People tend to invest in properties to have a “home sweet home” and then succumb to the pressures of loan, EMIs, maintenance costs and what not. Renting out your apartment turns your liability to an asset. But before you jump to the opportunity you must know a couple of things like the back of your palm. Pune sees 45% of immigration of students for higher studies. With 811 colleges and multiple job opportunities in start-ups as well as MNCs it has extremely good rental opportunities for homeowners.
Yes, the chances are really high of cashing in on rental ops for you, but before you take in a renter, there are a few things you need to focus on. Often owners neglect the condition of the property and hurry up to rent it out, losing a ton of money, how? Well, there are a few investment tricks which can make your chances of higher rent go up, above and beyond. Read on for the extra cash every month!
Become a real-estate agent!
What? Really? Relax; we don’t need you to actually get a license but get into the mindset and do the research. Here’s how you start. First, locate your property area in several real-estate websites. Next, find out the trends of prices, going up and down in that area. Look for the current prices depending on square ft., 1 BHK, 2 BHK or whatever type your property is. You may find that due to proper transportation facilities, many places receive more rental income than others. Do your research and decide on a basic price.
Check out the laws for once
Often homeowners hope to extend their property add a second floor or extra rooms. You very well know there are laws for that and without proper permission, an inspection from the municipality can land you with a hefty fine. If you are hoping to build an extra room or two and rent it out, visit the government website or enquire in your municipality to fill the right forms and get the permission. Also, if you haven’t paid that outstanding tax yet, this would be the time to do it.
What else are you providing along with the rental space?
After you are done with the first two steps, you need to find out what extra facilities you are providing along with the property itself. Is there a guarantee of electricity connectivity at all times, do you have other arrangements when and if there’s a load shedding, what about security services and does the property have access to fresh water? These are some questions you will have to address. These facilities are basic ones that your tenants will need to have a proper lifestyle and you need to assure that you can provide the same.
Can we get to the extra cash part, please?
Yes, we are almost there. The facilities that we just spoke about are some very fundamental benefits that every paying guest in Pune would need as anywhere else in the world. So how do you get the extra cash? Well, the extra income depends on the property itself, how? Look at the walls are they damped, have cracks, dull, the floor dusty and unpolished, the ceiling, does it have cracks too? These things bring down the price quite a bit. But wouldn’t that be too much investment, especially when you are renting it out, you are not actually going to live in the house? Look at it from a tenant’s perspective, would you like to pay a hefty amount for cracked walls, dusty, unclean floors, and rusty shower knobs? No right? Get it fixed.
Where what and how much to invest in?
No matter how small your property is you need to ensure it is absolutely squeaky clean, beautifully colored and appealing. First check the doors, hinges; does the door make screeching paranormal sounds, enough to sudden scare? Fix it, DIY it with some oil around the hinges if nothing else. Re-paint the walls, the ceiling with a mellow color for a fresh look. Smooth walls attract a lot of great tenants. If there is iron in the water, chances are you would need to install an iron pump for keeping basins looking clean for long, you can charge the buyer for installing one if they prefer. Lastly, change or paint everything that is rusty, tenants are not looking for antique houses here.
Now compare the prices again!
Okay, once you have calculated the cost of investment behind the property for these extra measures, go back on to the websites and have a look at the properties near you for available for rental and the prices along with the condition of the property.
You can easily find some images and compare the prices of properties that are in good forms and those that look sickening. Next check how much the total amount of investment is coming up to and add 3-5% of it to the basic price. This would give you a fair idea of how much you must charge.
Get to the lease!
You need a basic agreement with the tenant just to make it legal. Now it would be easier to show the charges that you have added on for maintenance along with basic rent on paper. Get a friendly lawyer to do the check for you and have both parties sign the document including yourself.
Wouldn’t you need to advertise? Yes, of course, what were you checking all the websites for till now. Hop one to multiple ones and upload the pictures, rent details and skip the broker and their hefty charges, your tenants will be grateful for this as well as your bank account.
You may feel like renting out is one tough job, it is, but just for the first time. Some of the investments time and money are just one time investments, which you can quickly earn back. So, be wise, pick and choose the facilities that you are providing, get the property fixed and you are all set to rent out your property in Pune.