Why property owners opt to live in rented premises

Wednesday November 7 2018

Why property owners opt to live in rented premises

Renting out your home could earn you extra income. PHOTO BY Ismail Kezaala 

By SHABIBAH NAKIRIGYA

Some people save money so that they can own a home. However, there are circumstances which force them to rent out their homes and live in rented premises.
Jonathan Mugisha, who opted to rent out his home in Ntinda, shares that he did not think he would ever move out of his own house.
“There are some unbearable issues which can force you to leave your charming home without any other option,” he says.

Contracts and jobs
Mugisha says several landlords relocate because of new jobs far away from their homes.
“You may find that the job you get is mobile and there is no need to buy another house or home so you end up renting your house to get money to pay for the one you’re occupying,” he says.
Mugisha adds that since that person will be renting in his or her new location, renting out the family property will generate more money and help you pay for the extra costs.

Developments
Mugisha says developments keep on happening every time, you may find that by the time you constructed your house, the neighbourhood was vacant but after sometimes it advances.
“This happens when there is a certain development in terms of social services like schools, hospitals, markets and roads, you may find that it’s not comfortable to live in that areas due to noise , safety and lesser spac,” he says.

Make more cash flow
Jackson Mayanja from TMT Mining and Real Estates, says the current standard of living may force the property owner to rent out his or her home to clear debts. Sometimes people get loans to buy their properties hoping to pay back in the given time and it fails.
“The property owner may find him or herself in a fix where the loan if overdue and the available income is not enough to pay the loan. The only option is to rent out the house and look for a cheaper apartment in order to make more cash flow to clear up the loan,” he says.
He adds that the tough loan terms has forced people even to sell out their properties and they end up making losses.
“But after paying down your loan balance, you can enjoy monthly cash flow and you may choose to rent out your house for life because the cash flow will be increasing ,” he says.
He adds that since you already own the home, you can rent out your house for some time like two to three years to cover up the debt and then you recover your house later.

Investment experience
Mayanja says renting out your home might help you gain management and investment experience. “This helps you to learn how to manage an investment property and in this situation, you may need to work with other stakeholders which include property manager, your insurance company, clients and local authorities,” he shares.
He says if all goes well this experience can lead to many fruitful things and you may even buying more properties and become a real estate manager. He, however, says: “Sometimes these new contracts finishes and you have to go back to your own home to start a new life. When this happens, inform the tenant in time that you will need that house.”

Challenges faced by property agents

Choosing the right tenant
Property owners spend a lot of time searching for tenants, but sometimes they end up making bad selections due to lack of experience or being misled by the agent because they want their commission.

Discounting
Majority of tenants always ask for discount promising to pay more after sometime but instead they end up relocating or complaining that the house is not worth that money.
Communication between property owners and clients
When a property manager gets a client. sometimes the property owner takes long to give feedback on whether the prospective tenant fits their requirements.

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