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What Should I Do if My House Won’t Sell?

Damian Bennett • September 3, 2024

Ever wondered why your house isn’t selling in today’s unpredictable market? Factors like fluctuating interest rates, inflation, and changing demographics can all impact your home sale. 


But what if there was an alternative that not only solves this problem but could also work to your advantage?


Instead of struggling to sell, consider renting your property to a quality tenant. Renting offers numerous benefits, including a steady passive income, tax advantages, and increased equity. 


In this guide, provided by First & Main Property Management, we’ll explore the advantages of renting out your home and explain why hiring a property manager could be the key to maximizing your investment.



Keep reading to learn more!


Benefits of Renting out Your Home

Keep All Options Open 


Renting out your property offers a range of benefits, it allows you to keep all your options open. 


You can wait for a seller’s market to maximize your profits when you decide to sell, or you can choose to move back in at any time.


The rental income you earn can support various financial goals, from bolstering your emergency fund and retirement savings to paying down debt, supplementing your income, or funding your vacations and personal interests.


Earn Potential Passive Monthly Income

Passive income is perhaps the single largest motivator for rental investments.

Money inside a wallet.

Once you invest in the right property and find the right tenant, you could set yourself up to earn a passive income for many months to come. This can be a great option, especially if you’re looking to make extra money aside from your main income. 



In addition to earning a passive income, you may be able to enjoy rising property appreciation rates and reduced tax bills. 


Build Equity With Relatively Little Output

Equity is the difference between your property’s value and any debts owed on it. You can build equity in several ways when renting out a property. 


For one, you can build it by ensuring the cash flow is positive. A positive cash flow means that the rent exceeds the expenses. You can then use the cash flow to pay down the mortgage principal, thereby increasing your equity in the property. 


Over time, the market value of the property may increase due to multiple factors, such as rising real estate prices, economic growth, and property improvements.

In Napa, California, for instance, home prices were up 18.4% in June 2024 compared to last year according to Redfin.Com. 


Also, as a landlord, you may be able to qualify for certain tax deductions. And the lower your taxable income, the more equity you can build in the property.


Maximize the Tax Deductions

Landlords can claim certain deductions to reduce the taxable rental income such as mortgage interest, property taxes, maintenance and repairs, utilities, and depreciation. 


Aside from property expenses, you could also make certain deductions on the following:


  • Costs associated with advertising vacancies. 
  • The cost of hiring a property manager to manage the property on your behalf. 
  • Your traveling expenses, when traveling to collect rent, inspect the property, or handle other duties. 
  • Costs associated with hiring professional services, such as accounting fees for managing rental income or legal fees for drafting leases.


Benefits of Hiring a Property Manager

Renting out a property offers many advantages, as we've discussed. However, being a landlord also presents its own set of challenges. You might face difficulties in finding the right tenant, effectively advertising vacancies, or staying compliant with legal requirements.


This is where a property manager can make a significant difference. A skilled property manager can take on these challenges for you, ensuring that you attract ideal tenants, set optimal rental rates, and maintain the property to the highest standards. 



With their expertise, you can maximize your rental income and enjoy the benefits of property investment without the hassle.


Rental Property Marketing

Marketing a rental property involves more than just placing “For Rent” signs or listing it in local newspapers. 



A property manager can significantly enhance your property's visibility by writing a good property listing and promoting it across the most effective platforms, ensuring it reaches the right audience and is filled quickly.


Tenant Screening

A good property manager can help you conduct a thorough tenant screening process to find high-quality tenants for your rental.


The screening process usually entails checking the tenant's income level, employment status, creditworthiness, and rental background. 



As a result, you can rest assured that you’ll rent to a reliable and trustworthy tenant who pays rent on time, reports issues on time, cares for the unit, and stays for the long term.

Rental Maintenance

In addition to securing a reliable tenant for your property, a property manager will perform regular upkeep and respond promptly to emergency repairs.


They are well-versed in the warranty of habitability and will ensure your property adheres to all local safety and health codes, providing peace of mind that everything is up to standard.

Legal Compliance

Legal compliance is important when it comes to renting out a property. It requires that the landlord comply with the relevant landlord-tenant laws.


For instance, the fair housing laws, habitability rules, landlord entry rules, and security deposit laws. Failure to comply with any of these laws can lead to severe financial and legal repercussions. 



Luckily for you, a property manager can help you in this regard as well.


Conclusion

If you’re finding it challenging to sell your home, renting it out can be a smart alternative. This approach allows you to enjoy the benefits of rental income while keeping the option to sell open for the future.


For expert assistance in renting out your Napa property, turn to First & Main Property Management. 



We offer tailored and comprehensive property management services to help you maximize the potential of your rental. Contact us today to discover how we can assist you!

Tips to Find Great Tenants For Your Rental Property

By Damian Bennett • February 4, 2025
Discover essential tips for selecting reliable tenants and ensuring a smooth rental experience. From screening to communication, learn how to find tenants who’ll treat your property with care.

What to Include in a Rental Agreement

By Damian Bennett • February 4, 2025
Ensure your rental agreement protects your property and rights. Learn the key clauses every landlord should include to prevent disputes and maintain smooth tenant relationships.

