Dean Aitken is a real estate agent and the team leader of the BestSAHomes real estate team, who sells over 100 homes a year. But Dean is also a landlord. Renters make up about 36% of the nation’s 122.8 million households. But who owns those rentals? You may be surprised to know that most landlords are individuals who own just a few properties. 14 Million rental homes in the US are owned by individuals vs only 3 Million owned by corporations. Even though most rental properties are owned by individuals, only a small percentage of individuals own a rental property. 6.7% of individuals reported owning a rental home. Like many other landlords, Dean has more than one rental property, owning several rental properties in and around San Antonio. As an investment, Dean feels rental property trumps other forms of investment. “All of our rental properties have grown in value every year. I can’t say that about stocks.”
And rents nation wide are going up. San Antonio’s average rent is $1,479 a month, that’s an increase of 4.7% over last year.
Individual landlords received $353.7 billion in rental income in last year. That is a lot, but only half of landlords reported a net income off their rental property. The reasons are many, but a big part of owning rental property is not to make income today, but to have an income producing asset in the future. Landlord’s offset other taxable income loses they incur from their rentals. In addition to the expenses to maintain the property, a landlord can also depreciate the home and deduct mortgage interest from their tax bill. And no other investment allows you to use other people’s money to buy it (mortgage from a bank), and other people’s money to pay it off (renters) while also appreciating in value.
The BestSAHomes Real Estate Team has a great deal of experience in finding and purchasing rental homes and are here to help you if you want to consider buying investment property of your own. We also have an in-depth analysis of the value of owning a rental property and are happy to share it with you. If you would like to learn more about why owning a rental property is one of the best ways to build wealth, call Dean Aitken at 210-718-2583.
Published on 2023-05-13 14:39:46
