Guest Post by Madhumay Mallik…
Buy or rent? It has been a perennial question for everyone looking for a residence. However many people prefer renting instead of buying a home these days. There are at least 5 reasons homeowners rent a house considering it a good business proposition.
Many people prefer to rent a house instead of buying when it comes to a choice to buy or rent for them. Nearly all of them are burnt out in a high priced housing market and after getting experience in the real estate market. They feel renting to be a more preferable and safer proposition in comparison to buying a house. But that is for the buyers. What prompts homeowners to rent out their houses instead of residing themselves? There are at least 5 reasons homeowners rent a house.
It is a Way Out of Financial Problems
Just as the people looking for homes prefer to rent a house considering it an economic alternative to buying one, homeowners also feel that this is one of the best ways getting out of their financial problems.
• Most of them have obtained some home finance to get home and now require some steady source for regular payment of the EMI.
• Very often the income source that they have is inadequate to meet these requirements.
• Renting out a house is one of the best ways of converting it into a profitable investment. This gives the owner a regular source of income whether to repay financing loans or for using them for any other purposes.
• It may be a case that the home that is now rented out is not the only one that the homeowner has.
• He or she may have another house as well where presently the owner might be residing.
• In such cases instead of letting the house remain empty and idle, it is a brilliant ploy to rent it out.
• When rented the tenant will naturally take general care of the house and will also protect it from untoward intrusion for his or her own privacy and protection.
• It is consequently a win-win situation for the homeowner renting a house and equally good for the tenant getting a residence without having to pay a fortune at one go.
The Owner is Staying at a Distance Place
Many homeowners are currently residing far away from the place where they have constructed or bought their homes. This can be when someone is in a job or carrying out business elsewhere. Some people may also have relocated elsewhere for enabling and facilitating higher studies of their children. Yet others are away on some contractual projects or assignment for a few years at a stretch. This is possibly the most important among the important reasons homeowners rent a house.
There are multiple advantages of renting the home in such cases. The tenant will take care of utilities like electric and water bill. He or she will help the owner in timely payment of different taxes like holding tax, property tax and others to be repaid by the owner in the future or to be deducted from the rent payable. Even in the absence of the owner the house remains protected, and he or she will know about its status from time to time through the tenant. Be a part of it is that unauthorized occupation of the house will be effectively prevented with tenant in place.
Growing Demands for House R
ent in the Market
With a number of foreclosure victims growing consistently that have not been bright to repay their home loans and with more and more people relocating outside their home towns elsewhere, there is growing demands for house rents in most cities and towns. Rapid industrialization has also resulted in increasing demand for houses on rent in locations where the industrial units are being established. Homeowners find this an opportunity to make good of their huge investments in the houses they have bought or constructed. Due to growing demands renting a house has become a profitable proposition for them.
Many people do not prefer to buy a new or refurbished home due to the apprehension that ultimately they will have to pay a huge amount in their renovation or maintenance. That would be an unwarranted expense in addition to the huge amount already invested in buying the house. Homeowners rent out their homes on favorable terms for those looking for similar homes meeting the needs of such people that desire to avoid renovation costs.
All said and done for many home owners, renting a house is the way out of their financial problem, and this perhaps is one of most important among the reasons homeowners rent a house.
Madhumay Mallik is a content writer and photographer specializing on home improvement and architectural building ideas. He has been working for more than 5 years now to bring the most unique ventures to the limelight.