Retired and seeking a source of income Latest News

Retired and seeking a source of income? Why turn elsewhere when the place you live in can help you achieve just that in more ways than one? Read on...

A home can mean multiple things – safety, a place where you belong, investment, etc. Over time, children move out of the house for study, work or other purposes; you now have a bedroom to spare. What do you do with it? Or maybe you have invested in a second home, but are now finding it difficult to maintain it? Instead of keeping these spaces vacant, why not make some money out of them?

A retired life doesn’t necessarily mean that you should depend on your pension; your own home can be leveraged for continued earning. While having paying guests was popular a few years ago, hosting travellers is the current trend.

Raghav Kapur, assistant vice-president, SILA, says, “Understand your market; if you are located close to a college or university within a high-priced rental location, you should definitely rent out your home to students. Check out the prices, and accordingly decide on the price that is in alliance with your offerings. If your home has a certain standard that might appeal to tourists, you might consider listing the place to travellers for a short stay.”

PROS AND CONS

1.) ADDITIONAL INCOME:

The additional income can help you cover the daily expenses and help out with savings as well; this will act as a continued source of income even after retirement;

2.) SHARED RESPONSIBILITIES:

While screening your potential tenants, ensure you pick someone who is willing to share responsibilities when it comes to household chores, repairs, etc. And if you are planning to travel often post-retirement, you may have someone who might help you manage the house in your absence as well;

3.) TENANT AGREEMENT :

Ensure that your tenancy agreement is comprehensive with all the clauses in place. This should include an explanation on legal consequences of actions such as property damage, delay or non-payment of rent over a certain period of time, the refusal on vacating the property post the mutually agreed upon timeline, and violation of rules/guidelines established by you;

4.) SHARED SPACE:

If you are someone who values your privacy, select a tenant whose work and personal time suits yours.

TRICKS OF THE TRADE:

Ensure your home is in good condition. You might not want to invest in expensive furnishing and fixture, but to ensure that everything is in working order. Decide if you want to rent your home for a short term or a long term. In long-term renting, you won’t have to worry about multiple tenants. Whereas in short-term renting, like a serviced apartment for tourists, you can increase the prices during peak seasons, thus earning more in the few months as compared to others;

Verify your tenants and make them sign an agreement, irrespective of their being short-term or long-term. This is to safeguard your investment considering you will not be living in it yourself.

SECOND HOME RENTAL: While rental returns are not very high in India and they range between one and two per cent on an average, they can still be of good value to retired persons.

SO, IN CASE, YOU ARE LOOKING TO RENT YOUR SECOND HOME AND EARN ADDITIONAL INCOME - HERE ARE SOME TIPS:

1.) Provide a fully or partially furnished home with a functional kitchen or work-areas. A fully furnished home can fetch higher rents over empty houses/ flats.

2.) It is observed that paying guest accommodation fetches more rent as it is charged per head basis.

3.) This can be accomplished by furnishing an apartment and providing supplementary services and amenities like food, cleaning staff and basic maintenance.

Properties to look out for around Mumbai:

Chintamani Habitat, Shahapur

Royale City, Asangaon

Krishna Residency, Khopoli

Maa Smriti, Khopoli

Jainam Garden, Khopoli

Neelkanth Valley, Khopoli

Balaji Infra Balaji Complex, Khopoli

Olympeo Neo City, Neral

Puraniks City, Neral

Olympeo Riverside, Neral

Sai Krupa Valley, Neral