Rental income and how to create it!
Rental income and how to create it
After you have bought a house to live in, the next investment should be in a property that should start generating income for you. Rental income is one of the most stable, consistent, long-term and secure incomes provided you have invested carefully in the property.
Here’s how you can start earning income on your property:
- Right Property: Firstly decide if you want to invest in a residential or commercial project. Residential rental income is 2-3% of total property cost while commercial property offers 7-8% rentals. However, the commercial property’s maintenance costs are higher so decide accordingly.
- Location: Conduct proper research before investing in a project as location plays the most important role. Property around educational institutions or business districts are always in demand and generate higher rents.
- Invest in Maintenance: Ensure the property is in perfect shape with all the basic amenities in order so that tenants are happy and eager to use the place for their needs. This would result in lower tenant turnover and lower vacancy rates, thereby leading to regular high rentals.
- Paperwork: Take professional help to have legal paperwork in order before leasing out the property and make provision of increasing rents rationally keeping in mind the market forces.
- Work with Tenants: Tenants tend to continue lease period for longer periods if they find the place as well as landlord conducive to their requirements. Hence, be diligent with late rentals (if any, at times), ensure the tenants feel at home and their genuine concerns are addressed ASAP!
Remember, renting out property isn’t a hobby, but a business. Hence, invest efforts and resources to enjoy the rental income throughout your life!
