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How to maximize your income by renting your vacant homes
September 27th, 2021 |
One of the greatest incentives for renting a property is to be able to obtain economic income.
Renting a home that you have empty, and that you do not occupy continuously, is an excellent way to generate money so that you can get some extra income that can come in handy to increase your wealth and well-being, thanks to the economic stability to which You can access with the rental of a property that you do not have occupied.
Through a rental we will receive a monthly income that will help us in our economy. A way to increase your passive income and be able to increase your liquidity and equity.
Today we are going to see how you can make the most of your income from renting your home. In an easy, simple and safe way you can turn that empty home, which generates a series of expenses, into a constant and reliable source of income.
The collection of the monthly rent
Undoubtedly, the main asset for our economy when renting a home we own will be the monthly collection of rent. The tenants are obliged to make this payment and failure to do so is grounds for termination of the rental agreement.
The monthly income will provide us with a constant inflow of money that will allow us to increase our income in a stable way to help us improve our economy, guaranteeing us a constant flow of money to count on.
It is important that you find a good tenant who gives you confidence and peace of mind when collecting the monthly rent, so that your experience as a tenant is as pleasant as possible, as well as productive.
Benefits of renting an unoccupied home
The constant maintenance of a home by its occupants is undoubtedly one of the greatest advantages that we can obtain when renting our empty home.
If you have the rented house, your tenants while they live in it will carry out continuous maintenance to the property, fixing damages, cleaning the house, giving use to the different elements. This will mean an economic benefit and the conservation of the home, and we will save ourselves from carrying out all the maintenance.
One of the main benefits of having a property occupied is that of security. In addition to feeling safer with tenants occupying the house, we will save money on alarms and other security measures that we should take by having our house empty so that it is not the main target of thieves and deterring criminals.
This is important and you will ensure that, having your home rented, in addition to the necessary economic benefits, provides you with peace of mind and emotional well-being, knowing that your home, your property, your investment feel safer.
Tax benefits and savings when renting
When you rent a home that you have empty, you will get a series of tax benefits and reductions when making the income statement.
By presenting the data of our rented home and our tenant, we can achieve a 60% reduction on the net return. For this, the rented property must be the tenant’s habitual residence.
We can also obtain a deduction on the interest generated on the mortgage of the home that is the object of the rental contract.
Taxes derived from the rented home such as IBI, garbage collection fees or community receipts, among others, will be deductible in our income statement.
We can also amortize real estate, up to 3%, and personal property, up to 10% in this case, of our home if we have it rented.
What if we want to sell our home?
As we can see, it is very useful to rent our empty homes to have a constant and secure source of income. We can go from having a property that supposes a significant expense burden to maintain it, to periodically generating income with which to increase our economy.
If at any time we want to get rid of the property and find a buyer, we can terminate the rental contract in order to carry out the economic transaction that satisfies us. And while, having it rented, we manage to sell the house we will be able to generate an important series of income with peace of mind.
By renting our home we will obtain a significant annual return, between eight and ten percent according to studies carried out by the Bank of Spain.
We can help you rent your home and achieve your goals
Thanks to all these concessions you will be able to maximize your income with the rental of your home. All these tasks require confusing and complicated paperwork and attention. For all this it is always convenient that you let yourself be advised and helped by professionals.
In Homewatch you will find all the necessary services when renting your home and do it all in the fastest and easiest way. In this way, you will only have to worry about calling us and starting to collect your rent, in order to start benefiting from all the advantages of renting your home.
We can help you rent your home and start generating all these benefits, you just have to decide to take the step and put your property up for rent.
We can also help you with the maintenance of it and with all the steps you require for your property.
Article by Vanesa Mena, Sep 27, 2021