In today’s fast paced environment, where people are getting less time to attend to their personal lives, one of the hardest decisions they make is about choosing a place to stay. It is not always possible to buy a house in the preferred area of choice; it could be because of the fact that one does not have finances or it could also be because there are no properties available on sale at that point of time.
Many people buy a second home as investment purpose. But most of these people do not put in enough research to ensure that they get maximum return out of their investment. Some home owners just go through the process as fast as possible as it is rather lengthy and cumbersome. This often gets the landlord in trouble with common problems being not being able to find a tenant, to getting a crooked tenant, who ends up dragging things to court. Given below are some points one should keep in mind when investing in a property, which he or she intends on renting out.
This is probably the single most important factor that goes into choosing a place with the sole intentions of renting out. The type of neighbourhood which one chooses is ultimately the basis of deciding on the quality of tenants that one gets. Owning a property near hospitals would increase the chances of not only having a tenant all year round but also has an assurance of quality.
This is one thing that one needs to keep in mind when buying a place. It would be of no use if the taxes are so high that one is forced to look for higher rent to keep the balance sheets okay.
While it would be good to have schools and hospitals nearby, it would probably be a deterrent if the qualities of these are not up to the mark since this would have an impact on the price appreciation of the property. Other things like parks, movie halls and restaurants would go a long way into uplifting the profile of any area.
No one would want to move into an area that has a reputation for criminal activities. If would be wise to check with the records at the police station to get to know how high or low the crime rate is for a particular neighbourhood. Everyone would like to feel safe in the place that they call home.
It is important to know the type of rent rates an area generates since that is the prime purpose of buying this property. This is one of the main factors that one needs to keep in mind since it would be fruitless to buy a place and then get lower rent than expected.
Areas that have high vacancy rates usually force the landlord to lower the rent amount to hold tenants back. That also does not guarantee whether one will have a tenant in the first place, since people looking to rent will have a lot of choices. However, many in Bangalore for villas near Sarjapur road have decided to go for two or more smaller properties for the same budget, and that seems to have yielded a lot more for the owner.
If you still prefer to buy just one property, there are ways to maximize the returns you get from rents. You can increase the number of rooms, infuse some new flavour in the decor, rev up the digital facilities in it and create extra space for relaxation. That’s all you really need to get a high net-worth tenant, who would love to live there and refer the place to peers when he leaves!