1 in 10 Seniors Relies on Rental Income in Retirement, So Should You Do the Same?

GOBankingRates estimates that nearly 11 percent of seniors currently rely on rental income to pay their bills in retirement, reports the Motley Fool . Renting out a home can yield a predictable income stream, and provided there is an airtight lease, this income is assured while the contract remains in effect. Seniors living in a desirable neighborhood have relatively strong odds of finding a steady stream of tenants, and renting out a portion of the home could allow them property retention and additional equity, supplying more financial flexibility later. However, retirees must bear the cost of maintaining a larger home, which could grow exponentially as the property ages. Furthermore, as owners age, their ability to tend to household needs might wane, which means the costs of outsourcing home maintenance will rise. Moreover, there is always the risk that tenants might damage the property and leave the owner responsible for the repairs. A security deposit may be insufficient to compensate for such costs. Also worth considering is that renting out a portion of the home adds up to a loss of privacy that might be undesirable for some retirees.