What Are the Benefits to Owning Rental Property in Chicago?
Chicago’s real estate market offers many unique opportunities to buy homes to live in and also to buy properties to lease to others. Owning and managing your own rental property can be a great long term investment. Here are a few other benefits to building your property portfolio:
The Market is Booming
According the U.S. Census Bureau, over half of the city’s residents rent their homes. In fact, an Urban Institute study predicts that by 2030 the U.S. will see five new renters for every three new homeowners. This unprecedented growth towards renting leads to lower rental inventory and higher demand for units. The result is higher rental pricing, making it a great time to be a landlord.
Chicago has seen a boom in rental construction and conversion, making it the ideal time for new investors to connect with a trusted real estate professional and weigh their options. Rentals don’t always have to be multi-unit buildings either; single-family homes appeal to renters looking to get more square footage for their money.
Technology Makes Leasing Easier
Advances in technology have made managing an investment property easier than ever. In the past, people would shy away from owning rental properties because of the hassle of leasing and managing their property as a part-time landlord. Online tools and software have simplified the process, automating many of the steps that once caused issues for many investor landlords.
Consider the Write Offs
Most people are unaware of the benefits of owning an investment property can have at tax time. As a landlord, you’ll be able to deduct expenses associated with the upkeep of your property, wages for independent contractors like carpenters or landscapers, utilities and taxes, as well as necessary (and reasonable) repairs to your investment.
Diversify and Appreciate!
Investing in rental property is an opportunity to diversify your assets. As any investor knows, it is smart to invest in numerous markets. Real estate is relatively safe market in the long haul; the market is easily researched, allowing you to make an informed decision, and is less volatile than the stock market.
Property owners experience a slow and steady equity gain through paying down their principal balance on their mortgage each month. Over the years, they might also see a healthy increase in their property’s value, which gives them additional equity should they want to tap into it or sell. Rental properties are also a great platform to produce income. Considered passive income, rental properties generate money with less work, and is an ideal way to introduce additional revenue post-retirement.
Investing in rental property is a huge step and comes with both benefits and challenges. Before you start the process, reach out to ProcTorr Investments who can help you navigate the process.