How can You Know the Right Rent for Your Property?
Feb 06, 2018 Home Trading Steps
You might have thought to invest in a property to earn some extra income through renting. But how to determine or decide what is the correct rent meant for your property.
So here are some general guidelines to help you with how much you should charge for the property.
It gets quite difficult for the house owners to figure out the right and potential rent for their property, as they invest in properties to earn the return in the form of rent. Hence, they can not keep a higher rent as there will no takers then. And on the other hand, they cannot even keep the rent low as then the earning might not be enough for them. Therefore it is essential to price the property correctly such that you do not have to compromise on the returns.
Here are some factors that influence the rental price for the property
• Bigger the size of the property, higher would be the rent. But there are different aspects to it. For instance, the rent for 1 BHK 900 square feet property will be lower than the rent for a 2 BHK 900 square feet property as it has more independent space.
• Amenities also fetch a higher amount of rent. A property in a gated community having parking space, swimming pool, clubhouse, the gym will have more rent as compared to a property without any amenities.
•A furnished apartment such as equipped with cupboards, modular kitchen, storage spaces will naturally fetch higher rent than an unfurnished apartment.
•The location plays a crucial role. If the property is close to markets, schools, parks or hospitals, easy access to transport, everything plays an important role in determining the rent.
•Rental yield usually differs as per different places. If the property is in suburbs or a bit far from the main city then it will earn comparatively a lesser rental as compared to the main city.
Hence if you want to earn a higher rental income, then there are certain strategies you can follow. Such as investing in furnishing the apartment. Invest in a higher BHK flat rather than a smaller one so that you can give the house to bachelor friends or students while earning higher returns. Go for a well maintained house situated in gated housing society with various amenities. Keep an eye on the market so that you can charge more rent when the demand is more in the market whereas when the market is low you charge a reasonably lower rent to attract tenants.
So here are some general guidelines to help you with how much you should charge for the property.
It gets quite difficult for the house owners to figure out the right and potential rent for their property, as they invest in properties to earn the return in the form of rent. Hence, they can not keep a higher rent as there will no takers then. And on the other hand, they cannot even keep the rent low as then the earning might not be enough for them. Therefore it is essential to price the property correctly such that you do not have to compromise on the returns.
Here are some factors that influence the rental price for the property
• Bigger the size of the property, higher would be the rent. But there are different aspects to it. For instance, the rent for 1 BHK 900 square feet property will be lower than the rent for a 2 BHK 900 square feet property as it has more independent space.
• Amenities also fetch a higher amount of rent. A property in a gated community having parking space, swimming pool, clubhouse, the gym will have more rent as compared to a property without any amenities.
•A furnished apartment such as equipped with cupboards, modular kitchen, storage spaces will naturally fetch higher rent than an unfurnished apartment.
•The location plays a crucial role. If the property is close to markets, schools, parks or hospitals, easy access to transport, everything plays an important role in determining the rent.
•Rental yield usually differs as per different places. If the property is in suburbs or a bit far from the main city then it will earn comparatively a lesser rental as compared to the main city.
Hence if you want to earn a higher rental income, then there are certain strategies you can follow. Such as investing in furnishing the apartment. Invest in a higher BHK flat rather than a smaller one so that you can give the house to bachelor friends or students while earning higher returns. Go for a well maintained house situated in gated housing society with various amenities. Keep an eye on the market so that you can charge more rent when the demand is more in the market whereas when the market is low you charge a reasonably lower rent to attract tenants.
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