Renting, also known as hiring or letting, is an agreement where a payment is made for the temporary use of goods, service(s) or property(s) owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership.

Why Rent the Property as Land Lord?

Having second Property (may be Flat, House, Land, Shop and office Space etc.) is an opportunity to earn extra income. Simultaneously, it is a good way to keep your property maintainable. Renting property is also safe for property itself.

Renting property is a good idea as Land Lord?

Every vacant property has some monthly or yearly expense like daily cleaning charges, monthly maintenance expense and yearly charges like property tax etc. Looking at all the parameters, renting vacant property is always a good idea for Land lord.

Advantages of renting property as Land Lord

Not only earning from vacant/second property is a good idea but it is also an added advantage for Land Lord, he or she can buy another property on EMI by taking loan from Bank. EMI payment can be managed from that rental income which comes from renting out a vacant / second property.

Disadvantages of renting property as Land Lord

Sometimes Landlord may face the problem of not finding a good tenant (for payment of monthly rental value) for his property. Another issue maybe that the tenant may not easily vacate vacate the property upon expiring the schedule time of rent agreement especially in India. For safer side, Court Rental Agreement is best solution. So judiciary helps in such situations.

Advantages of taking property on rent as tenant

Being a tenant it is an advantage to take a suitable property to live according to his or her financial status. It is not always easy to buy property to live so tenancy may be a good option in many cases. 

Disadvantages of taking property on rent as tenant

Taking property to live on rent is not always beneficial. Sometimes, rental payment may be equal to EMI if you buy a property to live. So some time tenancy may be a disadvantage instead of advantage.

Pros / Cons of Renting:

Tenant can stay and leave property any time as per agreement norms.

  • Tenant can change property to live any time
  • No Property Tax liability on Tenant
  • No major repair liability on tenant
  • Tenant cannot change / alter property without your landlord’s approval.
  • Increase in rent after every 11 months or yearly as per agreement norms.
  • Living tenant in property but liability of property tax belongs to Land Lord
  • No Tax benefit on renting instead of that tax and GST (as per new law) shall be deducted from income.
  • Many houses available for rent have a “No Pets” policy.