Why You Should Be a Landlord in 2023
2023 is shaping up to be a great year to consider renting out your home. There are several factors that make this an ideal time to make the decision to become a landlord and here are just a few of the reasons why 2023 is the best time to rent out your home:
Strong Demand for Rental Properties:
The housing market has been extremely competitive in recent years, with high demand for rental properties in many areas. This trend is expected to continue in 2023, which means there will be plenty of potential tenants looking for a place to live. The cost of home ownership is increasing, therefore people are going to be renting more than they will be buying.
Increasing Rental Prices:
As demand for rental properties continues to rise, so do rental prices. This is good news for landlords, as it means you can potentially charge more for your rental property and increase your income. Not only is demand increasing prices, but the sharp increase in property taxes, especially in places like Austin, TX and other booming cities, also means landlords need to cover these increased expenses. That's kind of a reason to rent AND a reason to not rent - property taxes aren't fun. Year-over-year rental price growth will rise from 5.8%, as of June 2022, to 8.4% as of May 2023, according to a Federal Reserve Bank of Dallas forecast that uses data from the federal government's consumer price index. - source below.
Previously Low Mortgage Rates:
Mortgage rates were at all-time lows, which means homeowners that purchased or refinanced their homes in the past couple of years are not going to want to sell and give up that super low-interest rate. The low-interest rates are assets themselves, HOLD ON TO THEM! Just so you know, rates are starting to drop a little again (as of 1/3/2023).
Tax Benefits:
Owning a rental property can also provide tax benefits, as you can deduct certain expenses related to the property on your tax return. This can help to offset some of the costs associated with being a landlord. It's barely January, but never too soon to begin thinking about tax write-offs.
Overall, 2023 is shaping up to be a great year to consider renting out your home. With strong demand for rental properties, increasing rental prices, holding low mortgage rates, and potential tax benefits, it's an ideal time to take the plunge and become a landlord.
This is part of why decided to launch our Wishlist Property Management company last year and to go full steam ahead in 2023. We've been managing for years but now want to offer these services around our Lake Norman area (Charlotte, Mooresville, Statesville, Denver NC, etc). Check out our page for more articles and tips for helping you launch your landlording journey! From AirBnbs to Long Term Rentals.