How does a Property Management Company work?
The Property management working process is a series of steps undertaken for value retention and maintenance of the property. It is aimed at generating passive income for NRI/absentee property owners.
The Property management working process is a series of steps undertaken for value retention and maintenance of the property. It is aimed at generating passive income for NRI/absentee property owners.
Property Manager is an individual who acts on behalf of absentee or NRI landlords to retain the value of their property. Property Managers look after your property in your absence while ensuring it generates a steady income.
Making your property a source of rental income as an NRI homeowner is just the beginning. While it can ensure a steady ROI, there are bigger issues that need to be addressed. Experts claim that staying competitive in the rental market is dependent upon a far more pertinent concern. It is the gradual augmentation of the value of your property that matters ultimately.
Whether your property is under constant use by tenants or it is lying vacant, its value will depreciate. Physical obsolescence is the straightforward reason for declining value. However, often the overlooked aspects are aesthetic appeal and comfort. Internal looks of your home, indoor accessories and space-use should not make your property obsolete. No tenant would want to opt for a home that has outdated looks and a sluggish feel!
It is here that interior designing services step-in. A property management company would offer the following services for an internal makeover of your home.
Space planning is aimed at making the most out of the space available to you. Residential property management would allow you to have crucial insights into making the space dynamic and efficacious. Space planning involves spatial analysis, feasibility analysis, demographic and lifestyle survey of surroundings etc.
You would surely have a blueprint of the kind of interior designing you wish to have. Everyone has! Property mangers take over from there onwards. They would discuss your ideas and provide you a 3D model of how it is going to look. It is known as conceptual design. It allows you a real feel of the design. You can thus visualize the plan and discuss the changes you would like. This process can do a couple of rounds before you finalize the design to your satisfaction.
Your residential property is made up of several spaces, each with a particular use. Detailed designing allows you to lay special emphasis on each block and corner of your residential property. In simpler words, it is the designing of each room separately. It works on the consideration that the sum is greater than it parts. Property management services would offer you the following:
Most NRIs wish to invest in some specific materials while going for renovation. Property management services for nri mediate between your ideas, wishes, desires and utility, efficiency and latest trends. They recommend appropriate materials to ensure that your property remains durable, aesthetically pleasing and comfortable. By close consultation with property management experts you are sure to add real value to your home sitting remotely.
If voguish furniture is an essential part your home-interiors aesthetic imagination, there is more good news for you! Property management experts would guide you towards incorporating your imagination into space planning and modelling. Additionally, they would be helpful with bespoke furniture designing, window designing, and soft furnishing etc.
If you love minute details, there is nothing to worry. You can give regular inputs and decide each fitting that is going to change the living experience. From bathroom and kitchen fittings to door and windows, ultimately you decide the feel and pleasure of living. Latest modular kitchen styles and home automation systems add immensely to your homes functionality. Wardrobe designing and false ceilings take your property towards becoming a design masterpiece.
No matter how particular about interior design details someone is, painting and lighting create the first impression. Choose from an unbelievable number of options. Integrate Vaastu-shastra and Feng-shui insights into the design. Decide the wall-designs for children’s and baby rooms. You can also avail specialised LED lighting and lighting design services. Give your residential space the ultimate vibe with professional interior designers!
Interior designing is a serious investment that you make into your property. You would not want to miss on details. For this reason, the professional property management companies offer you a real-time and periodic visual reporting system. Ultimately, it is your home and you should have maximum control over its look and feel.
However, if you don’t wish to move into your home soon, you can benefit immensely from rent management services. They would ensure your investment creates a regular flow of income for you. Besides, your property would be immune to devaluation. In fact, it can augment its value with professional property maintenance, despite the real-estate market trends!
Rent management is aimed at deriving appropriate and regular rental income from your newly renovated home. It ensures reduced vacancy periods, healthy usage of property, trustworthy tenants, high market value and competitive rents.
