Investing in residential rental properties can be a popular strategy for investors, as people are familiar with the concept of renting. Rental income has been considered to be one of the consitent form of #passive income. While by renting the property tonothers helps the home seeker a shelter to live in, it gives the property owner a chance to make assured income. Last 18 month it has been a new experince for me, as I have been living in a rental accommodation. Honestly speaking what appears to be a easy catch is not so easy. Getting an accomadation of your choice is pure blessing. And if you get one then you are lucky. I have a mix experince so far.
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It was a sudden change of event that made me to look out for a rental accommodation. Before this I always lived in my own home. But when fate pushed me to do house searching in a completelly new town, I thought it would be easy. The town has ample housing option. From government made quarters to newly built appartment to a renting outhouse of big bungalows. But when I made to ground zero, I found out there is lot of tussle to get one. Firstly you have to be in contact of a local dealer to get hold of one. Then you have to learn bargain for their commission and then you have to either make adjustment to adapt to whatever they offer or forget the option to relocate.
When I started searching for a home, I started looking for a 2 room set in the appartment area, as most of facilities like market, groceries were nearby. But then someone told me that there are lot of electricity issue, so better lookout for the government quarters. As electricity have nominal cost and also there is no power cut. As this is going to be my temporary stay, the idea sounds good, as electricity is a major concern in many areas especially during summer. The quarters were old model of room set that were built in 1970-80. The condition of most of them were deteriorating. But eventually with the help of a relative I get hold of a decent room, with open spaces in front. Infact the area has everything, including greenary, to market to other facilities. But the landlord seems to be very rogue. They demanded advance rental of the while year and additionally if there is any repair to be done, then I have to bear the cost. Finding the room in good condition, I agreed with their terms and conditions. And it has been now 18 month living in my rental room.
The landlord is a government employee and he get the room from the government. But he made it an additional source of income. But it gave me a nice experince of renting a property. Being a novice in this field at first, I was clueless about rent bargaining. But on my renewal, I managed to convince my landlord for lessor increment. Generally, the rent needs to be revised at 10% but I bring it down to 5%. While looking for a house for rent, I do understand the basic of renting ;
Before renting a property, thoroughly inspect its physical condition and amenities, understand all costs beyond the rent, review the rental agreement for clauses on rent, security deposit, and termination, check property ownership documents for legitimacy, and confirm the neighborhood's safety and convenience. It's also crucial to have a written contract, confirm who pays for utilities and maintenance, and potentially check with neighbors about the area and landlord before committing.
Moreover the neighbours and locality too are important. It happened to me that while searching for home, I get to quarters, which appears to be very good condition, but something made to move away. Later I learnt,that a girl comiited suicide in the room few months ago, and the landlord was trying to fool people. Although, there is no risk, but noone would like to shift to to place where negative energy lives.
Anyhow, my experience so far is very fruitful. Make sure to get the agreement paper ready before moving in, else there may be any trouble.
In good faith - Peace!!
