Pros and Cons of renting residential property in Hyderabad

There are a number of homeowners, who have invested money in different projects in various cities. Some of them keep them until the price rises while others rent their residential properties to get regular income. Real estate in Hyderabad has many opportunities for people with rental homes. But it is not always beneficial due to many reasons. If you are also planning to rent out your residential property, first have a look at the pros and cons of it.

Risk associated with renting a home

Tax liability: Sometimes people live in rental homes to get a tax deduction by showing house rent expenses. But if you live closer to your workplace and the tenant lives in your home for more than 12 months, you can attract income tax.

Safety of the property: Whether you live in your residential projects in Hyderabad or not, the responsibility for its safety is always on you. Apart from external security, you also need to ensure that tenants don’t cause any damage to the property while vacating it.

Benefits of renting your residential property

Additional income: This is one of the biggest advantages due to which most of the homeowners let out their property. Renting a home gives them regular additional income, which they can save for future.

Increased value: Improvement in prices further adds to asset’s strength. A slight correction in the prices can fetch you high profits even on affordable homes in Hyderabad. The property price rise works as a hedge against inflation and keeps you financially strong in difficult times.

Precautions to make it safe

If you have additional residential property, which you want to rent out, be careful while doing it. Just a few preventing steps and you can earn a lot of income from rental property. If you plant to live on rent after renting out your own home, do the calculations to ensure you save some money. There is no use of renting a home and paying more money on rent of a home where you are living.   

Once you have found a tenant and zeroed-in on rent, ensure that you make the tenant sign a rent agreement. There are many real estate projects in Hyderabad, where people gave their homes on rent, but instead of earning money they ended up paying to tenants to get their homes evicted. So plan everything carefully to ensure that you don’t get into any such problem.

Post By : Shrikant Sain