When you buy a property and when it is bought through a mortgage, you wish to pay the mortgage as soon as possible. Buying a property is a large investment, so why not get some return on this investment. You have sown the seeds and its time when you taste the sweet fruit. And when you have a property in a city like Chennai why not put up your Chennai house for lease or rent so that your property can pay for itself?
Being a property owner, it is natural for you to ask questions like:-
- How can my property make any money?
- How can land pay for itself?
These are general questions which pop up in your mind. Let’s talk and you will see how many ways are there for making money from an empty place.
Are We Talking About Renting?
Well, yes and no. Though renting is an option if you want to earn from your property, but it is for the short term. If you want your property to pay for a long time, then leasing is a better option. Here you need to understand the aspects of leasing as it is a contractual relationship. You need to understand it before you put up your Chennai House for lease when you don’t have any idea about leasing.
Choosing between renting and leasing also depends on the property you have. If you have a small house or apartment, you can rent it. But for commercial properties, it is not possible to rent them out for a short period. Here option of leasing seems like a good one.
But Aren’t Renting And Leasing Same?
Well, here you are mistaken and it is very common to substitute renting and leasing. Some points can help you understand the nuancec..
- Leasing is for a longer period, usually more than twelve months. Renting is for a shorter period.
- There are monthly installments in a lease agreement, unlike rent in rental agreements.
- Though both have two parties, but are named differently- lessor and lessee for lease and landlord and tenant for renting.
- In leasing, the responsibility of maintenance lies on the lessee and in renting, it is for the owner and not the tenant.
- The major difference is that after the end of the lease period, the lessee has an option to buy the property (if it is a finance lease) which is not an option in the case of renting.
There are other differences as well, but these will do for now. You can understand the difference and judge as per the kind of property you have on this basis whether you want to put up your place for lease or rent.
But It Is Under Use…
In case, you have only one property which you are occupying presently, but still want it to generate some income, there are ways. In case you have a separate section in the house which can be rented, rent it out. If there are rooms vacant and you are ready for some company, keeping paying guests is also an option.
Can It Be A Vacation Home Or A Bed And Breakfast?
This is your place and you can make it anything you want. If you are a local, then you can make it a vacation home and put a smile on people’s face who are looking for having a good time in your city. The idea of Bed And Breakfast isn’t bad. You can do it yourself or can put your Chennai house for lease to anyone who will use it for the purpose. See the ideas are numerous. All you have to do is to think a little harder.
For A Commercial Property….
In case of a commercial property, you can always rent it. If it is a small place or shop, then it can be rented. For large office premises, it is better to lease it as it will be for the long term. In case of leasing though, it is better to check the few important things about the lessee. Do understand the laws that will be applied, and also the duties and rights as a lessor.
Again commercial properties can also be of different types. It can be an office, a shop, a warehouse, a storage space, etc. A warehouse can be leased or rented to one or multiple people as per space. If you have storage space in your house itself, you can rent it out as well.
But I Have A Property In The Form Of Land…
Having land as the property doesn’t mean that it should not be used. Now you may ask that should you start farming, then answer is absolute no. But being no farmer with a piece of land doesn’t amount to the thing that there can be no farming. There are others who can do farming on your land.
It is simple. Lease out your land for farming or other occupational purposes. You will receive your monthly installments and the land will be in use. If it is not agricultural land, then also it can be leased for some purpose as there are many people who are looking for a little piece of land.
What About Selling It Sometime Later?
An investment in property is an investment after all and it is also subject to risk. You can think of it as a long term investment and keep it for sale after a few years when the prices will be high. But as the market is always uncertain and depending on the economic conditions, you can never say anything.
So it is better to generate a return in the short term as well. What will be done in the future is a future event and will be dealt with when the time comes. Being farsighted is good, but till then it is recommended to employ your property to work.
Every single asset you own, small or large, is capable of generating an income. But you need ideas to put it to use. The property, being a large investment cannot be spared. See, how many ways are there to employ your property so it can pay for itself. Think carefully and decide, whether you want it to be just a property or a fruitful property.