Owning a home offers stability and an opportunity to build a solid financial foundation for your future.
It also gives you a place to live.
As an active duty member of the military, your career doesn’t always offer the same sense of stability. You can find yourself on the move, anytime those PCS orders show up or you’re called to serve elsewhere.
What does that mean for your home? If you own a home in San Diego, it can be difficult to decide what to do with it when you know you’re moving out of the area.
There are options. You can sell the property and move on, or you can hold onto it. If you do hold onto it, who will live in it? Do you have someone in mind who can take care of it, or will you need to lease it out to tenants?
If you’re a San Diego homeowner who needs to move because their military service calls them elsewhere, we’d like to help you hold onto your home. It’s a valuable asset, and its worth will only increase. You can enjoy the equity you’re earning while good tenants continue to pay down your mortgage and contribute to expenses.
And, if you’re planning (or hoping) to come back to San Diego one day, you definitely want to keep this home. With property values rising and the market so competitive, it may be difficult to re-enter the San Diego real estate market in a couple of years. We don’t know where things will stand, and you’ll likely be happy you have a property that’s waiting for you.
Here’s why we think you should rent out your home, and how we help active duty military homeowners just like you.
Earn Rental Income with Your San Diego Property
The rental market in San Diego is strong. Just like the sales market, there’s a high demand and a tight inventory. More and more tenants are looking for well-maintained, attractive homes. The increase in tenants is due in part to the military presence here but also because we’re always growing economically. San Diego is America’s Finest City for a reason. Students, professionals, and other members of the military are all looking for high-quality housing. There’s never a shortage of tenants.
Rents are also rising, which creates a good opportunity for you to earn some real money every month. High rents and a loaded pool of qualified tenants leads to a positive and profitable rental experience for you. We do not expect rents to begin dropping anytime soon. All over the country, they’re climbing higher, and in San Diego, they were already on the high end to begin with. It’s a great place to own rental property.
Having a tenant move into your property leads to regular rental income, and that can go towards paying down the mortgage on your investment. You’ll increase the return you earn on your investment, and you’ll have some consistent cash flow coming in.
When you have good tenants in place, you’ll be able to earn money on your property. If you sell your home right now, you’ll likely earn some money, but it won’t grow the way your asset will grow in value.
Enjoy Tax Breaks and Property Appreciation
As you move out of San Diego, you might already be thinking about coming back. Your home will be here waiting. The eviction laws have changed in California, and it’s more difficult to remove tenants from your home. But, your property is exempt from certain requirements if it’s a single-family home. And, moving back into your own residence is always considered a just cause for eviction.
Even if your military service continues to take you elsewhere and you decide you don’t want to come back to southern California, holding onto this investment property still makes sense. A rental property in San Diego is always a valuable investment to have. Your property will be worth more as the years pass by.
You should also consider taxes. Selling may require you to pay capital gains taxes. Renting it out, however, will provide you some tax relief because you’ll be able to deduct:
Property management and other professional fees
There are a lot of benefits to keeping your property instead of selling it when you get orders to move out of San Diego. We know the sales market is hot, and you can probably sell for a great price. But, there are advantages to holding onto that asset as well.
Work with Professional San Diego Property Management
Maybe you’re not thrilled with the idea of becoming a landlord. After all, it’s not like you’ll be right here to respond to any issue that comes up. You might be worried about collecting rent, making repairs, and finding a tenant who doesn’t destroy your home.
There’s an easy way to access the peace of mind you need. Professional San Diego property managers are able to protect your home and deliver a successful rental experience for you and the tenants who end up living in your home. A good 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 property manager will collect rent from them and deliver it to you. 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.
If you’re thinking about the long term and your plans after this particular military station, we think you’ll do well renting out your home. And, we can help. We love working with homeowners who are also active duty members of the military. We love working with military tenants, too.
Contact us at North County Property Group, and we’ll take some of the stress out of your upcoming move.