Whether lying vacant or due to tenant use, your home would demand maintenance. Property maintenance services offer you:
In case you have just bought your home, you might require pre-possession services. The list of pre-possession formalities is long. Often, even in their presence, the owners miss crucial details. It could be next to impossible if you are an absentee owner. Pre-possession formalities involve documentation related and on-site tasks.
Documentation includes obtaining of about a dozen certificates, agreements, deeds and slips besides the registry from government. On-site verification means checking the quality of fittings, doors & windows, paints, drainage outlets and construction material. Property managers specially check areas prone to leakages and cracks.
Owning a residential property is a dream for many. To enjoy the living experience in your dream home in future, you cannot compromise on its comfort and style. If your new residential property is a conscious investment, it has to stay competitive in rental and resale market. Interior designing and property management services from experienced companies assure income flow and value improvements. It is time to say goodbye to interior designing checklists. Just calmly supervise the renovation of your property remotely!
Managing your property from far away is an arduous task. Few NRIs think of selling their property if it is located in a posh locality. However, NRIs that own property in India have multiple anxieties.
There are two main roots of these anxieties.
There is the issue of safety and upkeep of the property. Parallel to it is the concern regarding the loss of value invested into the property.
No one wants their property to be used for wrong purposes or by irresponsible tenants in their absence. Still more, a property that is not maintained depreciates in value. Eventually, it loses out in the rental and resale market. It might even become unliveable!
Thanks to the professional property management companies, NRIs can now relieve themselves of their property maintenance burdens. Often, a property management company combines various interrelated services. For example, rent management and maintenance over a period of time go hand-in-hand. Similarly, pre-possession formalities and preparation of registry papers are usually done in quick succession.
No NRI would want their property to lie in waste when it can generate a steady income. The underlying logic of rental property management for NRIs is as follows.
Professional property managers ensure you maximum rent from your property. A fraction of that rent goes into maintaining the property. A part of the savings from the rent goes into repairs, renovation, upgrades and, interior designing. A small fraction goes as the charges of property managers. The remaining amount is your income from your property.
While you earn your income, your property is being maintained for you. Besides, the value of your property keeps on increasing all this while. Basically, it is a triply beneficial deal for a very small fraction of charges. Besides, you save your precious time and energy.
Professional Residential property management companies maintain a dynamic database of prospective tenants. They market your property in the rental market to reduce the vacancy period to a minimum. They also ensure that your property derives the maximum possible rent by highlighting its advantages.
On the flip side, the company would also ensure that competitive rents are set. Your property would thus not lose out in the rental market. Timely collection and transfer of rent from the tenants is also the company’s responsibility.
Generating rental income from your property is the foremost task. Much else needs to be done for overall property management.
Doing a proper background check is an essential property maintenance service. You would not want your tenants to have questionable backgrounds. Besides, property managers will carry surprise inspections to ensure that your home is used for productive and positive purposes,
This is the next big responsibility of Property management services for nri after rent management. It has three aspects:
Your property should remain attractive to tenants. Besides, it should keep up with the changing trends so that it can compete for value. Property management companies will contact you to confirm all the details of renovation. With periodic visual reporting system, you can decide when to go for refurbishing. You can even participate with designers in real-time from remote location as your home gets a new look.
Rent agreements have to be signed with tenants. In case you have just bought the property, it has to be registered with the authorities.
There are about a dozen documents that a new owner needs to obtain.
These include allotment letter, land-use certificate, mother deed, occupancy certificate, transfer certificate, NOCs, receipts of the property tax etc.
However, with the experience of property managers, you are ensured to not miss out on any crucial document. Your property would not run the risk of overstepping any local, state or national regulations. It would always comply with latest property laws.
There are a number of other pre-possession formalities that your property management company can do for you. These include:
Overall, it is meant to ensure that the seller/builder has kept the word.
Creating a rental income channel from your property as an NRI homeowner has become a lot easier. You would also be ensured that your property increases in value gradually. Favourable markets play their role, but good rents and higher value can only be ensured by good property management. Thus, you need to relax by entrusting your property in the hands of a competent property management company.
