Pros:
1. Low start-up cost – Compared to other types of businesses, starting a home rental business requires little capital investment. You can purchase an existing property or convert an existing space into a rental unit with minimal upfront costs.
2. Tax benefits – Home rental businesses can take advantage of several tax deductions, such as depreciation. Additionally, you may be able to deduct certain expenses like repairs and maintenance from your taxes.
3. Flexible schedule – As a home rental business owner, you have the freedom to set your own hours and manage your properties according to what works best for you.
Cons:
1. Increased responsibility – Being a landlord requires you to take on increased responsibility, including responding quickly to tenant requests and issues, collecting rent payments on time, and managing maintenance and repairs.
2. Risk of vacancy – As with any business, there is always the risk of having vacancies in your rental units which can cause a financial strain if you don’t have the necessary cash reserves to cover it.
3. Strict regulations – Depending on the location of your rental units, you may be subject to various laws and regulations that need to be followed which can add additional paperwork and compliance costs.
4. Increased liability – As a landlord, you are responsible for the safety and wellbeing of your tenants, which can increase your liability if something goes wrong. It’s important to understand all of the legal implications before starting a home rental business.