Owning A Rental Property - Merits and De-Merits

Rental property has become extremely popular in urban landscapes due to the lucrative source of income they provide. Owning an apartment or home apart from the one that you reside in gives you the flexibility to put your additional property up for rent. This starts an additional stream of income flowing into your account which you can then put to use for any of the other commitments. While rental property is a great way to relieve the pressure of the monthly household expenditure, it has its demerits too. Here we discuss the merits and demerits of owning a rental property.


Flats on Rent in Jaipur




  • Steady monthly income
    Once you put your property on rent, it guarantees a steady source of monthly income. This income can then be used to either add to the monthly budget or repayment of loans or something personal. As long as the tenant stays in your property, the income is sure to continue. Also, rental rates are revised every year and if the tenant decides to continue then increased income is guaranteed. You should evaluate the rental rates in the area before deciding on the final rent to get maximum benefit.

  • Appreciation in Value
    Property is one such investment which appreciates with time and hence always considered a safe one. While your secondary property is up for rent, it will also gain value with each passing year or phase without any change to it at all. So, if you ever decide to sell it off, good returns are almost guaranteed.

  • Freedom
    Renting can become a good business and even a main source of income if managed properly. If you own a big house or a number of flats, then renting them all out for either commercial or residential purposes in a planned way can turn into a viable business.




  • Problems with tenants
    People often think that renting out property is a breeze but in reality it can turn out to be a sore thing if not done properly. Tenants almost never maintain the property by themselves and this can be a headache for you. Financially inept tenants may delay payment or altogether skip to create nuisance and problems for you. Some unscrupulous tenants may resort some unwanted activities leading to certain problems in the neighborhood. Another demerit is scouting for genuine people when your flat is vacant.

  • Expenditure
    Even if your property is lying vacant while you are looking for someone to rent it to, it will incur some expenses in the form of bills and taxes like electricity, water and house tax etc.

  • Maintenance and up-keep
    Since tenants barely bother to maintain a rented property, you will need to do it on your own. This requires time and money to be spent on a regular basis and can become irritating instead of being rewarding.


You should always run a background check on the person you are renting your property to by doing a police verification. A rental agreement is a must in which cost of maintenance and repairs should be extracted from the tenants to offset any costs incurred during the rental period.

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