When rentals are soaring, do you find your rental income falling short? Even in a landlord market, the cost of being a homeowner is quite high. Rent ensures regular returns on a real estate investment. For those with home loans, it is also essential to reduce the burden of EMIs.
Getting the most out of your rental income is, therefore, key to maximise your earning. To achieve this, you must boost your rentals while reducing expenses. With ApnaComplex Rentals you can ensure that costs are minimised while the income is maximised.
How to get the most out of your rental income?
Here are some simple tips to maximize your rental income:
Determine the rental value of the property
The rental value of the property will depend on its market value and the prevailing rental rates in the area. The market value of the property can change due to a number of factors. This includes infrastructure developments in the area such as an upcoming flyover or opening of a metro station. Similarly, the value may also fall due to factors like a decline in circle rates.
The prevailing rental rates are even more important. While you may want to maximise your income, make sure that it is not inordinately higher than the current rates. When pushing the rates to the higher end, make sure that the house is worth the higher amount.
Continuing with the same tenant is always advisable. The extent of the rent hike will be dictated by the lease agreement. You can renegotiate the terms once the lease expires, especially if the rental rates in the micro market have also gone up. Keep in mind that your tenant may ask for certain concessions in return. These can include painting and deep cleaning or carrying out enhancements to the property.
Be prepared with other concessions that you can extend when renegotiating. For instance, a tenant may ask you to lower your asking rate for a longer lease period. In this case, a lower rent may be acceptable for the assurance of renting out to a reliable tenant and avoiding the cost of any extensive renovations.
Spruce up the property
People will pay a higher premium for a property that looks good. A simple deep clean and painting job can make a huge difference.
You can go beyond the general sprucing up by investing in some serious upgrades. For instance, invest in modular fittings in the kitchen or install well-done cupboards in the bedrooms. Furnished flats command a higher rent. You can also invest in home appliances like AC units or embedded devices like smart door locks. These upgrades should be viewed as long-term investments in raising the value of your property.
Retrofit with energy-efficient solutions
A home that helps a tenant cut energy consumption will command a higher rent. An independent house such as a villa or a row house is easier to retrofit with solutions like solar panels and insulated roofs. Even apartments can have simple modifications like window glazing or installing mesh doors and windows. You should also take advantage of other facilities in your gated community, such as getting a piped gas connection for the kitchen.
Vacancies are one of the costs of being a landlord. Other than the loss of rental income, also consider the cost incurred in looking for a new tenant. This is why renegotiating with an existing tenant is preferred. You can also look for tenants who want a long-term lease.
You may want to charge a high rent but is your prospective tenant capable of paying it every month? Screening a tenant is important to ensure that your tenant is not misrepresenting his/her income.
Reduce your EMI cost
Far too often we think of our home loan as the non-workable part of our debt with terms that cannot be changed. However, as with everything, your home loan can also be renegotiated. You can explore refinancing with lower interest rates. However, you may have to meet certain eligibility criteria to qualify.
You can explore other options, such as bargaining for lower interest rates based on your credit score, tenure extension, or part prepayment if possible. If you are just applying for a loan, you can also check out hybrid loans with a fixed rate for the initial few years followed by a prevailing floating rate of interest.
Take advantage of tax cuts
To get the most out of your rental income, you have to reduce your tax obligations. Check all your deductibles including the property tax and home loan interests. You can also claim up to 30% deductions for renovations and repairs.
Use a different rental strategy
Looking for a reliable tenant can be very challenging as well as resource-consuming. Altering your rental strategy can do the trick if you find yourself hitting a wall in your own efforts. ApnaCompelx Rentals ensures that you can get the best deal. You can list your home and get personal assistance from an Estate Portfolio Manager. You can also benefit from the following:
- Freedom from site visits saves your time and effort.
- Negotiation support to help maximise your rent.
- Assistance with a rental agreement to ensure that all the terms are hammered down.
- Offers on services like cleaning and painting on the ApnaComplex app.
- Tenant KYC and background check to ensure reliability.
Here are some more smart tricks you can try to boost your rental income. If you want to know more about ApnaComplex one-stop rental management services, call us at 0120 71173344 or write to us at firstname.lastname@example.org