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Free guide · no login · checked 4 Nov 2026

Renting out a house or flat

Earn monthly rent from a home you own.

Money to start

Under ₹5,000

Time it needs

Under 10 hours a week

Risk

Low

Works from home

Yes

Explore

What it is, who it suits, what it can pay, how soon, the upside and the risks.

If you own a house, flat or floor you do not live in, you can rent it to a family or individual. A written agreement, police verification and a clean handover protect you.

Who it suits

  • Owners of a second home or an empty floor
  • NRIs and people who moved cities
  • Retired people wanting steady income

Upside

  • Monthly income
  • Property value may rise
  • Simple tax rule with a 30% deduction

Risks to know

  • Bad tenants and disputes
  • Empty months
  • Repairs and society charges

What it can pay

We do not publish a number without a reliable source.

What drives it: Location, size, furnishing, tenant demand, maintenance and empty months between tenants.

Time to first income

Usually two to six weeks to find a tenant.

Assess

Skills, money, tools, hours and registrations you need, and a five question fit check.

Skills

  • Choosing a tenant carefully
  • Basic paperwork

Money to start

Painting and repairs before letting.

Tools

  • Written rent agreement
  • Inventory list with photos

Time per week

A few hours a month.

Licences and registrations

Tick each one as you get it. Your ticks stay on this device.

Quick fit check

  1. 1.Do you own a home you are not using?
  2. 2.Is it in a place where people want to rent?
  3. 3.Can you handle repairs or pay someone to?
  4. 4.Will you do tenant verification?
  5. 5.Are you fine with some empty months?

Answer all five to see how well this fits you.

Run

Your first 30 days to the first rupee: set up, price, get paid, find customers, keep records.

0 of 11 steps done

  1. Days 1 to 7

    Set up

  2. Days 8 to 10

    Price it and get ready to be paid

  3. Days 11 to 24

    Find your first customers

  4. Days 25 to 30

    Record and review

Nurture

Grow and stay compliant: tax, GST, government schemes and the help that fits.

Grow it

  • Furnish to rent at a higher price
  • Consider a PG or homestay model
  • Plan tax with home loan interest

Tax: Rent from a house

Return: ITR-1 or ITR-2, depending on your other income

  • Rent is income from house property. You get a flat 30% deduction for repairs, whatever you actually spend, plus interest on a home loan for the let-out home.
  • Municipal tax you pay is deducted too.
  • A tenant who pays more than ₹50,000 a month must deduct TDS (Sec 393 of the Income-tax Act 2025, old Sec 194-IB). Claim it in your return.

GST on rent

Renting a home to a family to live in is exempt. Renting a home to a GST-registered business: the tenant pays GST under reverse charge. Commercial rent counts toward the ₹20 lakh limit.

Make it official

Only what this way of earning needs. Free tools are marked; services are done by a TaxSavvy CA.

Ask a SavvyRental income planningRent, TDS, home loan and the 30% deduction, planned.See how it works →Free toolRent agreement builderA clear rent agreement in minutes.Open the tool →Free toolRent receipt generatorMonthly rent receipts for your tenant.Open the tool →TaxSavvy serviceITR-2 with capital gainsShares, funds and property gains reported correctly.See how it works →

Questions

How much can I earn from renting out a house or flat in India?

What drives it: Location, size, furnishing, tenant demand, maintenance and empty months between tenants.

How long until the first income?

Usually two to six weeks to find a tenant.

What do I need to start?

Painting and repairs before letting. Registrations: Registered rent agreement as your state requires, Tenant police verification, PAN.

Which ITR form do I file for this income?

ITR-1 or ITR-2, depending on your other income. Rent is income from house property. You get a flat 30% deduction for repairs, whatever you actually spend, plus interest on a home loan for the let-out home.

Do I need GST?

Renting a home to a family to live in is exempt. Renting a home to a GST-registered business: the tenant pays GST under reverse charge. Commercial rent counts toward the ₹20 lakh limit.

Sources

Read on 4 Nov 2026. Limits, rates and fees change: check the official site before you rely on them.

This guide is general information from TaxSavvy, not a promise of income. No legal way to earn is guaranteed or instant. Avoid any offer that asks you to pay to join, recruit others or bet.

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