Are you wondering about different ways in which you could supplement your income when you retire? Whether you’re already retired, or have a long way to go, there are several ways in which you can prepare for it economically. One of them is passive income, a way of making money from an enterprise or an investment in which you’re not actively involved. It means little or no effort at all is required to bring an extra amount regularly into your home budget. Usually, passive income comes from two main sources: rental of your property and investment in stocks. Flatio.com is a company that helps you monetize on the former. This article is to help you understand how and why should you consider renting out your room or apartment.
Buying rental property for retirement
If you plan to make extra money and have some assets to invest in it, one of the safe ways to do it is to use real estate - buying a rental property, for example for an extra retirement income, and becoming a landlord.
How to calculate rental income
For beginners in the field, we have prepared a short guide on how to calculate tax on rental income. Our introduction explains the situation in Czechia, but it will probably help you understand what to look for in your own country. In order to understand how much you can profit from your property, we advise you to look for a rental property income calculator. It will allow you to easily estimate your costs, such as utilities, insurance, maintenance, etc, and see what net and gross profit you can have from these assets.
Rental income for retirement
Imagine you’re gearing up for a sabbatical, or just to cease professional activity for money earlier than 65. You’re thinking of setting up a way in which you can continue generating income during retirement - and considering rental. This option offers more stability than other alternatives and often yields higher turnovers than stocks or bonds. All you need to learn is how to calculate property value based on rental income. In most cases, owners use gross rental multiplier (GRM), which requires you to divide the property price by the annual rental income to understand its value. It’s a great way for you to create a stable cushion for a comfortable time off work.
Rental income after retirement
Or maybe you’re already on the other side and you’re planning on keeping your lifestyle? Maybe the house you live in might be a bit too big just for you? Or you’re often on holiday, or with your family? Consider rental as a way to bring income after retirement into your home budget. You could use traditional advertisements in your community to inform potential renters about your place, but you could also turn to Flatio, an alternative platform that helps individuals relocate for medium-term to a new place.
Passive income - rental property
What is the advantage of promoting your property with us? You get to rent your place for longer than usual Airbnb stay, by offering more affordable prices to your guests. Yet you also profit more than if you rented it long term to a local tenant because our target audiences are business people traveling for work and projects, students, digital nomads living a cosmopolitan life between continents or professionals looking to educate themselves or find a new career in a new place. Less maintenance and hassle, and a better deal to make some rental income for retirement. Using rental income as retirement backup plan is worth considering with us.