Get started with our NRI rental property management services.
Globalization is driving India’s fast urbanization. Metropolitan urban agglomerations, cities, and towns are already contributing more than two-thirds of India’s GDP. Amidst this sweep, the Real Estate sector has just begun to come out of slumber. Thus, seeking property maintenance services from professionals seems a great idea.
Investments are pouring into purchasing and the renovation of the property in the hotbeds of India’s urbanization. Big cities like Delhi-NCR, Bengaluru, Mumbai, Pune, Hyderabad and Chennai are leading the way, but second-tier cities like Jaipur, Ahmedabad and, Raipur etc. are in no mood to lag behind either.
The Real Estate sector has begun to tick again. However, the dynamics of globalization are pushing an increasing number of people into becoming absentee proprietors.
The reasons are simple.
The enticing rate at which the value of properties is rising is enough discouragement for NRIs to sell them. It is also not uncommon for professionals and entrepreneurs alike to be compelled to stay away from their home soon after investing their hard-earned money into buying a new residential property.
NRIs and absentee homeowners living in India can now heave a sigh of relief.
Now that the Property Management companies are taking root, the glad tidings are that their residential properties will no more have to suffer from reckless tenants or physical obsolescence.
Professional Property Management companies are set to gradually replace one of the chief functions of local property dealers and brokers.
That is – finding the right tenants.
However, there is plenty else that a Property Management company can deliver than just assuring that your residential property does not lie vacant.
Your home will lose value if it is not cared for.
Regular maintenance saves repair costs. Occasional renovation makes sure that your property stays in-demand in the rental market by keeping with the latest trends of interior designing and external looks.
Property management services for NRI homeowners maintain contacts or have in-house maintenance workers like plumbers, electricians, carpenters, etc. Besides, they also help you link with contractors, vendors and suppliers in case you wish to directly involve yourself with the repairing and renovation work from a remote location.
This can be a real pain in the neck!
Soon after buying a new home, you would need to pay a number of property pre-possession charges. These are often hidden until very late in the deal and come as an unpleasant surprise from the developer.
These may include, stamp duty, holding charges, labour welfare charges, GST and connection charges for water, LPG, electricity, etc.
Besides, you need to get your property registered with the government. If you are already a homeowner, it has to be ensured that the maintenance charges and bills are paid in time.
Finally, it has to be routinely checked that your property complies with property laws and different local, state-level and national regulations. Residential Property Management companies cut this hassle by taking care of it all.
Rents rise as development projects progress and the housing market surges.
However, all owners compete to make the most out of it. Ensuring that your residential property derives you the rent it deserves and you maintain a steady flow of rental income is a challenge.
This is where professional property managers step-in. Their rent management tactics ensure that optimum rents are set for your property even as vacancy rates are kept in check.
Besides, they also ensure timely payment and collection of rents.
No one would want their property to go into wrong hands in their absence.
Property management companies carry out strict security checks before renting your home to ensure that tenants do not possess a criminal background.
Their experience counts in ensuring that your home is used in a responsible way, for good purposes, and it does not lose its charm.
They often carry inspections and represent the owners in case of conflict.
Residential Property Management companies employ dedicated teams to save your time and money whether you are a new buyer or already a homeowner.
Their income depends upon saving your money; thus, they will put in maximum efforts to ensure that your property’s value keeps on rising slowly yet steadily.
This is a win-win situation for both the company and the homeowner. Typically, the services they offer include:
A Property Management company ensures that all the documents that you would need as an owner are obtained in time.
These include, encumbrance certificate, allotment letter, no-dues letter, land-use certificate, registry (with the government), sale agreement, mother deed, completion and occupancy certificates, no-objection certificate, transfer certificate, property tax receipts and deed of conveyance.
The company also checks that the quality of doors, windows, construction, bathroom and kitchen fittings, switches and electrical fittings and tiling, etc. is in accordance with the commitments made by the seller/builder.
