Homeowners often have difficulty in making the right balance between their property costs and their rental ability. “People often invest in properties, for the regular rental income they can get from them.
It can be difficult to decide how much your property should be charged because even though you want the property to earn money from your investment, you do not want the rent so high that there is no buyer of your property.
At the same time, the quoted rent is very low, people may wonder whether there is a problem with the property.
Therefore, it is necessary that you determine the value of your property to be able to attract tenants, without compromising returns on your investment, “says Adil Shetty.
Property size: The larger the property, the larger the rent.
Design: 900-square-foot 1-BHK can property have a little less income than 2-BHK 900 sq ft, due to the design which provides more free space.
Services: A 1,000 square feet apartment in a gated community with closed parking for cars, pools, clubhouses, etc.
will receive more rent than an apartment in a building.
Facilities and interior amenities: A house with a modular kitchen, equipment, cabinets, storage space, etc., will usually have a higher fare.
Property Location:
The part of the city where the property is located, access to its proximity and transportation facilities from schools, hospitals, etc. play a role in determining all the income. property competition affects the amount of rental in the area as well as the number of rental properties and rental property market demand.
How to get the right rental income?
Experts say that residential rentals are between 2.5 and 3.5 percent in most parts of the country. There are some exceptions based on demand and supply of quality housing in new or emerging suburbs.
Apart from this, the effective cost of interest after taxes in a home should be about 3.5 percent, because it receives a deduction of tax on interest payment and principal repayment.
See also: What to do to buy a property to earn rent and what to do
According to Vinod Menon, director, and CEO of Citrus Ventures, “There are a few simple strategies to increase your rental performance:
Furnish your home. An additional investment of 5 lakh rupees in interior parts of the house can provide 0.5% more rent.
Invest in small 3-BHs instead of small 2-BHK, because it will give you the option to rent a house, for example, three single friends, therefore you will get a better return.
Select well-maintained housing societies with the appropriate facilities, so that the cost of maintenance is not significant.
Work with trusted brokers who are strong in the local area, to ensure that the period of vacancy is minimal. “
Establishing reasonable income will ensure that your property rarely becomes empty. It means continuous income.
Be attentive to market demand. When demand is high, you can charge more. When demand is quieted, you may have to reduce the rent to attract tenants.
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