If making an income out of your purchased property is your plan then you will have to be cautious before you set out to buy a property. Here, we have discussed the factors that you need to keep in mind before you finally close the deal. And you will never have to look back.
Check the Restrictions on Short Term Rentals
Many cities have put restrictions on short-term rentals due to the increasing number of companies like VRBO, Airbnb providing the same. If you do not wish to miss any of these lucrative opportunities of earning a rental income in such short intervals then do ensure if the HOA agreement of the property allows rentals for less than 30 days.
Single-Family Home is a Favourable Option
If you are investing in Real Estate for the first time then it would be wise on your part to opt for a single-family home. Wear and tear of the property would be less with a single tenant and the maintenance costs will not rise in the long run.
Maximize the Chances of High Returns
So, before you purchase a property you need to acquire full-fledged information regarding its locality as well as the prices at which houses are getting sold in its neighbourhood. Take time out to visit the property once each during daylight and evening. This will give you an idea of the property’s surroundings. You may even speak to those residing in the area to inquire if they have faced any problem with landlords or tenants in that area.
Property with a Bit of Adjoining Open Space
A little garden is something that is desired by a family for spending some quality time with kids or enjoying the kids with relatives on a cup of tea. The tenants are not very choosy about the type of outdoor area you will offer them but they certainly look for a little open area, which they can decorate with some artistic furniture and fancy lighting for a personal touch.
Analyze the Income the Property would Generate
Do not forget to do your research on the trend of rental income in the previous as well as the upcoming decade. A knowledge of the expected growth in rent and the estimated cost on maintenance and operations will help you to get a clear picture of the total income that you would earn from the property respectively, in the cases of sale and rent.
Ensure that Your Rental Income is Steady
The Real Estate industry too is not devoid of fluctuations in values and you need to survive during a downturn in the economy. Thus, you have to select an appropriate passive rental property for earning a steady income from it. The trick of doing so is searching for areas where the demand for rentals remains unaffected by the impact of economic slowdown.
Curtail Your Investment Risk
The rate fluctuations in the Real Estate market will not be able to overburden you or force you to remove the rent if you buy a property that will enable a positive cash flow. This will also let you save a margin for the expenses to incur unexpectedly.
Do you plan to buy an apartment at Rajarhat or want more of such relevant information? Visit us at Transventor Property Management Services.