TENANTS – INVESTMENT OR HASSLE?

With MNCs, Corporate Houses and Institutions luring us away from our homes to larger, more progressive cities, PGs and rentals have gone up significantly in the last few years. In earlier times, when cave men existed, people went looking for food… today; people have to go looking for work! 

At the same time, he needs a place to stay … a place which is light on his pocket, fulfills his basic requirements and also ensures he does not miss his family!

Thus the concept of ‘PGs’ and ‘tenants’ clicks really well.

However, not many know that in order to keep tenants in one’s house legally, it is necessary to follow certain steps. For example, once a home is rented out to tenants, it will be treated as ‘commercial’…meaning electricity bills, water bills, municipal taxes and the likes will all have to be paid at commercial rates.

Although there are thousands of homes today in various cities of India which fail to register legally and pass themselves off as ‘residential properties’. They do not have the required permissions or licenses. They might get away with these tricks but when it comes to requesting legal intervention due to tenant problems, they fall in their own trap!

Everyone is looking for an easy way to earn money – and what better way than renting out our property? It gives you monthly returns… and if you’re lucky, your property is taken care off too!

But like everything in this world, renting out your property also comes with its list of pros and cons. Let us try to examine some of them…

First and foremost, the extra income generated is the primary pro to renting out a home. You can ask around, do your homework and determine the best rent you can ask for your property. The rent also depends heavily on the facilities you provide.

The next benefit to renting out a home is the advantage of having someone look after it! It is always better to have someone maintain the property than let it lay unused and gathering dust.

Sometimes, if you’re lucky, for a small rent concession, your tenant might also be willing to do your odd jobs… like cutting the grass, shoveling snow, weeding, painting, cleaning and many other routine maintenance items. This is not a written clause and depends solely on your personal ‘people’s skills’!

On the down side, renting out part of your own house might cause you loss of your private life.

And the biggest con of renting out your house is something every land lord dreads – bad tenants! Imagine, if your tenant turns out to be a nightmare with loud music, bad smells or even simple sloppiness… you might face complaints from the society concerned.

Remember to always check the local ordinances and laws prior to renting out a room in your home or a home in general. 

Some jurisdictions may frown upon this practice... especially in a country like ours… and the last thing you need is a possible fine or getting in trouble with your authorities.