Earn higher Rent from your House
Whenever a property is purchased with a purpose of investment, the first focus is the rental yield from that particular property. Though rental yield from the commercial is higher than residential, buyers prefer investment in residential because of the increased cost and risk connected with the commercial segment.
Usually, any property/flat can be rented to family, singles, and serviced apartments. Out of the above three mentioned rent types, the owner will get the least rent from the family. The major benefit of the tenant family is that they will maintain the property well thus returning maintenance costs will be less. Rent will be on time. On the other hand, the flat owner can expect 40%-50% higher rent with Singles/PG as compared to a family but this rent type is the most hassled way of renting out. A 3 BHK can be rented to 6 Bachelors as a PG but rent collection is a major headache and the recurring maintenance cost will be high.
According to Mr. Ankit Kansal, Managing Director 360 realty, “The best way to get higher rent is to make the house well-furnished. It has been observed that some flat owners find it very difficult to rent the property and the main reason for the same other than the location is house furnishing. The owner should transform the property to liveable form. The concept is common in big cities like Delhi, Noida, Gurgaon, Faridabad, Ghaziabad, Mumbai, Bangalore, Chennai, Lucknow, Dehradun, and many others. The second thing is the availability of services in the vicinity or inside the housing complex. When anyone moves into a rented place; the common difficulty is to search for a good maid, newspaper vendor, milk vendor, cook, grocery, medical facility, school, market, etc. It would be good if the homeowner can help in arranging these facilities and thus increase the chances of getting a higher rent.
According to Kapil Kapur, Director - Sales, Strategy & Business Development Bullmen Realty India, “Another option is to turn the property into a serviced apartment, which is a fully furnished and fully maintained apartment with facilities like working kitchen, housekeeping staff, centralized security, Wifi, electricity back up, laundry service, all Home Appliances, etc. It is similar to a hotel and thus is considered a commercial facility. Therefore, income from serviced apartments is treated as Business Income and you need to get commercial electricity / water meters installed. Owners need permission from the association and the local municipal corporation. These apartments can either be leased to professional agencies or companies. The initial cost of set up is very high in the range of Rs 8-10 lakh but one can expect very high rent from serviced apartments.
Good Marketing is key to Maximize returns. One should explore all online and offline channels to advertise/rent your property. It has been observed that some owners are comfortable to put their property on Rent only through brokers. These days tenants prefer direct dealing with owners as it helps them to save brokerage. One can always go for police verification of tenants or may demand a reference letter from the office of the tenant where he is working. Another advantage of online advertisement is that the owner can put pictures of your property which helps the tenant to decide before physical visit thus saves time. Property can be rented in a short time with the help of online channels.