Are you planning to buy a rental property? Do you have a lot of questions in your mind? Once you step out for a survey you will get a lot of options waiting for you, don’t get confused by thinking about all that options. First you need to understand the basic features of a rental property then only you will be in a better position to match the provided characteristics with your own requirements. Buying a property only because you like it will be a fool decision; instead you should get proper knowledge of the features of that property and then take the decision of buying it. Now, let us concentrate on few important features of a rental property which needs to be known before buying it:
There is a strong trade off between old property and maintenance charges. If you want to buy a well built old property in a good locality then you have to bear with the high maintenance charges of that property since it may requiring a lot of touch ups. But, if you are thinking that you have selected a new construction and will not have to spend more on maintenance charges, then you are largely mistaken because these days even new construction sometimes requires heavy maintenance charges due to its poor quality construction. Thus you have to be wise in your decision of choosing the Commercial Property in Delhi NCR considering its age and condition properly. Otherwise you will not be able to make good profit.
If you plan to rent your newly bought property then the size in square foot as well as number of bedrooms are two important features to be considered because this will affect the nature of tenants and the amount that they are willing to pay as rent.
This the most important feature for a rented property because it has various forward and backward linkages attached to it. These may include safety, desirability, vacancy rates, resale ability, appreciation potential, tenant quality, price, price-to-rent ratios etc.
4. Price and Rental Income:
The price is also an important feature because the first and foremost thing to consider while buying a rented property is your affordability and then comes the rent you will be able to fetch from that property. The question here is whether or not you will be able to earn profit from that. The rental income needs to be high enough in order to bear the expenses as well as cover the price of that property.
5. Appreciation Potential
This is a feature which matters to some specific clients who are buying a rented property in lieu of earning from rent as well as from its appreciation in a specific period of time. So if you are thinking about the increase in property’s worth in a specific period of time then do consider it’s potential in that area before buying one.
Now since you are aware of 5 critical features of a rented property then you must consider all these keeping in mind the finance you have and profit you are expecting from that property before buying such a property.