What is Better Renting Out or Sell That Property?
Becoming a landlord is a challenging task but it has more enjoyable rewards. One of the reasons why people prefer being landlords is because it is a long term net lease properties with income streams that are passive. A long term net lease basis will be the best way if renting the extra space that you don’t frequently use. Long term net lease properties are advantageous to the landlord because responsibilities such as paying for taxes,insurance and maintenance fee are left for tenants. Stressful maintenance issues that affect other landlords do not affect landlords in long term net lease properties.
There are very few new home buyers today which may be attributed to the failure of wages to rise as the cost of housing rises. The market for rental houses has risen due to this fact. If you consider that you don’t have to feel worried when your extra house is not selling fast. The income you get from renting your extra space can be used to move to another house if you want to move to a house closer to your job. The best way to offer a lease in such a situation is on short term basis because you may consider selling it later.
People prefer renting their houses when they plan to come back later. Consider finding tenants for the house if the move is not permanent. A transfer to another city can take a short time after which you will come back. 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. By using this move, you can also avoid selling it at no capital gains.
You can also use the rented space as a wise way of saving for your retirement. You can avoid paying tax on the house income if you have mortgage expenses and other costs. You latter sell the property when you retire and use the money for other projects. The house can also be kept as an income generating project if you have not finished paying your mortgage. You can avoid the stress that most landlords experience if you rent your retirement income generator property on long term lease basis.
You can also consider renting out this extra space as a business building method. Income generated by renting the extra space you have can be used to buy another property. Owning a chain of properties and earning a lot from them is possible if you do this for some time. You need to make sure that you keep a serviceable number of properties to continue making profits from the properties business.