6 Tips to Sell Your Home Fast

By Damian Bennett • December 31, 2024
Are you a landlord looking to sell your property quickly and efficiently? Whether you're planning to upgrade your portfolio or simply looking to move on from your current investment, achieving a swift sale is crucial. This guide from First & Main Property Management will walk you through six pivotal tips designed to attract buyers, secure offers, and close deals more rapidly than you might expect. From smart pricing strategies to insightful staging techniques, these tips are tailored specifically for landlords to streamline the selling process. Keep reading to learn more! Key Strategies for Selling Your Home Fast Let's explore effective strategies that will help you sell your home quickly, from marketing techniques to setting the right price. These key tips are tailored to ensure your property stands out in the market. Market Your Home Effectively Effective marketing is pivotal in reducing the time your property remains on the market. High-quality photography and virtual tours help showcase your property at its best, highlighting key selling points such as modern amenities, spacious layouts, or scenic views. An engaging, well-crafted property description can captivate potential buyers, emphasizing features that meet current market trends and buyer preferences. Utilizing a diverse range of platforms, from major online real estate portals to social media and local community boards, ensures broad exposure. Regular open houses also provide a real feel of the property, enabling buyers to connect emotionally and visualize their life in the new home. Set the Right Price  The initial listing price of your home significantly influences buyer interest.

How to Grow Your Rental Portfolio

By Damian Bennett • December 31, 2024
Are you a landlord looking to maximize your investment potential by expanding your rental portfolio? This guide from First & Main Property Management will help you navigate the path to success.

How to Increase Your Income Without Raising Rent

By Damian Bennett • December 4, 2024
Are you a landlord looking to increase your income without raising rent? At First & Main Property Management, we understand that simply raising rental rates isn't always the best solution. In fact, raising rent can often lead to tenant dissatisfaction, increased turnover, and vacancies—interrupting your cash flow. When rent goes up, tenants are faced with higher living costs, which may push them to seek more affordable options elsewhere. Rather than relying on rent increases, there are smarter, more sustainable ways to boost your income. By exploring alternative revenue streams, you can grow your profits while keeping tenants happy and minimizing vacancies. Here are some effective strategies to increase your income without adjusting the rent. Charge a Late Rent Penalty Your lease agreement clearly outlines the due date for rent, and it’s important to enforce this to ensure timely payments. On-time rent payments are essential for meeting your financial obligations, such as covering taxes, mortgage, maintenance costs, and even funding future renovations. Charging a late rent fee is a fair way to encourage timely payments and maintain consistency. It also helps ensure that tenants who pay on time aren’t unfairly burdened by those who delay their payments. A late fee can act as a deterrent to late payments while generating some additional income to offset the inconvenience. Before implementing a late fee, be sure to review your state’s laws to determine if grace periods are required and whether there are any caps on the amount you can charge. A common practice is to charge a fee of 5% or less of the rent amount, but always double-check local regulations to ensure your fee is compliant with both state and local laws.

Top Tenant Complaints and How to Solve Them

By Damian Bennett • November 26, 2024
Are you a landlord struggling with tenant complaints? At First & Main Property Management, we understand that no matter how well you manage your property, complaints are inevitable.

Why do Successful Real Estate Investors Partner with Property Management Companies?

By Damian Bennett • October 22, 2024
Struggling to manage your rental properties and meet resident demands? Discover how partnering with property management companies can drive sustainable success in real estate investing with First & Main Property Management.

How To Calculate The ROI On A Property Investment

By Damian Bennett • October 22, 2024
Are you confident you're getting the most out of your property investments? For landlords, understanding how to calculate the Return on Investment (ROI) is critical for assessing the true profitability of any property. It’s not just about collecting rent; it’s about making informed decisions that can maximize your investment's long-term value. Whether you're considering a new property purchase or evaluating your existing portfolio, accurately calculating ROI helps ensure you're not wasting potential profits. In this article, First & Main Property Management will break down the key steps to follow when calculating ROI, so you can better strategize and optimize your investments. Keep reading to learn more!

How to Avoid Water Damage in Your Rental Property

By Damian Bennett • September 24, 2024
Are you a landlord looking to protect your investment? Household leaks may seem minor, but they can lead to significant damage to floors, furniture, walls, and carpets. Repair costs can quickly spiral, with home insurance claims often exceeding $10,000. That’s why it’s crucial for property owners to stay vigilant and proactive in monitoring their rental units to prevent water damage. Common culprits of these issues include broken pipes, malfunctioning appliances, and adverse weather conditions. To help you safeguard your property, First & Main Property Management has created this comprehensive guide to address and prevent water damage effectively. Keep reading to learn more!

How to Boost Your Rental Property’s Curb Appeal

By Damian Bennett • September 24, 2024
Are you a landlord looking to attract more tenants? While it’s tempting to pour your efforts into your rental unit’s interiors, don’t overlook the importance of enhancing the exterior. A property’s curb appeal serves as a powerful marketing tool, reducing vacancies and increasing interest. First & Main Property Management has created this guide to help you understand how vital exterior charm is in drawing potential renters. Read on to discover why curb appeal matters and explore effective strategies to elevate your rental’s exterior!
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