Renting a house or a room in your home is a great business that millions of people take advantage of to make some extra cash. While many people rent houses each year, not all of them are successful. Renting a house can be profitable and rewarding if you manage it properly.
Benefits of Renting a House
The main reason for renting a house is you can gain a large steady income. Many people buy rental houses in areas that have a constant flow of tenants and rent them for much more than cost of mortgage. Or, you have decided to sell, but property value is lower than you expected. Over time, a house rental will increase in value and you will gain capital appreciation in addition to a steady rental income.
Typically, a house will rent for a lot more than an apartment. They generally will offer more space and they are usually rented by groups such as families, professionals or students as an alternative to buying or renting smaller spaces.
Another benefit of renting a house is to use it as a vacation home and only rent for part of year. Many people buy shore homes and rent them except for a few weeks of year.
Donít forget about tax advantages. Any tools, supplies and services you purchase for house can be a tax deduction.
Challenges of Renting a House
Of course there are many challenges to renting a house. While rental income may be bigger, if a property goes un-rented for a period of time, you stand to lose more if you canít find tenants.
Maintenance of a home rental can also be challenging. Regular painting, lawn care, snow removal can require constant attention or qualified professionals that will cost you money.
Questions from your tenants on how things work, requests for repairs and rent collection can also take away from experience of house renting.