Are you in a state of dilemma regarding what to do with your property? Are you having trouble selling your property and looking for an alternative? Robert Kiyosaki, the author of the bestseller Rich Dad Poor Dad, asserted that your house may or may not be an asset. He described an asset as something that brings money into your pocket, and a liability as the direct opposite. It does make sense, the definition that is. Rather than leave your property lying fallow, you could lease it and bring some money into your pocket or bank account. Below are three advantages of leasing:
Cash Flow
This is rather intuitive. Money flows into your bank account when you lease your property and you smile to the bank. Overtime you realize that you’ve recovered your initial capital in acquiring that piece of property, and even more, which you’d be wise to reinvest and generate a revolving fund. With time you could also increase your rent and that’s even more money into your bank account and a wider smile on your beautiful face.
Repairs/Maintenance
Depending on the contract you have with your tenants, you can include a damages/maintenance surcharge in your rent. With this you do not run the risk of spending from your purse on the property. And you can rest assured that in the event of a defacement of your property you do not lose. There’s money to defray the cost of repairs.
Rest of Mind
When you lease out a property, you do not worry about the appreciation or depreciation of its value in the market. Your property is off the market and will never go below the initial price that you leased it for. On the contrary, your rental rate appreciates over time. You get the opportunity to increase your rent after the time frame for an initial rent elapses. This in turn gives you rest of mind because the value of your property is increasing and your bank account swelling.
