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05 Aug

Advantages of Renting Out an Owned Property

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It’s true that renting properties is a lucrative business that is why a lot of people dive into purchasing flats, houses and shops. It all seems easy as if property owners simply sit back and relax till the start of new month when the paycheck arrives. But that’s not reality paychecks don’t come easy, it’s true they are a good source of income but still to manage it is a full time job. Below are advantages of renting out a property that you own,

1-No Bills

You don’t need to worry about your utility bills which include electricity, water and gas. The renter will pay all bills till he is in contract with you. But you need to make sure that previous bills are already paid off before you hand over the key.

2-Maintenance

One time maintenance means paint your home and do the fixes before renting it out afterwards when you hand over the key it will be renter’s headache to maintain the property.

3-Freedom

You are the only boss of your properties this will give you independence and freedom to invest, rent, and maintain property according to your wish and desire.

4-Monthly Income

It is one of the few sources of income through which you can earn money without doing anything. You can even pay for your mortgage and other expenses by renting out your property to a reliable person. In case your rent is higher than mortgage, you will also have additional amount each month.

What if you take a loss on property? Market can fluctuate and you need to be prepared for loss as well but holding onto the property at that time can benefit in future when property value rises as well as rents.

5-Appreciation in Value

Once you own the property all you have to do is let the time pass because most of the time the older the property, higher will be the price. So, if you are planning on renting or selling an older property, be ready for a rise in price.

6-Renting as an Alternative

When the market is down renting out a property can be a good alternative to selling. For example if for some reason buyers are not able to arrange finance, there will be low demand in the market and your property value will drop. At that time it’s a good idea to rent out your property and let the bad time pass that way you will also be able to cover up some loss.

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