A majority of homeowners find it too difficult to decide whether or not to put their houses on sale or rent it out. Like everything in life, renting a property has its ups and downs.
If you have a vacant house and you have no idea whether to put it on rent, leave it vacant, or sell it, this is the right article for you.
Here, we shall focus on the benefits and the risk of renting your home. By the end of this article, you shall better insights and be in a position to decide whether or not to rent your home.
Risks of renting your home
Being a property landlord comes with its challenges. Here are four main challenges that you might want to consider before deciding to rent out your home.
1. Damages to property
Having someone else live in your property may result in serious damages if you’re not careful about who you rent your property to.
Even though all landlords have rights when tenants destroy their property, it may take longer to prove that a tenant intentionally damaged your property let alone being compensated for the damages.
The best approach you can take is by ensuring before you rent out your property you have established a proper security system.
Ensure your property is up-to-date with the latest home security features.
Having evidence of destruction of property by a tenant hope you submit a solid successful case and a compensation claim.
2. The overwhelming responsibility of being a landlord
All landlords have legal responsibilities that they must meet. Landlords must ensure their property is livable, safe, and clean.
You shall also be required to it with your financial taxes and Property Maintenance.
If you are not up to the challenge of taking such responsibility you might as well consider hiring a property manager.
3. Tenants failure to abide by the lease agreement
Another challenge you might potentially face as a landlord is where your tenants act against the terms of your lease.
For example, you might have agreed to rent out the property to the tenants for a year, come the due date they refused to vacate the property.
4. Lack of property maintenance
Sometimes as a landlord your property might not have been seriously damaged, however, the condition it was left at renders the property devalued or unlivable.
For instance, you might find a damaged ceiling, discolored wall paint, unmanicured lawns, overgrown edges, broken home appliances, or a poorly maintained air conditioning system.
Benefits of renting your home
On the other hand, if you choose to rent out your home you shall enjoy the listed benefits;
1. Prevents squatter
Choosing not to rent your property or have it under property guardianship may result in someone else unlawfully living on your property what is commonly referred to as squatting.
You can only imagine the damages it might result in such a scenario.
Squatters legally have no right, however, if you leave your property abandoned for a statutory set number of years, they might just approach the court to claim ownership under adverse possession.
2. Source of extra income
Other than leaving your property and occupied, you might as well choose to convert it into an extra source of income.
Some investment analysts have it that choosing to rent your property instead of selling it may result in a higher return on investment (ROI) ratio.
3. Property protection
Having the right to proper tenants in your property, you might as well rip great benefits as far as property protection is concerned.
It will save you the need to constantly inspect and maintain you are home.
4. Reduced maintenance fees
Vacating your property and not having someone live there, might cost you so much money to maintain your house.
Even though you will still have to maintain your property when you have a tenant living in it, the rental proceeds will greatly help substitute the amount of money you put on maintenance.
5. You are at liberty to move back in (with proper notice)
Another benefit of renting your home is that you can move back and continue living in your property.
However, you cannot move in and out as you please. Tenants are legally protected to be given sufficient notice before eviction.
Having looked at the benefits and the risk of renting your home, I strongly incline towards you putting it on rent.
However, the decision is up to you if you cannot any further landlord responsibilities then selling it or finding a property guardian is the best option.