All You Need To Know Before Investing in a Residential Property for Renting Purposes

June 1, 2023
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Investing in residential property is certainly not a walk in the park, and at times it can seem like a seriously daunting process. But when done right, it can be a hugely successful endeavor. Of course, this is easier said than done, and there are numerous things you will need to keep in mind before taking the leap on a property, whether you’re planning to buy flat in Navi Mumbai or elsewhere. It also helps a lot to know you are working with a name in real estate with genuine credibility whom you can trust, and there’s hardly a better brand in the industry than L&T Realty!

Buying Residential Property To Rent It Out? Smarten Up and Keep These Points on Your Radar!

A House Is (Most Often) As Good as Its Address.
Another huge factor that can greatly play a part in determining the kind of success you may get in renting out the property is the locality or neighborhood in which it is situated. This also determines the nature of the kind of interest the property may attract in terms of potential tenants. The nearby facilities and landmarks will play a huge role in getting a better understanding of this. For instance, if the property is close to a major commercial hub, then the chances are that most potential tenants will be working professionals looking for a residence near their place of occupation. If you are looking out for homes such as 2 BHK in Lower Parel or other such locations, this is certainly worth noting.

Check Out the Property Inside Out, From Every Corner.
If it’s a ready-to-move-in home…
A major and obvious factor to take into account when you are considering investing in a property is its overall state and any damages it may have. It is vital to have a thorough understanding of the level of repairs and conditioning that the property in question might be in need of before it can be considered a usable space. Therefore, you would be wise to have the property examined by a professional, and then you can get more of an idea of how much more you would need to invest as far as repairs are concerned. Addressing all of these problems beforehand can play a huge part in having a more stress-free experience when eventually renting out the property.
If the property is under-construction…
Of course, it goes without saying that it’s not possible to check out the aforementioned elements in an under-construction property, because most of them won’t be tangible at that stage. But in this scenario, you can take a leap of faith based on the builder’s reputation and the construction quality of their completed projects. With L&T Realty, you can be rest assured that the home you invest in, be it under-construction or ready-to-move-in, will be worth your investment, whether you are buying it to rent it out or stay there yourselves.

Property Taxes Can Impact Your Rental Income.
The property taxes are an important factor to note down as they can be a major contributing piece when you are trying to understand what you would eventually be paying. But it is also worth remembering that if the property tax is on the higher end, it does not necessarily mean a bad thing and could be a good sign of the possibility of tenants being willing to pay more rent for the property. You should also keep in mind that, while property taxes for a specific property may not be very high at the moment, they could also be set to rise in the near future. So figuring out how much of the eventual rent this property tax may deduct from what you get will be very useful.

Rent Charges – Fetch the Most Fruitful Returns on Your Investment!
A common concern that most property buyers have after they attain the property is how much they should be charging in terms of monthly rent. One method that is often used by many experienced property investors is the use of the one-percent rule. This means the amount that you charge for rent must be roughly one percent of the total amount that you have paid for the property. This does not need to be religiously followed and you certainly charge more or less than this amount, but it is a useful way to gauge a rough number.

Summing It Up…
When you are in the process of buying a residential property with the plan of eventually renting it out, you are bound to face a number of difficulties if you do not keep certain points in mind. This blog should give you a rough idea of the kind of things you need to pay attention to before really putting your money into residential real estate, whether you are looking into a 1 BHK in Powai, or an apartment of a larger configuration elsewhere.

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