You have invested your hard earned money and bought a property. Most likely you would have also bought it with the help of a home loan. Next thing to do is make a regular income from your property. This is the tricky part. In India, the average rental income is between 3-4% annually while you get almost double in a Bank Fixed Deposit. There are few things which you can do to increase this rental income.
Decide the Type of tenant
There are different types of people who needs to rent a home like a couple, a family of 4-5 people, bachelor guys, single lady, commercial people, etc. Each and every type has got its own set of pros and cons. You first have to decide what suits you better. Whether you prefer increased rental income or someone who pays less but keeps your home nice and clean. Without making this decision do not list your property for rent. You will be confused and will take a long time to finalize on a tenant.
Furnish your home.
Furnishing a home doesn’t mean it has to be completely furnished with everything. You can also do semi-furnished homes. This is one way of increasing your rental income. Again the level of furnishing depends on the type of tenant you have decided. If you have decided to go for a family, then the level of furnishing can be less. If you have decided for bachelors, then you can consider adding a TV, washing machine, Fridge, Oven, etc. Though they are a one-time investment, you can expect better rental income from bachelors. So decide wisely and furnish accordingly.
This is something which will seal the deal for you. If it’s a new property the best you can do is add some cozy welcome mats, bright lights, etc. Since it’s a new property it will have a nice and clean flooring, wood-work, bathroom fittings, etc. When you’re planning to rent out an old property that’s when appearance comes into the picture. Try to do some renovation. Your old tenant would have left some marks on the walls. This is highly likely if they had kids. Consider the option of repainting the house interior. This is something which you have to take if the house looks really bad, if it looks ok, then go for a complete wash. Make sure to clean the bath fittings and windows glasses and make them appear new. This will give a nice feeling to the potential tenant.
This is the most important criteria which will attract the right kind of tenants. Your rental quote should be competitive. If you prefer to quote too high, then a long wait is required till you find the right tenant. Do your homework, enquire the rental pricing around your area and figure out an average rental amount per sq ft. Then do the math for your home and come up with a basic rental figure. Then add more to it based on the level of furnishing you have done along with extra amnesties that are available.
These are the few steps which you need to do before renting a property. Once you have done all these things you can look for potential tenants using local papers, online portals, through word of mouth, etc. Directowners is one such portal where you can list your property for rent without spending any money.