Having a luxury custom home built is quite an investment. If you’re nervous about this investment paying off, there are ways to make your new home work for you. One option is to rent out your home to vacationers. If your new home is located in an area where people like to vacation, renting out your home to them can be a wonderful income stream. Let’s look at a few of the benefits of renting out your home after working with luxury home builders.

Tax Benefits

When you own a vacation rental, it’s considered a business venture for tax purposes. That means the income you receive from this venture has a lot of tax advantages. You can write off many of your home expenses if they are related to the rental business. For people who need more tax write-offs, this can be a real game changer when it comes to filing your taxes each year. When you begin working with luxury custom home builders, you should also start your research on what would be required to use the home as a vacation rental property and how it can affect your taxes in the future.

Rental Income

The obvious reason why many people put their custom homes up for rent is to create an additional stream of income. This income can help to pay for the construction of the home, or it can help with other expenses. People are always interested in short-term rentals, and according to VRM Intel, the demand has increased by 81%. In addition, the top five states with the highest concentration of custom home building in the United States are Texas, Florida, North Carolina, California, and Georgia, according to data from the NAHB, thus leaving open many opportunities for those in those areas. This means that putting your home up for rent is a smart investment idea.

Dual Uses

The truly luxurious thing about using your custom-built home as a vacation rental is that the home will then have two uses. It can be used as an income stream, and it can also be used as your personal vacation home. Not only is this a huge boost to your quality of life, but it will also save you money over the years as you won’t be paying for lodging on your own vacations.

These are just a few of the benefits you’ll see if you use your custom-built home as a vacation rental. If you’re looking for quality luxury custom home builders to help you make your dream home a reality, contact Bryan Murphy Builder today.