There are many reasons why a homeowner would like to rent out his house. This might be to earn more money to pay his other house or they simply don’t want to sell the house but they won’t be using it as well. Whatever reason the owner has, he should think long and hard if renting his house out will be a wise decision in the long run. You can see a lot of homes for rent advertisements in the papers and in the Internet, and if you are the one renting, it is much easier for you as opposed to the one getting the house rented.
There are advantages and disadvantages of homes for rent that one may consider before choosing to rent out the house. And we shall look into them much deeper to help you decide if it is wise to get our house rented. First advantage of homes for rent is that you will be able to keep the property as your own and wait for the property to appreciate more. You will be collecting rent payouts monthly and waiting for the value of the house to go up. Once the price is right, you can now decide to sell it but you are still earning on the side.
Another advantage is the tax breaks you get from renting out a house. The money you will get from the rent payouts will be considered as ordinary payments and deductions from expenses and depreciation will likely offset the income tax you will be paying. Tax breaks is a big factor on renting out your house.
Last is that your rent collections will help you pay out your mortgage, taxes and insurance payments for the house. Since you are already staying in another place and also paying for it, the rent will be able to cover the expenses of the house you are renting out.
On the other hand, what are the disadvantages of homes for rent? First is that you are risking possible damage to your house. Of course, you cannot control what the new homeowners might do to the house unless it is stipulated in the contract that once they break something, they are liable to pay for it. Renting out a house is very risky because the value of the property might go down if something very bad happens to it.
Next is that while you get tax breaks from homes for rent, when you decide to sell it after a few years, you will be taxed for the whole profit you will be getting from the house and this is really a big bump on your finances by then. And lastly, you will need to be ready for rude and sometimes, tenants who do not pay on time. You will find yourself knocking at their doors and trying to avoid you if they cannot make payments. But this is something you should expect if you are to become a landlord.