If you are looking to invest in a property only for making rental income, the greatest chances for success lie in educating yourself about the market and customer demands. Amongst many other things, you need to know how the rental markets are performing across the nation, and how you can make your possible rental income grow quicker than the market trends. However, you will need to understand how the rental property business works as the main concept here is rental yield.
In simple language, rental yield is the proportion of the total cost of the property to the annual rent of a property. For example, if the value of your house is INR 50 lakh and the annual rental income is INR 1, 20,000 then the rental yield will be 2.4 percent. Rental yields may differ from one place to the other, but around 2 percent of rental yield is regarded as a great deal.
In order to get a good rent you can follow the below-mentioned guidelines:
- Ensure that the property is in the right locality, which means that it should have the right kind of local facilities available.
- How much rent you can ask for depends on which floor your property is located in the building and the kind of window view that it offers.
- If your property is well-maintained then you can ask for better rental charges.
- The size of the flat is often not as vital as much as its essential parts. For instance, bathrooms, bedroom and kitchen should be as spacious as the living rooms.
- Last but not the least, the amenities that come with 3 BHK flats or 2 BHK flats play a significant role in the rent that you get. For instance swimming pool, club facilities, reserved parking and central air conditioning are some of the attractive features.
The properties that produce good rental income are one of the best forms of investments which can give you lifelong returns. Thus, it is important that you do your homework and make sure that you are investing in a property that works perfectly on every front.