Pros & Cons of Residential and Commercial Rentals


 

The market of ‘Rentals’ has risen up in Kerala only in recent years. Initially, the rental housing came into play when there was an acute housing shortage in the state. According to the latest real estate news in Kerala, it now faces the same predicament with industries and young entrepreneurs taking charge. The employment capabilities of Kerala have risen and now residential and commercial spaces are at a scarce. The citizens of Kerala mostly don’t comprehend the difference between residential and commercial properties, the Pros and Cons of each investment. Today we discuss some fundamental differences between the two.

Residential Rentals:

  •       Small Operational Expenses
  •       Shorter Lease Period
  •       Smaller Rental Value
  •       Maintenance is handled by the tenant
  •       Less Legal Complexities
  •       Less complicated for new investors to understand
  •       Availability of TAX benefits
  •       High risk of possession delay

Commercial Rentals:

  •       Huge Operational Expenses
  •       Large Lease Period
  •       Higher Rental Value
  •       Maintenance is handled by Landlord
  •       Legal Complexities
  •       High Initial Capital
  •       Rental value increases with capital appreciation, over time