While owning multifamily rentals like apartments, duplexes or townhouses seems like a challenge to many, wise investors know that this is an ideal way to handle real estate investments. While this course of action presents challenges just like any other investment out there, it has several key benefits which make it a truly unmatched experience for those who know how to manage the property properly. Here are just a few of the reasons why you should make renting a multifamily unit part of your plans for the future:
Having your units united under one roof introduces the unique benefit of easy management. While separate housing units require several different managers to deal with the tenants, collect rent and see to repairs, a multifamily building requires only one manager to handle all of this business. This means you’ll be saving both time and money that you can focus elsewhere in order to increase your property’s worth and draw in new tenants.
Appreciating the value of your unit should always be your top priority, as it means you’re able to bring in more money each and every month and that your investment can stand the test of time. Owning multifamily rentals helps you make the most of your property appreciation by making it easier to achieve. To increase your unit’s value, you need to do certain things and introduce upgrades. Doing this in separate home can be difficult and resource-consuming, and only impacts a single property, but cleaning up and improving your multifamily unit impacts the entire community and gives it a significant boost.
While rent alone can help you live comfortable, introducing certain amenities into your multifamily property can increase your cash flow even further. For example, a coin-operated laundry room can scrape in hundreds of extra dollars each month depending on how many tenants you have, and helps you make the most of the space you’ve invested in.
By providing housing to families who might not otherwise have a place to live, you’re marking yourself as a generous and upstanding member of your community. As such, you can expect certain tax breaks that come along with the investment. As you run your business, you can claim business expenses on depreciated items and property, overall expenses and much more. Seeking the help of a CPA during tax season is always advisable.
Owning multifamily rentals has a great deal of benefits which no one should overlook. Speaking with an investing professional can help you understand more about the specifics of the process and decide whether or not this is the right step for you.