5 things to consider if you are becoming a landlord

Sometimes after buying a new home it is not necessary that you shift to that new place. You might rent your home before relocating to that place. We are listing some points to consider before lending your new home and being a landlord:

1. Set the new home legally to rent it

Take all the permissions from the housing society to rent it. After taking it make a rental agreement with the buyer and then rent it out. Some societies do not allow certain people like bachelors renting the property or renting for commercial purpose. They may charge additional fees for it. Do go through all these formalities and then move further in this process.

2. Check benefits of renting over selling

Before renting your new home do check the equity of your new home or research the valuation based on neighborhood figures and ensure that renting is beneficial to you over selling as per the latest market trends.

3. Tax planning

Talk to your income tax consultant before planning to rent your home. He will guide you thoroughly depending on where you live and the impact of taxes that you will have to deal in the future. All this communication will give you a glance of the specific tax situation especially if you will be planning to sell your home in the near future.

4. Know about the laws of renting a home properly

It is not so easy to become a landlord as it is not just about collecting rent. It is about being even more responsible in maintaining your home by taking care of all the repairs and maintenance. You must have homeowners insurance with you always as that may be needed to keep a liability coverage for your home. Other than this, it is a big moral rule that you don’t have the right to come to your home; although you are the owner.

5. Property management

If you live far away from your property and you are not able to visit your rental unit often then collecting the rent can be a difficult task. In that case, you can hire a property management company to handle all your rental issues, manage all the repairing work of your home and collect late fees, etc.

Thus taking all these points for consideration will make you analyse your decision accurately and get you going with your decision well-thought of.