Ultimate Ways to Maximize the Profit from Your Rental Properties

  • Posted by: Namrata Group
  • 06th July, 2020

Ultimate Ways to Maximize the Profit from Your Rental Properties

It is no secret that a well located, reasonably priced real estate investment can effectively generate more revenue than the cost of the money used to finance it. Yes, we are talking about the rental income from your own house. Pune is a healthy investment ground, both in terms of the capital market or renting.

A report released by the World Economic Forum, titled Migration and its Impact On Cities said that Pune is attracting skilled migrant workers from across India. High property prices and congested living conditions in Mumbai have gone in favour of Pune where tenants are assured of comparatively lower rents in Pune. Many people are buying residential properties in Pune for investment’s sake and earning good rental income from them.

Pune is an emerging employment hub. People from all walks of life are looking for places of stay near their work-place. So whether you require a 3 BHK, 2BHK or 1BHK flat on rent in Pune or even a flat on rent in Pune without brokerage, you get them all.

Rental properties

 

Things to Remember Before Renting Out Your Property

To rent house in Pune or any other place few things must be kept in mind.

  • Since rental income will be your bread-and-butter, you must know the area’s average rent and fix yours accordingly. Setting the rent too high and ending up with an empty unit for months quickly chips away at the overall profit.
  • Also it has been observed that families or couples are generally better tenants than singles because they are more likely to be financially stable and pay the rent regularly.
  • Rent agreements should be carefully prepared in keeping with the owner’s interests.

Now let us see how you may make money with your rental properties.

1. Residential Rentals, Location Matters

If you are looking at a handsome rent for your house, then location is everything. Location decides the kind of living places people look at, so whether you buy a house to live or rent it out, ensure a great location. Places like Pune where traffic is huge issue & travel time to work nearly kills you, people opt for locations closer to employment hubs and educational institutes. Proximity to schools & connectivity to main roads also matters while deciding on rentals.

Location not only increases asset value for the owner over time, but also the ability to quickly rent that property to a tenant. Rentals vary with location; an upscale location will fetch more rentals than the rest given same size of flat.

2. Allowing Pets

One of the great debates for rental real estate is whether to allow pets or not. While some landlords opt to restrict pets in their rental property, allowing pets does open up the possibility of earning more money by collecting higher rent.

3. Be Strict on Late Fees

Leases include late fees for a reason. Many landlords are lenient with their tenants, waiving late fees or not taking the time to collect them when the tenant is a day or two late. Be strict with your late fees.

4. Rent out the Extra Space

If your property has extra space, such as an additional parking space, garage, or larger utility closet, you may rent the space for an additional amount over rent. It may be rented to someone other than your tenant too.

5. Rent Utility Items at Home

Many a times people do not wish to buy expensive electrical gadgets, beds etc. since they keep relocating to different places. This opens the door for house owners to rent out electrical items that they are not using like AC, Refrigerator, Washing Machines, old furniture etc.

Commercial Real Estate

One of the great opportunities in real estate for making a considerable amount of money is to buy & rent in commercial real estate. Commercial real estate is one of the most lucrative sources for both income and profits in the real estate market. Rentals of commercial properties offer huge returns to individuals.

Rentals across Pune

The most popular configuration for residential properties in Pune are 2BHK followed by 3 BHK units. Within the same locality rents may vary depending upon various determinants such as quality of construction, exact location of the house, proximity to strategic locations, facilities that the tenants can avail etc.

  • Relatively affordable housing for a 2 BHK flat on rent in Pune under Rs 20,000 per month can be found Wadebholai, Balewadi, Chakan, Bhor, Pradhikaran Nigdi, Daund, Wakad, Mahanlunge, Kharadi, Keshav Nagar, Hadapsar, Magarpatta, Hinjewadi, Dhanori, Kothrud, Dange Chowk, Baner. However note that not all properties in these localities are priced within this range.
  • The rental range in top localities where liveability quotient is high include Aundh where rents could be upto Rs 2 lakh per month; in Kalyani Nagar up to Rs 5 lakh.
  • Luxury properties on rent in Pune, priced above Rs 5 lakh per month include Viman Nagar, Kalyani Nagar, Koregaon Park and Boat Club Road, Senapati Bapat Road.
  • You may find affordable housing in Pune suburbs like Talegaon.

Pune attracts a lot of migrants from all over India owing to the employment and academic opportunities it offers. With this population influx, in last few years it has emerged as a residential hub. Rental properties in Pune are a huge source of income to a lot of people. You may jump on the bandwagon too and make an investment in Pune to fetch great rentals in years to come. This would be one investment you would never regret!

 

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