Are you planning to rent out the property in order to earn rental income? If yes, then check out the factors that play a pivotal role in ascertaining the rental income.
Sometimes, setting the chords right between expected rental income and actual rental income is difficult for the homeowners and this is when the potential rental income comes into play. Usually, people buy property and rent it out without consenting about the market rates and various other things assuming that they are getting an additional earning from the asset. But, this attitude is not right as you being a landlord must get ROI on the property annually because that is the only reason to purchase property. But, also remember that asking for a sky-high rental price is also not going to help. Hence it is important to study, assess and calculate the rent amount on a timely basis as several things are considered by the tenants also before finalizing the deal.
Factors Affecting Rental Income:
Unit Size: The spacious property help you earn a high rental amount in comparison to the smaller housing units. Apart from this, the rent amount also depends on if the property falls in the vicinity of a society, builder flats or independent villas.
Amenities: The availability of power back up, gated community, car parking, swimming pool and more ask the tenants to shell out more rental amount in comparison to regular housing units.
Fitting & Fixtures: The rent amount also depends on the fittings and fixtures provided in the accommodation. The well-furnished property costs more rental amount in comparison to the regular property.
Locality: The tenants search for accommodation close to multiple places like the workplace, entertainment areas, hospital, Bank/ATM and shopping plazas. Hence, the property location plays an important role in fixing the rental income.
Availability: The rental amount depends upon the number of properties available for hiring tenants in the same area.
Tenant Profile: Another reason that affects rental income is the profile of the tenant such as the single person living PG, Individuals seeking semi-furnished/fully furnished and raw housing units.
Market Trend: The demand and supply of housing units in the market also affect the rental amount of your property.
Tips to Earn Accurate Rental Income:
Furnishing: Give your property/residential home a fresh look by painting the unit. Also, look for several things to fix before letting it open for the hiring of a tenant.
Investment Criteria: Think twice before purchasing a property for earning rental income. The industry experts suggest choosing of location and unit wisely.
Consider Tenant: The rent amount depends on the tenants profile also like you are hiring family, individuals for PG accommodation, friends or colleagues and other. The rent rates for each of these tenants are different and thus check with the market about the same.
Maintain Property: Keep a check at property for leakage, electrical faults and more. Either visit the property regularly or make sure that tenants report about any fault or repair work required in the property.
Use Premium Quality Material: Ensure using the good quality material in order to keep home/property look ready to-move in.
Keep all the above-mentioned points in mind while investing in a property to earn rental income.