Is it worth putting the property for rent? Who never thought of having houses to receive money every month without having to work extra. But is it still worth living on rent?
Yeah, getting a passive income is a lot of people’s dream. And for a long time, having a house to rent and earning extra money was an investment objective.
In this article, let’s talk about whether it’s still worth investing in real estate, check out the advantages and disadvantages! And more, how to make a financial plan to live on income.
Is it possible to live on rent?
Despite social and economic changes, the real estate market will always have its space. But is it possible to live on rent?
So, even though in practice, people will always need housing, you have to assess whether this is the best strategy for achieving financial success .
That said, to know if the business is viable it is necessary to evaluate some factors such as location, for example. Researching the market is also essential to get a good financial return.
Advantages and disadvantages of renting
One of the biggest advantages of living on rent is that you get a monthly income without having to work every day for it. And in the case of inheriting a property having another house, with rent you avoid expenses such as condominium fees and/or IPTU. The tenant is also responsible for maintaining the property, cleaning and cutting the grass, for example.
Another advantage is that if you need money, you can put the property up for sale. Of course, this is not the best scenario, the ideal is to have an adequate emergency reserve . Remembering that it may take some time to effect the sale and get the value.
If the place appreciates, you can earn more than the amount paid initially and make a good investment.
Now talking about the disadvantages, although maintenance is the responsibility of the tenant, the structural works are the responsibility of the owner. As well as bills, in case the property becomes vacant.
Renters are also an open question, aren’t they? Both can be great, pay on time, take care of the property, and they can bring a headache.
Renting directly from the landlord can be risky, and renting through a real estate agent will incur management fees.
Therefore, the important thing is that you evaluate, each case is different, and depending on the context, you decide whether it is worth renting.
Living on rent: how to invest in real estate funds?
Another alternative for those who want to live on rent is to invest in Real Estate Funds , known as FIIS.
With this type of investment, you invest in funds that own malls, warehouses, buildings, among others. The advantage is that you don’t have to deal with tenants, maintenance or anything related to real estate.
The managers responsible for the fund take care of these things, including issues related to paying the rent.
Another feature of the SIEF is the greater liquidity. If you have your own property and put it up for sale, you will have to wait for a buyer and, more than that, do all the bureaucratic part of the sale.
Another benefit is membership. Think of it like this, you have an apartment and need 15 thousand reais. You can’t just sell a part that equals that amount, right? But if you start investing in a real estate fund, you can sell just one part and continue with the other part as usual.
Tips for living on rent
As you may have already realized, you need to be insured before putting your house up for rent.
Living on rent can be good, but it’s not just putting a ′′ for rent ′′ sign in front of the property!
The best way to invest in real estate is to start with financial planning. And to tell you the truth, whatever the investment, the best thing to do is to start by “getting your house in order”.
Therefore, make a financial organization that will help you to have greater security in the business. Check out some tips that will help you live on rent!
– Make a plan
To do everything efficiently you need to plan, and not just financially. You also need to analyze the situation of the property you are going to put up for rent.
If you haven’t bought the house or apartment yet, check things like the location and type of house. See the location, the demand for rent in the region and the amount that can be charged.
Also analyze the fees and costs of maintenance and documentation before closing the contract. Remember that everything has to be within budget.
– Study everything about the real estate sector
Knowing the real estate market will help you make the best decisions both when buying the property and how to rent it. Study trends and keep up with industry changes.
Don’t take a shot in the dark, know everything you can, including the documentation. What you can or cannot charge the tenant and what is your responsibility to avoid surprises in the future.
– have a plan
Having goals and objectives is very important for anyone who wants to live on rent. Invest in security. You can, for example, think long term and invest in .
Thus, you can secure the future and plan your retirement . And that’s all, earning his money every month on rent.
