Peace of Mind
Your peace of mind may be the main benefit of renting out a home to pay for assisted living. You have peace of mind knowing that your loved one will receive the support they need and that you won’t have to be concerned about finding money to support them. In addition, a lot of people decide to relocate to an assisted living facility to save their kids the financial burden of paying for their care at home or in another setting. This could be yet another incentive to think about renting out a property, especially if your elderly loved one doesn’t already reside in an assisted living facility. Suppose you employ a McDonough property manager to oversee the property. That way, you won’t have to worry about things like upkeep, leasing, or other property management duties, which will give you even more peace of mind.
Low-Risk
Using rental revenue to pay for assisted living has the extra advantage of a reasonably risk-free investing plan. If you opt to use Medicare or Medicaid funds to assist a family member, for instance, those benefits may be terminated or limited if your home is no longer occupied. You can continue to earn money to assist with the costs of your loved one’s assisted living by taking over ownership of the property and renting it out.
Tax Breaks
Investing in rental properties to raise money for assisted living can also be a great way to save money on taxes. Your loved one might be able to earn a sizable tax benefit by renting out their home if they own it outright or owe very little on it. You might also have other completely paid-off properties that could generate extra revenue for current needs as well as future ones. Thus, even if your senior loved one continues into their 90s, you will have multiple rental property income-generating options.
Cash Incentives
Last but not least, your loved one can spend less for their care if you pay for assisted living using rental income. This is so that customers who pay in cash as opposed to using insurance or another payment method can benefit from discounts or other incentives offered by some facilities. In addition, the pricing structure of assisted living facilities might vary substantially based on a resident’s income and financial standing; therefore, this approach could help lower overall expenditures.
As you’ll see, there are numerous advantages to using rental property revenue to cover the costs of assisted living. It’s a useful tactic to pay for the care of an older relative or friend, whether you rent out an existing house or buy new ones as part of an investment strategy. You and your loved one can obtain a pleasant home both now and in the future with a sound plan.
Leasing a family home is a pivotal step, which Real Property Management Anchor is mindful of. When it comes to selecting renters and maintaining the property, we conduct ourselves with the highest honesty, so you can rest assured that a valuable asset is in good hands. To learn more about what we offer, contact us online today.