You would be communicated of the maintenance needs of your home, and if needed, you would also be informed about the suppliers and contractors, besides the maintenance tasks carried out at regular intervals.
You would also be given a choice of interior designers and designs so that you can remotely participate in transforming your home the way you like it.
With Property Maintenance services, you no more need to keep a track of bills and charges. They would pay it on your behalf. They would also send you pictures, reports, copies of bills and other necessary documents so that you can keep a track-record of your home.
Some companies even allow real-time tracking with a client portal. All you need to do is log-in to your account and get all the details, bills and other critical information.
Managing your property is not a mean task even when you are around. But it is next to impossible if you are far away.
There are plenty of tasks to ensure that you extract unhindered income from your property while also augmenting its value. This could be too much to be left for the family members and relatives.
Professional Property Maintenance services providers do that for you at very reasonable rates to save your precious time and money.
It is time to say goodbye to home-repair checklists, brokers and local property dealers!
Get in touch with our property managers to get benefited.
This post highlights the problems and our property maintenance and rental income generation solutions for one of our NRI client.
The NRI client lives in New Zealand and has a property in Gurgaon – India. Since he lives away from his property, therefore, it became next to impossible for him to travel to India frequently to address the property concerns. Hence, the client decided to hire a property maintenance and rent management company in Gurgaon to fulfill his requirements.
Property: the client owns a Penthouse of 5400 Sq ft with 4 Bedrooms on a top floor in one of the posh locations of Gurgaon.
The client bought the property 10 years back from now. And at the time of purchase he invested a generous amount of INR 30 lakhs on the renovation and upkeep of the house. The client equipped the house with latest and superlative amenities, appliances and furniture. So that whenever he and his family came to India, they’d be comfortable in their stay.
The maintenance of the house was given to a local person/acquaintance, who was supposed to take care of the property while the owners were abroad.
Unfortunately, the person in-charge for maintenance only did cleaning ignoring all the concerned tasks of property maintenance. This resulted in poor condition of the fittings, appliances, furniture etc in the penthouse.
And when the client decided to generate some rental income from the property, it was not in the shape to hire tenants. This came as a shock to the client who was trusting the local acquaintance and was hoping to save some rental income for his future plans.
When Luxia was given the charge of the house for maintenance, our property managers found the house in a very poor condition.
Bathroom fitting were rusted and old , rubber was falling off from the window blinds, Jacuzzi was not working , A/Cs were not working or cooling. Additionally, the kitchen appliances like chimney, hub, oven etc were also not functioning properly.
All in all the house was not maintained per the standards it should have been over the years.
Just as the client hired us for using our property management services for NRI, our team was on it for the maintenance tasks. With our expert in-house professionals like carpenter, plumbers, electricians, appliance technicians (for washing machine, dryer , chimney/hob etc) we got everything rectified and thoroughly cleaned.
Our team ensured that the maintenance work was done at economic prices, that too well within the pre-committed timeline.
With our maintenance team’s efforts the house was completely transformed from an unused, unkept house; to a modern luxurious apartment.
We gave a live tour of the house to the NRI owner over video conference. And, he was pleasantly surprised with the transformed look of his house. He was very happy that he did not have to spend on the travel expense to maintain his property in India.
Now, since the house is very well maintained, so now is the time for the house to earn money from a previous dead investment of 10 years.
Therefore, LuXia engaged with top corporate companies and established verified professionals to get our New Zealand client suitable tenant.
From the various prospect tenants, we screened the details of a corporate client who wanted to use this penthouse as their company guesthouse.
LuXia got the deal finalized between the client and the corporate client with a handsome rental of INR 80,000. Our property management company handled all the verification and documentations before handing the keys to the tenant.
This is how we helped our NRI client with our property maintenance services and rent management services to generate a high return on investment.
Gain benefits, and save your time and money by hiring our residential property management services. All you need to do is get in touch with our NRI property management company in Delhi NCR and we’ll take care of all your property requirements.
