Looking for A Profitable Rental Property? Consider These
Purchasing an apartment and renting it out is a great way to earn a good income. Potential appreciation, tax benefits, regular income and low risk are some of the benefits of a rental property. Real estate always forms a crucial part of investment’s portfolio. It is important to look for certain features of a profitable rental property.
Makaan IQ lists some of the features of a profitable rental property:
A well-developed neighbourhood
A neighbourhood that has good livability standards will attract quality tenants. This includes checking the local criminal rate. Go to the police station and collect data to create an overview of the criminal rate in the locality. For instance, Golf Links is one of the safest localities in Delhi. The locality is guided by private security guards and police patrolling that goes round the clock. Safety adds to the value of homes.
It is essential to ensure that your rental property is close to a job hub. For instance, buying rental property in and around Noida is a good investment bet. This is mainly because many prominent companies are looking to set base in Noida. This would in turn attract tenants.
Good rental returns
Rental return is the main factor that will determine whether your investment will be profitable or not. Here you need to evaluate that the monthly rate can cover mortgage and other property related expenses incurred by you. Along with this, studying the vacancy rate is also important to make the right call. A high vacancy rate is a sign of bad neighbourhood. Although this change in the vacancy rate is a seasonal trend.
Further development plans
It is important to consider the future developments that might be coming up in the locality. Getting into a neighbourhood that will see good growth will ensure good rental rates in the future.
Insurance to cover natural disasters is another expense to subtract from your returns. It is good to buy rental property in area where you can easily save on your rental income.