How Co-Living, Student Housing Segments Can Help Landlords Earn Better Rents
Much to the chagrin of many landlords, their properties, bought with the sole purpose of earning handsome rentals, often fails to accomplish that task. Frustrating as it might be to hold on to a property which makes you lose money in EMIs and taxes, it is also an indicator that you need to make some strategic changes to earn the planned gains.
Explore the co-living business
Going by traditional wisdom, it is best to open your doors only for working people. This assures you of getting regular monthly rent and a well-maintained house. While these are fair points to expect, you have yet to find suitable tenants who are willing to pay the expected rentals.
Various surveys suggest that the working population in big cities are increasingly opting for co-working spaces to get the facilities their fast-paced working and personal life demands. Such spaces also help them in keeping the renting cost low. As a result, the co-living market in India is set to become a $1 trillion market by 2024.
Landlords must surely mull over this trend and run their own co-living space by making the required alterations in the existing property.
Student housing, a much-in demand market
If projections are to be believed, investors in student housing would be able to earn double-digit returns as more and more youth are moving to bigger cities to pursue higher education and look for organised players who can offer them quality living. Typically, a rental property would not get you more than 2-3 per cent as return on investment.
Getting over any qualms you may previously have had about renting your property to 'noisy kids' would be a good idea, purely for monetary reasons. While you are at it, try and work terms and conditions in a way that its pleasant for both parties involved. Since the student housing segment has great potential, one could also consider re-developing the property that is suitable for this tenant category.