Due to the high prices of properties now, few can afford to buy their own homes. Most people now opt for rented spaces, especially so in metropolitan cities, where the property prices have skyrocketed and refuse to come down. Many builders have ready- to- occupy houses and there a very few takers in comparison. So if you have the moolah and the enthusiasm to gain great wealth, this is the right time to invest in properties and become a landlord. Real estate investment can be a source of great life-long wealth. If one invests money wisely, one can easily without having to work actively to earn money for the rest of his/her life. You can give a house for rent in Vijayawada or up in Delhi or any/ many places in the country and will earn great regular income. So if you think real estate is your jam, let’s get started.
It is business- It’s crucial to understand the difference between a home owner and a businessman. Being a landlord is work, at least till you get accustomed to the way it functions. While buying a property for renting it is important to think of your prospective customer, the demographic you are targeting and the money that section is willing to shell out. You should not buy a property for rent because you would love to live in it. Think from the point of view of your prospective tenant.
Start small- Before swimming in the proverbial ocean, dip your toes first. Start small and take baby steps from there. First buy just one property for renting, something that fits in your budget. This will give you time to focus on one client to understand the business. Once you get used to this only then move forward to buying more properties.
Familiarity with the location- Don’t invest in a place you have never been to or you know nothing of, just because the price is attractive. You could be duped due to your unfamiliarity with the place. Invest in places you are familiar with. First start with cities you live in. Only invest once you have a thorough knowledge of the real estate market of a place.
Setting the rent amount- Setting the rent amount too high or too low is a big blunder. DO a research of the apartment rents in your area and accordingly set the cost. You should factor in the condition of your house, the amenities you are proving, the amenities of your society etc. Also keep into account the maintenance cost of the property which you will have to incur, before finalizing the price.
Skills- If it’s a small property and you know how to do basic plumbing and electrical work, you will be saving on costs of plumbers and electricians. However if needed feel free to call them.
Professional Help- One should be willing to take professional help and be willing to pay for it. You cannot always be a one man army. You will need the help of real estate agents, brokers, lawyers, plumbers, carpenters, painters, electricians etc at different stages of your renting experience. Also if you feel than you are not able to do the running around and rent collection and reminder, hire someone to do that on your behalf.
Tenant- It is important to keep your tenants happy and satisfied. Listen to their queries and grievances and offer a solution if their demands are reasonable. Every time a tenant moves out, you will have to incur costs to get a new one. Keeping your customers happy is essential for the long-term success of any business.