The case study details the problems and our solutions for a NRI customer of LuXia LLC. It shares what services the client used and how we helped the client to save money and time.
The client is based in Australia and has a property in Gurgaon (Delhi, India). For this reason, the client has a limitation of not being able to travel to India frequently to fulfill the the various needs of his property. As this would cost him quite a lot in terms of money and time.
Property : the client has a 1900 sq ft 3 BHK Apartment with Gurgaon’s top builder.
The client was looking for a NRI property management company in Delhi NCR – India to cater to his end-to-end property management requirements. He was facing issues with the builder he had booked his property. Hence, needed experienced property managers who could handle the legal matters, interior designing, rent management and overall property maintenance; so that he does not have to fly to India to get it sorted.
He needed the results to be fast as he was losing the money he invested since the property builder was delaying the possession. And he was not able to get the expected returns on investment by starting with the rent cycle.
Here’s what he needed from a NRI property management firm in India.
Pre-possession requirements:
Post-possession requirements:
LuXia saved the time, effort and money of our Australian client by managing their property from end-to-end, and also handling their legal matters. We further benefited our client by giving them complete assurance of his property management which gave him peace of mind .
The client did not have to travel to India to get the matters sorted as LuXia’s team was on ground on their behalf, completing all that was required from the client.
Just as the client got in touch with LuXia’s property managers in Gurgaon for the pre-possession requirements, our team was on toes to help the client. Our in-house legal team worked with the builder to get the possession of the property, without having to call the NRI owner from Australia.
Along with this, team LuXia also got the registration done of the client’s property without the client having to travel to India which normally can be quite challenging for an NRI.
LuXia saved multiple trips of the client to India which could have costed him quite big in terms of his valuable time and money to get this resolved. Our property managers in Gurgaon made the possession and registration process seamless and efficient for the client.
After the registration of the property, the client wanted to get the interior designing done so that he is able to generate rental income.
Hence, LuXia’s in-house interior team got elegant designing done of the complete house right from living room, to bedroom, kitchen, bathroom etc. Our interior designers maintained the aesthetics and functionality of the house just as our client’s demand.
Finally, LuXia started with the marketing of the property through various channels to find an appropriate tenant for the client’s property. From the multiple tenant applications, LuXia chose the one suitable tenant after careful screening.
Our NRI property management team also took care of the police verification of the tenant which is a mandate before keeping a tenant in India. We also shared the real-time online portal for landlords with our client so that he can keep a track of the monthly rent and other important information related to the property.
LuXia’s value-added services that made our NRI client smile!
You too can save a lot of your time and money and get high Return on Investment (ROI) on your property. All you need to do is get in touch with our NRI property management company in Delhi NCR and we’ll handle all your property requirements.
The property owners are perplexed between managing their rental property on their own or hiring a property manager for the management.
However, some home-owners can manage the rental property for a single family on their own. But, NRI property owners are best advised to use professional property management services for better ROI.
While property management through professionals can be beneficial to all, but here are some notable benefits for NRI property owners.
Non-Resident Indian (NRI) property owners may face extreme difficulty when they try to manage the property on their own. Additionally, they may even incur heavy loss in terms of cost if even a small thing goes wrong.
It becomes almost impossible and expensive for the NRI homeowners to travel every now and then to manage their property in India. Hence, the best and worthwhile solution is to hire a property management company in India and leave all the registration (pre and post), interior designing, tenant acquisition and property management bothers to them.
As they say, “Time is money!”, so, as NRI landlords can save a lot of their valuable time, they can use it to add value to their more important and regular tasks.
The main reason for NRIs to rent their property in India is to keep the cash flow going and make some extra money for investment, or retirement savings or to cover mortgage cost.
Hence, the NRI property owners look forward to an increased return of interest for their property in India. And the most promising way is to reach out to a property management company in India and let the professionals make way for better results for you.
Since one of the tasks of property managers is to maintain your property in the best health, hence you shake hands with a lot of benefits including:
All the above benefits collectively add up to increase the ROI of the rental property for NRI homeowners who have their rental property in India.
