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3 Reasons to Lease Your Home in Malibu

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Malibu CA beachfront home

Malibu is one of the most desired beach towns of California, primarily because of its location. Since the past few years, a large number of Hollywood celebrities have moved to this town, increasing the overall worth of the real estate in the area. Many prospective home buyers aspiring to live in the town but can’t afford to do so are looking for homes for lease in Malibu.

If you own a property in this beautiful city but are not yet sure about leasing it, continue reading this article to find out the top 3 reasons why you should lease your home in Malibu.

1. There Is Cash Flow

Cash flow can be understood as the difference between the rent cost and the operating expenses of your rental property. Anyone with even a basic understanding of real estate can tell you that a rental property is a great way of generating cash flows. Even though the low rent price may give an initial impression, you’re not getting enough return on investment. However, in the long run, it’s more profitable than you expected.

To generate the maximum cash flow, you must carry out an analysis of whether your home can make a good rental property. A few things to keep in mind are:

  • Repair and replacement costs
  • Property management and rental process fee
  • Unforeseen delinquent instances such as when the tenants decide not to pay the rent
  • Vacancy allowance and the duration for which you can afford to keep your home vacant
  • Mortgage payments

2. Property Value Appreciates

The appreciation of property value refers to the increase in real estate prices over time. While appreciation is not guaranteed for most properties, leasing home in Malibu increases your chances of appreciated property value because of its prime location. Generally, appreciation depends on local economic factors such as the condition of the economy, population growth, property demand, etc.

In Malibu, the appreciation rates have been fairly competitive, which means that the longer your property is occupied, the greater will be the increase in its value. This happens because, with time, your equity also increases since you are more likely to have paid most of the debt on it. Homeowners, who have leased homes in Malibu, use the rent to pay for their mortgage which helps in paying off the loan over time.  This way, their equity increases along with the value of their home.

3. Landlords Have Tax Benefits

Did you know that the Malibu, CA real estate offers fantastic tax benefits? The tax deductions work as a cushion for times when the rental properties depreciate – after which any additional property-related expenses can be deducted against the profits received. A few tax deductions that you will become eligible for when you lease your home in Malibu are:

  • Interest
  • Personal property
  • Repairs
  • Professional and legal services

luxury real estate in Malibu California

Looking to buy luxury beachfront property in California? Get friendly but professional help in selecting your perfect beach home from one of the top Malibu real estate agents, contact Luis Pezzini today at +1-310-275-2076.

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