Rent or Sell: What’s the Best Option for Your Flat in Trivandrum

Posted onMar 20, 2025

Being the capital city of Kerala, Trivandrum is dotted with numerous important government offices, research institutes, educational institutions, and medical health centres that include world-famous super-speciality hospitals. Add to this the rapidly growing IT industry, and you see increasing demand for housing. As a real estate investor, it’s important that you stay on top of real estate market trends in Trivandrum.

What is the ideal strategy here: should you sell your flat or rent it out? Firstly, you need to understand that both have different purposes, goals, and benefits.

Renting property lets you earn a steady monthly income while you continue to retain ownership. You also continue to be responsible for the property management and maintenance. 

Selling your property lets you get funds immediately, and you transfer ownership to the buyer. You don’t have to worry about managing it, but have to forego any future income that property may generate.

When is the Right Time to Rent or Sell Your Property?

It is essential that you know the ideal time to rent or sell your property, as well as the process involved.

When to Rent

• When the market is down, selling can cause you to lose money
• When you need a regular, steady income
• If you have to move to another city and are going to return after some time
• When you want to enjoy the benefits of long-term property appreciation

When to Sell

• When the market is up and prices are high due to high demand or low supply
• If you need funds immediately, selling property is a good way to get them
• If you are moving out of your home town for good or relocating permanently
• When you want to upgrade or downsize your residence, you may need funds, and selling could be better

What to Consider Before Renting or Selling 

Current Market Conditions

You need to check the real estate market situation - is it up or slow; what is the demand like? Check the interest rates to know how much it will cost to avail a loan. The state of the local economy is also important.

Financial Considerations

Check how much of your home loan is still outstanding, and the potential income from renting. Think about taxes, closing expenses and agent commissions with regard to property sale.

Long-Term Goals and Personal Circumstances

Does property ownership align with your future goals? Also see what your family’s needs are and how they are evolving. Assess how your ownership of property impacts your ability to pivot in your career.

Costs of Renting vs Selling

There are costs associated with both renting and selling, and you should consider these when you finalize your property investment plans in Trivandrum.

Renting

• Property management fees, which are incurred regularly for ensuring proper supervision of property and renters, especially if you outsource it.
• Costs of maintaining the property including repairs, modifications, beautification, etc.
• Loss of income cost, incurred if you don’t have renters for a certain period.

Selling 

• Commissions paid to real estate brokers for connecting you to genuine buyers; this is usually calculated as a percentage of the selling price of the property.
• Title insurance, appraiser’s fee, transfer taxes, which fall under closing costs
• Capital gains tax, which has to be paid on the profit you make on selling property

Pros of Renting

Renting can bring you a steady monthly income, you retain ownership of the property, and can enjoy long-term value appreciation.

Also read: Everything you need to know about Trivandrum's exploding rental market.

Cons of Renting

You have to vet applicants and find the right tenants, who will treat your apartment with care, and will pay their rent on time. When there is no occupancy, it is a big loss of income 

Pros of Selling

You can get a solid sum in your hands and you no longer have to worry about market situations or property maintenance.

Cons of Selling

You can no longer earn a regular income and have no more control over the property. Moreover, you may have to pay a massive tax amount if you don’t reinvest the profit you make in time.

Also read: Benefits of Homeownership vs. Renting in Trivandrum.

Conclusion

Whatever your requirements or goals, with a Varma Homes apartment, you will always benefit. Our superior quality flats are always in high demand as they are RERA approved, feature the latest amenities, and are located in the best residential areas of Trivandrum.

Looking for the best flats in Trivandrum? Check out our premium 2 & 3 BHK flats with top-notch amenities in prime locations. Contact us today to find your dream home

FAQs

Is it more profitable to rent or sell a flat in Trivandrum?

The profitability of renting vs. selling depends on market conditions, your financial goals, and long-term plans. Renting provides a steady monthly income, while selling gives you immediate funds. If property prices are rising, renting might be a better option for long-term appreciation.

What are the key factors to consider before deciding to rent or sell?

You should evaluate the current real estate market trends, your financial situation (including home loan obligations), maintenance costs, and personal circumstances like relocation or investment goals.

What are the tax implications of selling vs. renting a property?

Selling a property may involve capital gains tax, whereas renting comes with income tax on rental earnings. However, rental income can sometimes be offset with maintenance expenses and home loan interest deductions. Consulting a tax expert can help optimize your decision.