One lawsuit against NRI landlords can wipe off the profits they made in years. Hence the understanding of the landlord-tenant laws as per the governing jurisdiction is crucial.
If out of convenience or trust issues an NRI landlord decides to let their friend or relative manage their property in India, then it can hurt them badly in numerous ways.
For instance, vacancy for a long time, misleading information about rent, maintenance mishaps and most importantly loss of money when a tenant files a false lawsuit against the landlord and due to initial negligence or ignorance the NRI landlord has to bear heavy loss.
Since, property management companies in Delhi NCR have a better understanding of tenant-landlord laws as they have been managing the rental properties for several years, therefore the property managers can help you save from false lawsuits by tenants. Thereby saving your precious time and money.
Renting a house through a property management company is an excellent choice for NRI property owners who are looking to put their property on rent. It not only saves you time and money but also increases your ROI.
Get in touch with our property management company in Delhi to manage your rental property.
As landlords or property owners the most challenging part while renting out their property is to decide the right rent amount.
When the NRI landlords or other property owners decide to rent out property, they aim to:
Basically, the aim is to make some profit by renting your property to tenants.
But again, the problem hinges on the question: what is the perfect rent for a residential rental property for landlords.
If the landlords set the rental price too low then they lose out on profit. And if they set the price too high then there are very good chances that the rental property remains vacant for a very long time.
In fact, if the rental price is high then even if the property gets occupied but as soon as the tenants find a similar place at cheaper price, they may vacate it. Resulting in revenue loss.
Landlords are mostly drawn towards increasing the rent price in order to capitalize on the cash flow, but that approach can backfire. A high rent amount could push away prospective tenants. Especially if it doesn’t match with the neighbourhood leading to the disappointing vacancies.
If you lose on tenants for even a month, your profits will drop.
Vacancy is the top reason landlords lose money on rentals, so make sure you set the rent of your property competitively.
Major Factors
Minor Factors
Here are a few tips to nail the rental price equation and gain maximum profits.
The essential thumb rule of setting the rental rate is:
Rental Price = 2.5-3.5% of the market value of property
For example, if a property is valued at Rs. 40 lakhs, then it’s rental price will range between Rs 10,000 to Rs 14,000 per month.
Having said that, the estimation may vary depending on the demand and supply equation. If a property is in high demand then the rental price can go up to 3.5%. But if the demand of the property is low then the rental rate stays at 2.5% of the total property value.
When you are trying to set the right rental price for your property then the first thing should be to study the comparable. This includes considering the market rate for similar properties in the same area as yours. The price may vary depending on:
There are various ways to study how the property rentals vary in your competition market, some of them are:
The landlords should not set a standard price for the properties. The price should vary depending on the amenities and how desirable the property is.
An apartment with an attractive view, updated appliances, well maintained floor and ceiling, bigger space, extra storage facility, balcony and windows gains more attention from prospect tenant.
Apart from these points if your property is in a multi-storey building then higher the floor, higher the rent.
The only exception to this is if the building has 4-5 floors without lift, then as you go high the landlord will have to decrease the rent.
Market value determines the current value of a property with respect to the core factors. There are many elements that may affect your property’s market value; like an infrastructural development.
For example, the development of a metro link, a flyover, or a school can positively increase the market value of your property. But, the development of a dumping ground near your property can decrease its market worth.
Thus, it is crucial to identify the current market value of your property to correctly set the rent. If you face some difficulties in quoting the correct property worth, then take help from property maintenance services provider in your area to know the exact cost of your property.
Real estate advisors believe that it is important for the landlords to consider the rental price charged by other landlords in your area. And make sure that the rent you charge for your property is in sync with the existing rental price for similar property in your area.
Too much difference between the existing rental price in your area and the rental you ‘demand” can dissuade the prospect tenants and move them to other low-priced options.
Understand the regular cost of mortgage, taxes, repair and maintenance which you have to pay while the property is vacant and appropriately decide upon the rental rate.
