Are you looking to purchase a rental property to boost your investment portfolio. Investment properties can be exciting and rewarding if you select the right property at hot locations. Real estate is a tough business so it is important to do detailed research before finalise, so you're on top of all the pros and cons of real estate investing will boost your chances of finding rental income. Some of the key features to Consider for a Profitable Rental Property:
Location can often impact quality of tenant and revenue. While you research about the potential rental property locations, be aware of factors that are important to tenants. A great tenant is willing to pay more or overlook less desirable aspects of the rental unit if the property is in a great neighborhood. School and neighborhood quality, walkability to grocery stores and parks, and close proximity to major employers are key features that attract great tenants. A real estate agent can help you identify neighborhoods and homes with the best rental potential. Make sure your property is in the right locality, meaning that it should have the right kind of local amenities nearby. The convenience of having a school, hospital, Garden, playground, bus and train station and a market nearby has a lot of impact on the kind of rentals you can earn.
It’s easier to rent property that is close to public transport and major highways. Most people prefer access to routes that get them to work, shopping, and entertainment in a timely fashion.
In some areas, off-street parking is a requirement for rental property. Even when it isn’t, it’s a desirable feature that attracts a higher quality of tenant.
It is much more convenient if there are separate utilities associated with each unit.
The neighborhood in which you buy property will determine the types of tenants you attract and your vacancy rate.
• Vet the neighborhood thoroughly—its livability and amenities are key.
• A neighborhood with a high vacancy rate is not a good sign.
• Know the area's selling prices to get a sense of local market value.
• Research the average rent in the neighborhood and work from there to determine if buying a rental property is financially feasible for you.
Property taxes likely will vary widely across your target area, and how much the tax liabilities.
Consider the quality of the local schools if you're dealing with family-sized homes. Although you will be mostly concerned about monthly cash flow, the overall value of your rental property comes into play when you eventually sell it. If there are no good schools nearby, it can affect the value of your investment.
No one wants to live next door to a hot spot of criminal activity. Check the rates for vandalism, and for serious and petty crimes, and don't forget to note if criminal activity is on the rise or declining. You might also want to ask about the frequency of a police presence in your neighborhood.
Locations with growing employment opportunities attract more tenants. To find out the economic development and how a specific area rates for job availability
Tour the neighborhood and check out the parks, restaurants, gyms, movie theaters, public transportation links, and all the other perks that attract renters.
The Local authority planning department will have information on developments or plans that have already been zoned into the area. If there is a lot of construction going on, it is probably a good growth area. Watch out for new developments that could hurt the price of surrounding properties. Additional new housing could also compete with your property.
Make sure any property you consider can bear enough rent to cover your mortgage payment, taxes, and other expenses. Lower the property costs, higher the rental yields so, Invest in affordable real estate markets.
However, smart choice of investments, value-added services and a host of online rental disrupters can be a game-changing recipe for India’s rental real estate market and investors. A good rental property strategy will not only build immediate cash flow and provide a long-term retirement strategy. Rental income-producing properties are one of the safest forms of investments which can give you lifelong returns, and the simultaneously appreciate in capital value as well. It therefore makes sense to do your homework and ensure that you are investing in a property that works well on every front. It is important to take note of factors such as location, prevailing market conditions, procurement price and the correct property selection. There are several benefits to owning a rental property, one of the main attractions being that it can provide a source of passive income.
Propikr's expert team is always at the service of potential customers / investors to suggest various investment options to earn regular rental income.