Advantages of renting out own apartment & Living on Rent

Advantages of renting out own apartment & Living on Rent

In today’s real estate scenario, buying property in the prime locations metro cities is not as easy as it was a few years back. Not only is the market saturated but the property prices have also touched the skies. In such situations, a majority of the property seekers invest money in buying property in the countryside or suburbs as it is easily available there and prices are also not very high. But owing to their work commitments in the cities, instead of living in the suburbs, they take an apartment on rent in the central parts of the cities.

Merits of renting out the apartment

The main merit of renting out one’s apartment is the added income that you get. Moreover, an escalation in property prices will also add to your asset strength. However, over the last two years, property rates have largely remained stable, while some markets have even seen a slight correction. However, according to industry experts, these movements are cyclical and there ought to be a hike in property rates too.

Risks in renting out your apartment

If you rent out your flat and start living closer to your work place, you may attract an income tax, if the tenant stays for more than 12 months. Other than tax, owners need to safeguard their property. This includes ensuring that tenants do not cause problems in vacating the property or damaging portions of the property. Owners should also ensure that their tenant is not involved in anti-social or illegal activities, as this could land them in bigger trouble.

Things to keep in mind while renting out the apartment

• Calculating the rental income and the rent received is imperative before renting out your own home and finding a new rental house. Majority of people rent out their own flat and rent near their workplace to save on the time & money spent on commute.

• So, keeping everything in mind, make sure the total of the rental income and the money saved that would’ve otherwise been spent on the commute is getting you a profit. The effective cost should either balance out with canceling the commutation cost or should be higher to help you save some money.

• Another thing to keep in mind while renting out own apartment is to ensure who the tenants are. Find someone who is known by your friends, family, or get a trusted person from a Property management. This way, you can rest assured that your home would be in good hands until you are not there. Whoever you keep, police verification of the tenants and a thorough background check is also very important.

• Create a rental agreement while keeping everything in mind like the cleanliness, duration of rent, number of people permitted to stay, pet allowance, maintenance work, time period and percentage increase in rent, etc.

These are some of the pros and cons of renting out own apartment and living on rent. Nimmadhi will help you to ensure you find the right tenant for your home as well as find the right property owner and apartment to live on rent.