A very crucial understanding for the landlords is that they can/should change the rent amount as per the assessments attached to the property.
Ideally the homeowners must re-evaluate the rental price after every year or at every lease expiration to gain maximum ROI. As landlords your objective should be to increase the rental price as much as possible over time without losing the tenant as vacancy can cost you time and money.
“Lower the rental prices if you get few calls/visits on advertised property. On the contrary, increase the rental prices if you receive many calls/visits on your property.”
If you have any difficulty in setting the rental price for your property then get in touch with our property managers and they’ll take care of the entire process; saving you a lot of time and cost.
Are you looking to invest in a residential rental property? As much as the profit prospects of the investment are quite high. But a little diligence and research is appreciated from the owners before making the purchase.
Real estate market is a tough to crack; hence the buyers and sellers are advised to come prepared for the dealing or your one mistake can wipe-out your returns.
Here are the 10 most significant features to consider while buying a residential rental property.
Do not neglect the neighborhood in which you plan to buy your rental property. This is because you get to know a great deal about the types of tenants acquiring your property and your property’s vacancy rate.
For instance, if you buy a property near a school or a university, then there are very bright chances that college students will take over as potential tenants and you may have to deal with vacancies every year.
Property taxes tend to differ widely across your target area. So, you must be cognizant of how much property tax you will be paying to them. Although high property taxes are not a bad thing in a goof neighborhood which attracts long-term tenants. But some second-rate places too charge high taxes, which is not a profitable decision to make.
You can discuss the taxes with your property management company or he municipality’s assessment officer or you can even talk to other homeowners in the society.
The value of properties which have reputed schools in their nighborhood is quite high. Hence you must consider whether or not the society has a good school in the localities.
Having a good school in nearby location ups the value of any residential property, both in term of monthly rent and also when you plan to sell it in future for excellent returns.
In today’s world or even otherwise safety is the priority for almost all. Just check the arrangements made by the society to fix the crimes. The very basic is to have a CCTV camera installed and a guard to monitor the premises.
Apart from this also check with the local police for the crime statistics in the locality. Also check the rates for vandalism, serious crimes, and minor crimes, and note if criminal activity is decreasing or increasing over time.
Locations which have increasing employment opportunities are tend to attract more tenants. It is an excellent idea to invest in a property which is in a location not far from companies’ hub location.
Having said that, it is also important to keep in mind that while a good business increases a property’s value, a not-so-good business in locality may have the negative impact and bring down the property prices.
Take a tour of the neighborhood and check out the local markets, kid’s parks, eateries, gyms, public transportation and all the other benefits that attract renters.
The local municipal department has all the information about new ongoing and projected developments in the area.
If you see major constructions in the vicinity of your prospect rental property, then it is most likely a good growth area. Pay attention to any new developments that could cause a drop in the price of surrounding properties.
If an area has an oddly high number of listings, then it signals two things – either it is a routine seasonal cycle or a locality is decaying.
As a real estate buyer your job is to find out which of the two signals is rights. In either scenario, high vacancy compels the landlords to lower rents so as to attract tenants. Whereas, lower vacancy lets landlords to increase rental prices.
Rental income is what you look for the most which buying a residential rental property. Hence, you need to enquire about the average rent rate in your prospect area.
Just ensure that any property you consider to buy returns you enough to take care of your mortgage payment, taxes, and other regular expenses. Research the locality thoroughly and calculate its position in the coming years.
The returns you get from your rental property are not inclusive of the insurance you buy for your home. Hence be very careful in choosing the area to buy your rental property.
Do not invest in an area prone to flooding or any other natural disaster to save your rental income by heaps.
You may find a lot of properties for investment in the city of your choice. But before finalizing your rental property you have to do your due diligence and a lot of footwork to get the max returns on your rental property.
This may seem quite overwhelming, but you can always use the help of professional property managers in your area.
If you are looking to buy a property in Delhi NCR then our property management services in Delhi NCR will be very helpful in the entire process.
Get in touch now!