I have bought a 7 marla house in bt phase 8 usman block and my plan was to rent it out, however i have some friends telling me that not to rent it out as families doesn’t look after the house and there will be lots of wear and tear work in a year time which will depreciate the house value. I am a bit concerned and needing your advice on this issue. Any kind ideas and suggestions are appreciated. Thanks
Dear Muhammad
You have to be extremely lucky if you could get good renters.
I had all sort of renters, practicing Muslim, renters from friend's recommendations, own friends and just unknowns families from dealers....never had the ones who took care of my property in the way, they comitted!
In Pakistan, it is norm that owner is an enemy!
Just think that whatever rent you are getting , 10% would be spent on renovation post property vacated.
...Locks have to be changed.
...Full paint would be done
...Bath drains strainers to be renewed.
...Wooden work to be repolished.
...Kitchen hood, exhaust fans, cooker may have problems.
...Plumbing work would need attention.
...Curtains will have to be replaced.
...If you had marble, will need repolishing...that will be expensive.
10% of the cumulative rent will take care of all mentioned above.
One thumb rule:
Always invest on commercial property for renting...residential needs a lot maintenance whereas commercial just needs to be whitewashed and you are done.
Best of luck bro.
Agreed with Abdul Qayyum sahib that commercial is the least hassle free option for renting purposes. If you can afford to keep a god fearing guard to take care of your residential property then that is the safest option but you will need to be very careful who you employ as a guard as many guards have been allowing immoral activities in the properties they are supposed to guard to make extra money on the side.
General rule:
- Overtime Structure Deteriorates/Damages while Renting out
- Plot Prices keeps appreciating so the overall asset appreciates
- With escalating costs each year construction costs going up so you will be at a benefit if you construct now than next year
- I have seen, rented houses are easy to sell off to genuine buyers as asset is generating regular monthly income
- Places like Phase 8 or alike land with filling issues, in some cases Heavy Cracks start to appear just under the sealing and thats a disaster.
For me:
Well why not when there is a potential to yield monthly rent! service charges etc on tennant rather than on owner pocket if vacant. Do a solid Rental Agreement with provision to visit time to time (just for your own satisfaction), of course respecting privacy of tenant. What can happen at worst? Pathetic Tenant? drop him at Phase 8 gate with a complementary Take Away Lunch, on a 30 days notice ...
I had a very bad experience of renting my house measuring 10 marla in Phase 8 Sector C. Lot of wear and tears and I have to spend a lot on maintenence. To have a good Tennant is a rare chance. I second AQ sb. Recommedation to go for shops and apartments for best rentals and less overhead cost.
Thanks gents for your valuable insights! yes commercial is the way to go, if pocket allows!
However, the fact and actual question: 'House has been Bought' To Rent that or Not?? ... is the equation to be solved.