Smart Saving While Renting Out Your Property

One of the strenuous tasks that owners of houses in Bangalore face is renting out their property. While it may add to the monthly income, there are several things you should keep in mind to ensure that you are not taken for a ride while renting out a house.


Firstly, it is essential that the owners are aware of and understand the tax implications on the property. Before renting out the property, the monthly rent should be fixed, keeping in mind the various tax deductions on the rent that you receive. If managed smartly, you can repay the house mortgage by the monthly earnings you receive from the tenant. It is crucial that you run a background check of the tenant, enquire about his financial status, and rent the property based on your judgement of the potential potent. A good way to find a suitable and verified tenant is by signing up on NestAway.

To keep score with increasing land prices, it also necessary that you increase the rent strategically every year, to have high ROI on the money that you invested in the property. To ensure that you don't end up shelling out more than the required amount later on, it is beneficial to invest in top-quality materials and services for the house before it has been occupied. This includes painting, plumbing, and electrical works for the house. It is also advisable to keep pictures of the condition of the house before the tenant moved in, so you can hold them accountable for any damages done to the house, and don't end up paying higher than usual in the course of repairing it.

A good way to save up as the owner of a furnished apartment on rent in Bangalore is to fix the monthly rent considering the price of the neighbourhood properties. You don't want to be losing out on the cash by not having conducted research about prices and house rents in your area. It is important that, after fixing your monthly rent, you choose a long-term tenant. A tenant who occupies your property on a long-term basis ensures that you don't lose out on rental amount during the process of one tenant moving out and finding another. To ensure that your income does not drop when a tenant moves out, you could consider renting the property out to multiple people, who could share the property as flatmates. Converting the property into a PG for girls in Bangalore India is also a smart way to keep the cash flow constant.

Even after a thorough background check, it is inevitable that the tenant does not pay his or her rent exactly on time each month. For late-rent deposits, you could charge a late fee, which not only ensures that the tenant is punctual in the future but also makes up for the delay in time.

Lastly, it is important that you have an account of every transaction between you and your tenant. This heightens transparency, helping you plan better and save more in the future.

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