Nowadays families are looking to rent houses instead of buying one due to a number of factors involved. It could be for vacation purposes. Or it could be they are waiting for their house to be constructed fully so that they can move into it later on. Whatever the choice is, the problem arises when the rental property is small in size.
Small houses surged throughout the real estate because of their affordability, but with the uncertainty you see a lot of downfalls for smaller properties.
In this article, we will focus on the pros and cons of renting small homes and see which one takes precedence.
What is a Small House Rental?
A small house is not usually tiny in size. Each city has a defined set of floor measurements according to which the property size may vary. However, small houses are downsized between 100-400 sq ft.
They are best for small families instead of larger ones. But they still have a lot to offer to the tenants at the time. You can make it fully equipped with all modern amenities. Let’s say you have a small house located in Smart City. Now because the smart city Lahore payment plan was affordable in terms of price you chose to buy it. Afterward, you are done paying the installments and will still have the money to set up amenities.
Pros of Renting a Small Home
A small house is a perfect opportunity to explore the passive income domain. Some of the common benefits of renting this type of property include:
Just because a house is small, it does not mean the architectural style is the same. The floor plan mostly might be the same, but the style and layout matter the most. In this case, you have a plethora of options to explore and choose from. Because they are small in size, such houses can offer a lot to you.
You can be creative in terms of the decor and renovation. It can be a double-story or even a triple-story house.
Easy to Build
If you are even remotely interested in construction, this is your chance to build a small rental property under your management. There might be no need to take a mortgage for the construction. So that means limited fortune will be spent as compared to a larger house. Small houses can be easily overseen by the landowner himself. You might even have to use fewer building resources and recycle what you already have left from the construction of your first home.
Flexible and Mobile
Smaller families often choose small homes. The reason is they are easier to maintain, plus they also offer mobility and flexibility in terms of moving when required. Larger houses have more space, so more of the floors will be covered. For a small house, you do not need to overdo the space with the interior. This way you can pack and unpack items easily.
Great for Landowners
Most landlords will consider renting out a property in this unstable economy. A smaller property rents out faster and for a longer duration. This means the chances of tenant turnover is minimal leaving you with reliable tenants for the rental property.
Small homes are considered to be more eco-friendly and sustainable than larger houses. They conserve energy, water, and electricity bills also decrease. The smaller a home is the limited household waste will be. You can build solar panels for maximum use of renewable energy resources.
Cons of Renting Smaller Homes
As good as the pros sound, unfortunately, there’s a downside to renting small houses too. We have discussed the cons as follows.
Unfair Property Value
One of the greatest downsides of a small home is that investors are hesitant to put money into it. The property value of larger plots is more, which is obvious, as compared to smaller ones. Any good-standing location does not guarantee a good sale if a house is small in size. Therefore there is always a flight risk of the inaccurate depiction of the property value.
Cost of Maintenance
Less floor space is a convenient option for smaller families, but the amount of maintenance involved is rather time taking for a small home. For instance, the bathrooms have all the plumbing installed. They may need occasional repair. If it’s an old property, chances are there are no standard plumbing fixtures neither they have the capacity to install one. This is troublesome.
Limited Financing Options
Be ready for alternatives if you know you’ll require finance to buy your small house rental. It can be easier for you to get authorized for a loan if you have enough money to put down or can demonstrate your desired business plan.