plans include returning to Indianapolis, the home will be waiting for you. Even if you never plan to come back - some simple math will show you that renting out a property you own can be an excellent way to establish and build some real wealth.

Here’s why renting out the property makes sense while you’re out of town.

Remaining in the Indianapolis Real Estate Market

The Indianapolis real estate market is getting more competitive than it’s ever been. Prices are rising every year, which means home values are rising. Even during difficult economic times, low interest rates and high demand have helped the market perform above expectations. By renting out your home when you’re relocating, you’re able to keep a valuable asset that’s only going to grow more valuable.

We work with a lot of owners who leave the area for a new job, for school, or for another opportunity or responsibility. If you want to return to Indianapolis in a few years, you might find that you’re close to being priced out of the real estate market. It could require a lot more capital to buy a home here later on. But, when you rent out the home you already own, that property investment stays with you. Then, you’ll have options. You can move back into it or sell it when it’s worth more than it is now.

Renting Out Your Indianapolis Home and Tax Benefits

If you sell your home before you relocate, you’ll likely have to pay taxes on whatever you earn. If you rent the property out, however, you can actually reduce your tax liability by taking advantage of deductions that are only available to income-producing residential properties. You can: Deduct professional expenses like property management and accounting Deduct for depreciation Deduct mortgage interest Deduct the cost of maintaining your property

Always talk to a CPA or an accountant so you can be sure you’re eligible for these tax savings.

You don’t have to be a Landlord: Indianapolis Property Management

If you’ve never been a landlord before, it’s natural that you’ll hesitate before deciding to rent out your property. How will you find a tenant and collect rent and take care of maintenance when you’re living so far away?

There’s an easy solution. You don’t have to be a full-time landlord because local property managers are able to protect your home and deliver peace of mind. A professional management company will help you prepare the property for the rental market, advertise it to potential renters, and screen applicants thoroughly to ensure you’re placing someone who will pay rent on time and take care of your home.

Once a tenant is placed, your Indianapolis property manager will collect rent and deposit those funds into your account electronically. There will be regular maintenance performed, emergencies responded to, and a careful tracking of income and expenses. You’ll be able to view all statements, invoices, inspection reports, and tenant communications.

You don’t have to be a Landlord: Indianapolis Property ManagementThis is a much better way to rent out your home.

As you manage all the details of your new work assignment, we can help you handle this end of things; specifically the leasing and management of your home. If you’d like to talk about our Indianapolis property management services, please contact us at Red Door Property Management.