Posted Wednesday, October 14, 2020 by Corcoran Pacific
If you’ve had an Oahu vacation home that’s
spent more time vacant than occupied, you may be thinking
about selling it. That’s one option, but it’s
not the only option. You can also rent it out, which would
allow you to earn some money on the property while holding
onto the asset in case you get to a point later in life
where you’ll be enjoying your vacation home a little
bit more.
At Elite Pacific Properties, we work with out-of-state
landlords all the time. Whether it’s providing leasing
and management services or sharing our expertise on local
investment opportunities and market trends, we’re able
to work closely with our clients no matter where in the
world they happen to be located.
If you’re wondering whether to rent or sell your Oahu
property,
contact us
at Elite Pacific Properties. We can talk about your specific
needs in greater detail.
Financial Reasons to Sell Your Oahu Property
When the sales market is strong and home prices are in your
favor, selling can be an excellent way to earn money and
walk away from the responsibilities that come with owning a
property that you’re so far away from. 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 a quick and predictable
sum of money, selling your property can deliver that. 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.
Renting Your Oahu Home for Rental Income and Long Term
Growth
If you don’t need a quick influx of cash, however, we
always recommend owners consider holding onto their
properties.
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 always changing in Oahu. We have
tenants looking for long term homes and we also have
tourists and vacationers looking for short term properties.
There’s always a high demand for
well-maintained homes, and the island does provide a well-qualified and reliable
pool of tenants. Rental prices are high and stable, and when
you can attract and retain great tenants, they will help you
pay off your mortgage while your property’s value
continues to rise.
Renting Out Your Home Increases 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.
Renting with Professional Oahu 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.
If you want to rent out the property and you’re out
of the area, your best chance at success is to hire a
professional Oahu property management company. This makes sense for you when you decide to rent instead
of sell.
If you’re still trying to decide whether you want to
rent or sell your vacant Oahu home, don’t hesitate to
contact our team
at Elite Pacific Properties.
