Consider renting out rooms as an investment as this sets a base for bigger property ventures.
Buying property for rental is a safe way to invest one’s money to raise capital for bigger property purchases. People, especially young adults who have just come into the job market, are always looking for rental space so looking into buying property for rental could be a lucrative business venture. As a result of people constantly looking for rental space, this venture will not be a loss as tenants can easily be replaced, should one move out. Living the township, I have witnessed a lot of home loans going into rental in order to make extra income. Some people build backyard boy rooms to accommodate an extra five to six tenants and although it meant more people occupying a single yard, I realized that it was a great way to generate income.
If there are six tenants that pay R3 500 towards rent, which includes electricity, the the landlord makes a sum of R21 000 in a single month. This is before costs such as electricity and miscellaneous expenditure are considered. However, as much as renting out rooms can sound like a great investment plan, you also need to consider the disadvantages that come with it.
The onus falls on the landlord to ensure that tenants feel safe and secured while living on their premises. The landlord is also responsible for keeping the yard hygienic, whether it be on their own accord, or by drawing up a roster of duties for all tenants.