Owing a property for investment purpose has become an essential. Local second time home buyers and off shore investors are now pouncing on every opportunity to stock up on inventories due to the robust rental yields. But how will you be able to manage your property’s capital value and retain your tenants for the long term? Well, we give you tips that will not only help you earn great income, but will also help you maintain the property well.
Most of the tenants today want to reside in a property that is well maintained. Working professionals usually spend more than half of their income on rents, so if the property is well maintained, you will be able to retain your tenants for a longer period of time. Ensure you property remains spic and span and check for all the utilities, they need to be really strong!
It is very important to keep your tenant happy and the only way to take care of them is by understanding their needs and wants. While most of them would want you to renovate the house, you don’t need to entertain their all demands. You could always just stick to white-washing the house, replacing old fixtures with the new ones and most importantly ensuring the house is in a rentable condition.
Migrants from across the country are now moving from one place to another due to the endless number of job opportunities. And with working professionals driving the market- home owners need to match furnishings according to the tenants’ taste. Most working professionals wouldn’t consider investing in an unfurnished house, so if you have funds in hand then furnish the property. If you don’t want to do that, you could always start with a semi-furnished house and then slowly furnish it at regular intervals.
According to recent reports, furnished homes generate higher rental yields when compared to unfurnished or semi-furnished homes.
Have it all on paper
Ensure you have a tenancy contracts that establishes tenancy termination. This will not only ensure you remain a risk-free landlord but it will also give you the legal right to request your tenant to leave. Also to ensure you have a legit tenant, used a tenant screening process that helps you shortlist your tenants.
While most of the tenants fear the rental raise, it’s okay for a landlord to increase the rental amount at regular intervals. To ensure both the tenant and the landlord remain in their comfort zones, raise the rentals based on the governments guidelines.
Remember, a residential property is a long term investment and if you maintain that property well, you will end up receiving fruitful returns.
Nidhi C Thacker for IndiaProperty.com