Many people believe that renting their home is not a good idea. They are not willing to go through with all the procedures and manage everything related to it. The truth is, renting a home has many benefits. The income from the rent can actually cover the premiums of the home loan and might also leave you with some surplus. House rental rates are high these days and you can profit from the same. However, there are some things you must know before renting your house.
1. Position of the house
Location is a big factor while renting a house. People look for houses which are well connected with offices, schools, colleges and market places. The place must have good transportation connectivity too. A house with good connectivity to these places will allow you to demand a good rent. People generally are willing to pay a little extra for such a location.
2. Size of the house
A house which is big, will attract lesser people because of the rent amount, unless there are a few people sharing the house together. A smaller house is affordable for most working people. A smaller house will also cost you less and will be easy to maintain. These days, most of the families have only 3 to 4 members and they are comfortable with 2 bedroom houses to rent. That might get more people interested in the house.
If you are buying a home to rent you will be entitled to many tax benefits. If you are put the house up for rent, you will get a 30% standard deduction. You will also get deductions for municipality tax and home loans. These will decrease the amount of tax to some level. The remaining amount will be counted as normal income and will be taxed with your total income. You can contact a law firm to get help with the legal issues.