Important Aspects of Investing in a Property to earn Rental Income.

By Abhay Harish Shah , Realty Quarter

Buying a property and leasing it for some commercial or residential use is foremost the best activity taken place in India. Many people purchase land and construct the plot according to the surroundings needs and demand.

People can think to build a moderate space and lease it to any Restaurant Business. Mostly, in metropolitan cities like Pune, Mumbai, Bangalore, Delhi, Hyderabad etc people tend to invest their money in constructing Paying Guest space, widely known as PG’s.

It is significant to decide for what purpose a person is buying a Plot/Property. If you are planning to generate regular income by giving it for rent than the surrounding area plays a vital role. Also, providing it to the right tenant is crucial.

Following I will describe some of the tips which are essential to keep in mind before buying a property.

1) Market Demand: Before planning to lend your property to someone you need to think about what business would be fine in that area in order to generate regular income. You don’t wish to replace your tenant again and again due to lack of market demand for its business E.g: Cyber Cafe, Juice Corner etc.

2) Surroundings: As I said earlier an area or the surrounding plays a vital role in any business. Before buying a property, you need to think whether that space would work out for any relevant business in that area or not.

E.g: Office space is possible in certain areas, so if you are planning to lend your premise for any Office space use, in a residential area then the rent amount you will be getting on a monthly basis would be less comparing to Commercial area.

3) Property Tax: Property charges aren’t standard in all cases and as an investor planning to procure money from the lease, you should think about the amount you should spend as duties.

High property charges are clearly legitimized in great regions, which are superlatively associated. Such territories additionally, as a rule, draw long-term renters. Areas in up and coming development hallways ought to be favored.

4) Re-selling Strategy: One of the foremost practice taken by an investor is buying a property and generating a long-term tenant and Selling the premise to some other person for a great price. Everyone wants to invest which can give fix amount of money, it drives the continuity for any business person. A strong tenant whose agreement is been registered for certain years will help to fetch some better buyers and thus good re-selling could happen in limited time.

5) Rent Amount: Obviously, renting the right property in the right area and at the right price is just good to go deal. If you have concluded all of the above points and have got some thoughts in your mind, then I would interrupt you to think for the most important factor that is Rent Amount.

Each person runs after a property to rent for a limited budget. As per ongoing market trends if you place your property rent amount perfectly by leveraging the deposit amount, then there will be no means to advertise much about your property. Again, this includes Market demand, Surrounding area, and the Premise Structure or Property Suitability for rent.