Rent-Out property and make investment | Magicbricks.com Property Pulse
The ideal way to make use of your property is to rent it out. Renting out enables you to earn a regular income, and at the same time helps you pay off your home loan comfortably. You can also think of investing in a second home while you get rental returns from your first home. However, you can make the rental income worthwhile by keeping in mind these factors before renting out your property:
Location
The location of your property can make or mar the chances of getting a good rent. Location is the most significant factor that tenants look for while they scout for homes. Proximity to the workplace, children’s school, medical facilities and shopping centres are often the essentials that tenants look out for.So having a home in areas close to the IT belt in the city, and with connectivity to the ring road and other major roads, will be an added advantage for you. This enables you to command a higher rental.
Spread the word
It makes sense to advertise. When it comes to the text in your advertisement, make sure you capture the reader’s attention by making your rent competitive, give details of the size and quality of accommodation, and its location. Use the three best assets of the property in the first sentence of your advertisement. Also, use the real estate agents to spread the word about the availability of the property for rent.Once the house has been straightened out, develop a list describing what makes the house appealing. Take note of those commonly desirable features such air conditioning and garage. Use rental terms to help ’sell’ the property. Words and adjectives that really help you get a tenant include ’state-of-the-art’, ’stainless steel appliances’, ‘vaulted ceilings’, ‘marble floors’. Be sure to use any and all of the terms that apply to your home.
Arrive at rent
Fix the rent by learning what other rental properties are going for in your neighbourhood. Remember, potential tenants will be scouting around for deals, so set the rent at a competitive price and make sure you highlight all the most valuable aspects of your home.
Furnishing and amenities
Better and fairly well-maintained buildings would fetch a better rent. Also, if your apartment has a range of recreational facilities available, tenants with families would be looking at such facilities to rent. Properties with a good range of amenities provided are popular, affecting the rental value of an apartment.The condition and the internal maintenance of an apartment, including the choice of furnishings, would again play an important role in determining the rentals for the property. The layout of the premises in terms of optimum space use in an efficient manner, terrace or a balcony, availability of maid’s room and toilet help the premises score. The level and storey of the apartment, unobstructed view from the apartment, vehicle parking spaces available, and security features, recreational facilities like a swimming pool, gymnasium, children’s play area would also play an important role in determining the rental value of the premises.
Screen tenants
You need to be able to depend on this person not only to pay the rent on time, but also to keep your home in good condition.To know more about your tenant, consider references from previous landlords, banks and employers. Ask the tenant for his company photo ID card to make sure he is still employed there.
Lease agreement
Once you and the tenant have agreed on the rent, a security deposit, a term and have settled the details, make sure that you have a good lease agreement. This lease agreement should be made on a stamp paper and should encompass all the terms and conditions between you and the tenant.It is better to periodically evaluate the rent and extend the lease on mutual agreement to avoid complications and legal hassles.
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