Many homeowners invest in a second property and utilize it as a vacation home. While this space may come in handy during holidays and extensive days off from school with the kids, it’s likely unused for a large portion of the year. You can profit off your second home by becoming a landlord and renting it out. Below are a few benefits of turning your vacation space into a rental home. 

3 Benefits of Renting Your Second Home

1. Deduct Taxes & Expenses

As long as you rent your home more than 14 days per year, the mortgage’s interest and the property taxes are deductible from your gross income. You can also deduct insurance you pay on the property, not to mention depreciation, the cost of repairs, and any operating expenses. For depreciation, the IRS recognizes a useful life for rental homes of 27.5 years.

2. Positive Cash Flow

If you have owned your rental home for several years, the income you could earn from it likely exceeds your mortgage payment. This creates a positive cash flow that you can direct toward other expenses, such as the mortgage or bills of your main home.

3. Real Estate Appreciation

Real estate prices tend to increase over time, so by turning your old house into a rental home, you can enjoy the real estate appreciation on both your permanent living space and the rental home. Real estate is one of the rare assets that you can purchase and sell later for more money than you initially paid for it.

If you want to rent your second property and you’re seeking someone to manage your rental home, the team at Realty Roundup in Elk Grove, CA, will help They’ve served clients in Stockton and Galt, CA, for more than 30 years. They manage more than 2,000 properties, including duplexes, triplexes, apartment buildings, and small commercial buildings. Visit their website to browse their property management services or call (916) 685-6601 to discuss listing your rental home.