What is Better Renting Out or Sell That Property?
The tast of being a landlord is not simple but it’s rewards are very sweet. People prefer becoming landlords because it is a long-term form of investment which gives the investor passive incomes. A long term net lease basis will be the best way if renting the extra space that you don’t frequently use. The advantage of long term net lease properties to the landlord is that most of the responsibilities such as paying for tax,insurance and maintenance fees are shouldered on the tenant. Stressful maintenance issues that affect other landlords do not affect landlords in long term net lease properties.
The number of new home buyers today have reduced because wages are not rising at the same rate at which the cost of housing is rising. This fact has made the market for rental houses to grow. You would not get worried when you have an extra house that is not selling if you believe in that. If you want to move to another area maybe because you want to get close to your job, you can rent it and use the income to move to another house. The short term lease would be best in such situation because you may consider selling the property later.
People will most probably rent their houses when they plan to return later. Renting the house out is easier if your move is not permanent. You can be transferred to a different city temporary but with the hope of coming back after sometimes. Selling the home and finding another one when you return would be more difficulty than finding a tenant for the home.It would be more easier to find a tenant for the home than selling it and finding another home when you return. It will also prevent you from selling the property at and capital gains.
It is a wise move to rent the extra space as a way of saving for your retirement. Mortgage interests and repair cost works as a good way of avoiding tax on the income you get from the house. The propery can be sold at retirement and the money used for other projects. When you have not finished your mortgage at retirement, you can keep the house as an income generating project. You can avoid the stress that most landlords experience if you rent your retirement income generator property on long term lease basis.
It is also possible to build a business from renting out your extra space. One can start by renting out the extra space they have and using the income to buy another property. Owning a chain of properties and earning a lot from them is possible if you do this for some time. The wise way to make sure that the properties business is profitable is keeping a number that can be easily serviced.