There are pros and cons to renting your property, just as there is to live on rent. Both options have their advantages and disadvantages; for example, renting allows you more expendable money in the short term while living on rent is more flexible than owning a home. Since it is ideal for those who could face sudden changes such as job relocation.
To understand better about each, let us look at all the advantages and disadvantages to help you make a well-informed decision of what will suit you, right now.
Renting out your house
Whatever be the reason, home-owners should be aware of the advantages and disadvantages of putting their apartment/house on rent.
Pros
- The best part about renting is that it provides an extra income.
- If and when the property resale value rises, your property will produce a profit later on.
- Real estate has the benefit of being usable property with value beyond a mere rupee figure: you can, of course, live in it.
Cons
- In real estate houses don't always go up in value, which means you might owe more than the property is worth.
- As the market trends fluctuate, there is a chance that your property will produce less rental income than you expect or the chances are that your property might sit vacant for several months, causing you financial strain.
- Apart from this, dedicating time and energy to the maintenance of a property and with tenants is something not everyone can do.
Living on rent:
Pros
- A vast investment will never be required, and it helps you live in a premium area that you might not be able to afford to buy.
- You have high mobility, meaning it’s easy for you to shift out of rented accommodation, by just giving the homeowners a months notice to vacate the house if you need to change the home/locality/city.
- You have fewer responsibilities, unlike that of being a home-owner. While renting, the obligations with regards to the property are always shared between the landlords and tenants. Though the landlords always bear significant repair costs.
Cons:
- You lose a stipulated amount of money monthly on rent & the real person benefiting is the owner of the house who earns an income.
- Maintenance Issue: Sometimes you might have to struggle to get the small repairs done yourself on time.
- Most often than not renewing rental agreement has no guarantee that the homeowner will want to renew it, and the chances are that it can lead to an unplanned rental increase.
- Living on rent also comes with its restrictions like you cannot renovate the property according to your requirements. Plus there are other restrictions on a rental property like the owners will not allow pets into their property and so on.
Ready to make a decision?
In either case, the only way to determine between living on rent or renting out your house comes down to research and understanding your requirement like your final budget, time frame and the personal needs and conditions of your family before you make any decisions
Related Post - Why is Buying a Home Considered a Good Investment?
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