Los Angeles is one of the best places in the world to live, but if you have the opportunity to move on and try something else – congratulations.
Go do the thing, whether it’s a new job or a new school, or a decision to buy an RV, and wander at random. Maybe you’re retiring to a low-maintenance condo in a 55+ community. Whatever your reasons for hightailing it out of Los Angeles, something to think about while you’re packing is: What will become of my property?
You can sell. Or, you can rent the home out. This provides you with some extra flexibility and even a little income. Today, we’re talking about why you might want to rent or sell your property when you’re leaving LA.
Selling Your Los Angeles Home When the Market is Strong
When the sales market is strong and home prices are in your favor, selling can be the best bet for owners who want to earn money and walk away from the emotions and responsibilities that come with owning a home from afar. Maybe you need the money you’ll make on a sale to send a child to college or put a down payment on a new home. There might be other investment opportunities you’d like to explore.
Whatever your reasons for needing an immediate infusion of cash, selling your property can deliver the money you need right now. If you have enough equity in the home and you know the sales market will deliver the price you want, selling is an easy way to move on.
Reasons for Renting Your Los Angeles Home
There are many financial benefits to renting out your property. You’ll be able to earn a reliable rental income every month and your asset will continue to appreciate in value, delivering a larger payoff when you finally sell in a year or five years, or 10 years.
The rental market is complicated and always shifting in Los Angeles. But, there’s a high demand for well-maintained homes and a well-qualified and reliable pool of tenants. Rental prices are rising and stable, even with the new statewide rent control laws and the ongoing Covid-19 pandemic, and there are plenty of great renters willing to pay for a nice property. When you can attract and retain great tenants, they will help you pay off your mortgage while your property’s value continues to rise.
Property Management Los Angeles: Rental Tax Benefits
There may be a capital gains tax on the sale of your home, whereas, with rental property, you’re able to take a lot of deductions. You can deduct the home’s depreciation, which is pretty generous by IRS standards, and you can also deduct any expenses associated with the home, such as maintenance and professional services like accounting, legal fees, or property management. These write-offs help to reduce your overall tax liability.
Work with Professional LA Property Management
Selling is better for you if you’re emotionally attached to your property and you don’t think you’ll be able to treat it like a business.
But, you can avoid that risk when you rent it out by hiring professional Los Angeles property managers. We have the knowledge and experience to take care of all the details involved in leasing, managing, and maintaining your home. We’ll collect rent, find a great tenant, enforce the terms of the lease, and respond to any routine or emergency repair issues.
This makes sense for all owners who are relocating but want to rent out their homes. The laws have changed dramatically, and there’s a lot of risks involved in renting a property to tenants. Good property management is simply more necessary than ever.
Contact us at EGL Properties when you’re wondering if renting out your Los Angeles home is a good idea for you.