Posted by: islamicfinancingnews | May 2, 2012

Islamic mortgages are part of Islamic finance options

It’s important to become familiar with the various Islamic finance options available including Islamic mortgages to make owing your home a reality. In a tough economy, many homeowners supply a spare bedroom or undergo renovations to make room for an in-law or basement apartment, using the rental income to help make home ownership more affordable. There are a few things to consider before you decide to rent space in your home.

Collecting a security deposit is essential in the event a tenant causes undue damage to your property. For example, accidentally forgetting to lock a door or unplugging an appliance could leave the area vulnerable to a break-in or fire. Over and above homeowners insurance, a security deposit will help to cover costs should property damage occur, otherwise, it must be returned to the tenant within a certain period of time after he or she vacates the premises. You’ll need to familiarize yourself with the landlord-tenant laws enacted in each state to protect the rights of tenants at the hands of bad landlords, and defend the rights of landlords to deal with problem tenants or potential lawsuits regarding issues such as adherence to housing and safety codes, and proper handling of security deposits and eviction notices.

Keep in mind, you will have to pay a marginal tax rate on rental income so be sure to report this taxable income and associated rental expenses such as insurance and repair costs on your annual federal tax return. There are many options available to you as a homeowner. You should speak to your lender about the different Islamic finance options available to you including Islamic mortgages.

 

 

 

 

 

 

 

 

 

 

 

 


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