By Namrata Kohli
How can a landlord get the best returns for his property in a slow market? A little bit of effort, time, and money spent in the right direction will go a long way in ensuring that you get better than expected returns.
There is little one can do about the location of one's property and its direction - sunfacing or west-facing - once the purchase has been made. But there is enough room for improvement inside the house and one can play around with features inside the four walls. It's important to keep the focus right, straight and simple, and to know where to invest and where to save.
The more functional you can make your property the better rent you can ask from your prospective tenant. Imagine that you are going to stay in that house, ask yourself what additions would make your stay in it more comfortable? There is no point in spending a lakh on a chandelier - a tenant is far more impressed by a good modular kitchen, storage space, shoe-rack, and other practical add-ons rather than superficial fancy features.
Storage is a big issue in any house and, if it is an apartment, it can never be overemphasized - so build a new loft to increase the storage space in your property. Investing in airconditioners is a great idea. Adding a chimney to your kitchen can be a good addition to keep the smoke away from the house. The more one can make prospective tenants feel that their needs are met, the more rent one can expect.
An obvious thing for landlords to do, but which they sometimes overlook, is repair work. Repair is necessary to keep the property in habitable condition. It could be about replacing cracked floor tiles or repainting a room to repairing the roof to something as basic as changing the door knob!
Amrita Bhargava, a media professional, speaks about how she can never forget the nightmare of seeing the conspicuous seepage on the wall of a sample flat by a prominent city builder! Impressions like these should be totally avoided - always show a spruced up house to your prospective tenants. Painting the walls is a must and part of the 'hygiene' factors. It is advisable to choose neutral colours like beige or lemon or cream as wall paint, as they safely match with any type of furniture and furnishings brought by the tenant.
Home improvement, which is more intensive than repairs, yields good returns. These improvements involve greater cost but they also extend the life of the property and upgrade it. This includes adding central airconditioning, installing a security system, replacing all existing electric items or renovating the kitchen.
Alex, VP marketing of Greenply, says: "Landlords should make discreet choice of where to spend - especially in plaster of Paris (POP), an investment of roughly Rs 30,000; whitewash, costing around Rs 70,000; woodwork in the rooms, costing around Rs 3 lakh, as well as creation of kitchen storage, better modular kitchens, which will cost anything between Rs 50,000 and Rs 2 lakh. Investment in sanitary wares will go well with most occupants and this will cost the house-owner anything between Rs 50,000 and Rs 2 lakh. With all this in place, you can safely expect 20-25 per cent premium over the market."
There are some things for which the tenant is willing to go an extra mile and pay a premium. Working couples with kids will find the facility of a creche or kid's play area very attractive and may choose one apartment over the other, solely over these facilities; again things like having a separate service lift and separate room for maids and drivers is attractive to another set of buyers and they may choose one condominium over the other, based solely on these criteria.
Manu Garg, director of LandCraft Developers and vice-president of Credai, Delhi NCR, says he has a checklist that he bears in mind while designing or structuring an apartment: "Storage space is very important. Also, the kitchen needs to be spacious, with lots of cabinets. A balcony attached with each room is a desirable feature for occupants. A separate room for the drivers or the maids and wide lifts in multi-storey buildings is another feature that attracts homebuyers. Security is vital."
To reap good returns on your house, you have to invest but invest wisely. Else you may receive an endearing letter, like my friend, who received one from her tenant: "Writing on behalf of my sink, which is running away from the wall..."
source:- http://economictimes.indiatimes.com/spruce-up-your-house-earn-great-rentals/exposhow/21455958.cms
How can a landlord get the best returns for his property in a slow market? A little bit of effort, time, and money spent in the right direction will go a long way in ensuring that you get better than expected returns.
There is little one can do about the location of one's property and its direction - sunfacing or west-facing - once the purchase has been made. But there is enough room for improvement inside the house and one can play around with features inside the four walls. It's important to keep the focus right, straight and simple, and to know where to invest and where to save.
The more functional you can make your property the better rent you can ask from your prospective tenant. Imagine that you are going to stay in that house, ask yourself what additions would make your stay in it more comfortable? There is no point in spending a lakh on a chandelier - a tenant is far more impressed by a good modular kitchen, storage space, shoe-rack, and other practical add-ons rather than superficial fancy features.
Storage is a big issue in any house and, if it is an apartment, it can never be overemphasized - so build a new loft to increase the storage space in your property. Investing in airconditioners is a great idea. Adding a chimney to your kitchen can be a good addition to keep the smoke away from the house. The more one can make prospective tenants feel that their needs are met, the more rent one can expect.
An obvious thing for landlords to do, but which they sometimes overlook, is repair work. Repair is necessary to keep the property in habitable condition. It could be about replacing cracked floor tiles or repainting a room to repairing the roof to something as basic as changing the door knob!
Amrita Bhargava, a media professional, speaks about how she can never forget the nightmare of seeing the conspicuous seepage on the wall of a sample flat by a prominent city builder! Impressions like these should be totally avoided - always show a spruced up house to your prospective tenants. Painting the walls is a must and part of the 'hygiene' factors. It is advisable to choose neutral colours like beige or lemon or cream as wall paint, as they safely match with any type of furniture and furnishings brought by the tenant.
Home improvement, which is more intensive than repairs, yields good returns. These improvements involve greater cost but they also extend the life of the property and upgrade it. This includes adding central airconditioning, installing a security system, replacing all existing electric items or renovating the kitchen.
Alex, VP marketing of Greenply, says: "Landlords should make discreet choice of where to spend - especially in plaster of Paris (POP), an investment of roughly Rs 30,000; whitewash, costing around Rs 70,000; woodwork in the rooms, costing around Rs 3 lakh, as well as creation of kitchen storage, better modular kitchens, which will cost anything between Rs 50,000 and Rs 2 lakh. Investment in sanitary wares will go well with most occupants and this will cost the house-owner anything between Rs 50,000 and Rs 2 lakh. With all this in place, you can safely expect 20-25 per cent premium over the market."
There are some things for which the tenant is willing to go an extra mile and pay a premium. Working couples with kids will find the facility of a creche or kid's play area very attractive and may choose one apartment over the other, solely over these facilities; again things like having a separate service lift and separate room for maids and drivers is attractive to another set of buyers and they may choose one condominium over the other, based solely on these criteria.
Manu Garg, director of LandCraft Developers and vice-president of Credai, Delhi NCR, says he has a checklist that he bears in mind while designing or structuring an apartment: "Storage space is very important. Also, the kitchen needs to be spacious, with lots of cabinets. A balcony attached with each room is a desirable feature for occupants. A separate room for the drivers or the maids and wide lifts in multi-storey buildings is another feature that attracts homebuyers. Security is vital."
To reap good returns on your house, you have to invest but invest wisely. Else you may receive an endearing letter, like my friend, who received one from her tenant: "Writing on behalf of my sink, which is running away from the wall..."
source:- http://economictimes.indiatimes.com/spruce-up-your-house-earn-great-rentals/exposhow/21455958.cms
agrees completetly
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