People usually invest in buying a second property desiring to make rental income from it. The aim of generating rental money from the investment property is increasing high among the society each day. But, do you know whether the rent you are charging for your rental apartment/house is correct or not?
What most homeowners still don’t know how to figure the right and correct rental charges for their property! All they want is to generate regular rental income from they can get out of the investment property.
But what they neglect is how much worth the property is and how much should they charge for their rental apartments.
You should also see that your rent is not so high that it would be left unoccupied. Also, not so low that you cannot generate the income you’ve planned or people might also think that there is some issue with the property.
So the right thing you could do is to charge rents accurately so both of your wants are fulfilled. (A) You attract potential tenants (B) you don’t have to compromise on the returns you earn from the investment property.
But before you finalize your rental charges, you should know the factors that impact the rental pricing of your rental property
First, it is all about the size:
The bigger your property is, the higher you can charge the rent. Because the first thing a person enquires about the property is its size.
The layout of the property:
After the size, layouts contribute more in figuring out the rental charges. For example, consider two apartments in OMR located in the same region. The size of both the apartments is 1000 sqft which is same but different in layouts. One has a 1 BHK layout and the other is of 2 BHK, then the 2 BHK flat costs higher than 1 BHK layout as it gives more private and independent space.
The amenities that come with the property also decide the rental charges. As discussed before, a 1000 sq ft apartment in a standalone building cost you less when compared with an apartment in a gated community or if it is a gated community villa with the same size.
Fixtures and features:
The money you spent to install all the fixtures and additional features to improve accessibility and functionality also count in rents. In this case, apartments or individual houses with modular kitchen, cupboards, storage and all furnished would command a higher rental price.
Location! Where is the apartment located?
If the apartment is located in the prime location nearby reputed schools, educational institutes and hospitals and has good connectivity, then the property can command a good rental price.
Additional strategies you could count on to boost your rental yield
- Apart from the size, layout and amenities, furnishing your rental property can fetch you more rental income just like any other luxury apartment in Chennai OMR that goes for high rental prices.
- Instead of investing in a larger 2 BHK flat, invest in smaller 3 BHK apartments such that you can charge more in case of bachelors renting the house.
- Standalone building apartments yield you less when compared to gated community villas or apartments in well-maintained housing societies. So invest in apartments in a good housing society with purposeful and reasonable amenities.
Invest in apartments that are located in a prime location so you could have options to either rent for bachelors and families. So having a better connectivity around the location can fetch you, immediate occupiers, if one leaves the apartment unexpectedly. A well-maintained apartment with all necessary features in a safe community is all you need for better rental yields.