Owning waterfront property can be a rewarding experience for those who enjoy a life on the water boating, fishing, paddle boarding, crabbing, and so much more. It can also bring delight and joy to those that enjoy the waterfront town culture, but from the safety of the land. No matter which category you fall into, waterfront property has so many benefits including generating income!
The drawbacks of having rental properties include a lack of liquidity, the cost of upkeep, and the potential for the neighborhood’s appeal to decline. In maintaining a property, minor and major repairs arise. Some property owners can save money by doing the work themselves. However, most lack the time, tools, or skills for the repairs. Maintenance and repairs for waterfront property such as a boat dock can easily take a chunk out of the budget. Construction, materials, safety upkeep, and environmental elements pose additional challenges. Thankfully, there are options to help you cover those personal property expenses including tax deductions and exploring the benefits of rental income.
There are more boaters and boats than there are boat slips in most waterfront towns—which means, if you own a dock or boat slip, you could be sitting on an income-generating piece of real estate! Many of the most popular marinas will be sold out and even reserved for months and years in advance. There are a limited number of slips at any marina and boating is very popular. Renting a boat slip at a marina can be quite expensive. Most marinas want you to pay a full year in advance, making it quite difficult for out of towners to find a place to “park”.
By renting out your boat slip or boat dock, you could take a deduction for Personal Property Rental Expenses if you reported Other Income that was from the rental of personal property.[1] Not only will you cover the cost of your maintenance and repairs, but you will also enjoy tax benefits and additional income to invest in future property or projects.
At Dockshare, we make it easy for you to sign up and start generating rental income. Sign up to list your dock today!
[1] https://support.taxslayer.com/hc/en-us/articles/360015703852-What-can-be-deducted-as-Personal-Property-Rental-Expenses-