Houses Unoccupie : why Homeowners Should Not Keep Their : Despite the fact that there are many individuals eager to rent houses, many residential units remain unoccupied in metropolitan India. According to Census 2011, 11 million of the 110 million residential units in metropolitan India were empty, accounting for nearly 10% of the total housing stock. According to the Census, the National Capital Territory (NCT) of Delhi alone has over 500,000 unoccupied dwellings.

 

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Similarly, Maharashtra has over 3.7 million unoccupied residential dwellings, with Uttar Pradesh and Gujarat each having over 2.4 million.

The average national rental yield is 2-3 percent, making renting a house an unattractive proposition for landlords. Apart from that, the lack of rental legislation and the fear of legal challenges drive landowners to leave their homes empty rather than rent them out. Non-payment or late payment of rent is widespread, and many landlords are concerned that they may lose their property or that the renter would do damage. Squatting is also a possibility.

Despite the low rents and associated dangers, a homeowner cannot afford to keep the property unoccupied. “The drawbacks of leaving the property unoccupied outweigh any apparent benefits,” 

 

Houses Unoccupie : There is no return on investment.

Previously, home owners were unconcern about poor rental returns because property values were continually rising. Furthermore, most investors would leave the property unoccupied so that they could sell it as soon as they found a good bargain without having to worry about the hassle of vacating it.

However, during the last five years, housing values have either stayed stable or have experienced a downward trend across the country. And, given the current circumstances, house values are projected to stay stable for the next few years.

In this case, renting out your home and earning some money is preferable to having it unoccupied and seeing its value fall due to time correction.

 

Houses Unoccupie : Expenses to be reimbursed

Even if a property stays unoccupied, the owner may be responsible for a variety of costs. Including property taxes, fixed utility connection rates, and other costs. If the house is located in a gated community, there will be society maintenance fees to pay.

If a property is rent out, the renter is responsible for most of these costs. With the exception of property taxes. Given the high cost of property ownership, it makes little sense to leave homes unoccupied.

 

Houses Unoccupie : Tax on fictitious rent

The government levies a tax on notional rent to deter taxpayers from keeping their homes empty and to make properties available for rent. Even if you don’t really earn any rent on a property, you are deemed to have earn notional rent. In some ways, it’s a twofold price. Even though the owner of the unoccupied property does not make any money from it. He must still pay the tax.

However, starting in fiscal year 2019-20, tax on notional rent will only apply if you own more than two homes. “If an individual owns two homes for self-consumption. The gross yearly value must be zero as per Section 23 of the Income Tax Act, 1961.” Explains a taxation expert. If you own more than two homes. “Even if the other properties (beyond two properties) are empty.  Projected rent from other properties is taken into account to determine gross rental revenue,” according to the IRS.

 

 

Property deteriorates.

 “A unoccupied property is more prone to wear and tear than an inhabited property.” “Having a completely working and liveable property increases the property’s life and upkeep.”

Fire, seepage, electrical damage, mould, and pest infestation are among risks that vacant houses face. It’s preferable to have renters in your home so that regular upkeep and action may be conducte.

 

Theft, squatting, trespassing, and encroachment are more common

Theft, vandalism, and other types of crimes threaten vacant homes. Copper wire, pricey interior or sanitary fittings, electrical equipment. Iron/metal from windows and doors, and even major gates are all targets for theft.

Intruders who seek out lonely spots late at night to carry out devious and unlawful actions are drawn to independent cottages in remote locations. These properties are also more likely to be vandalise and robbed. Squatters and encroachers are more likely to target vacant buildings.

The bottom line is that whether or not letting a property out generates a profit. There are several arguments in favour of doing so while simultaneously insuring its safety. It is in the owner’s best interest not to leave the property unoccupied for an extended length of time.

 

 

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