Did you know that certain methods can be used to add value to a property, create demand, and provide you with a chance to increase rent? Here are a few key points shared by TheHouseMonk.
1) Shared Accomodation
If you have a multi-room unit, the rent will be high. Higher the rent, higher the difficulty in finding a tenant. To overcome this you can set a rent for each room and rent them out individually rather than giving the entire unit to 1 person.
Assume that a 3 bhk furnished flat is rented out for Rs. 35,000. The same flat, when rented on a shared accommodation basis, the rent for each room can go up to Rs. 15,000 (say). This will earn you an additional Rs. 10,000 when compared to non sharing basis.
2) Reduce Deposit
Many people shifting to a new city don’t have enough funds to pay a high security deposit. In such cases you can consider increasing the rent and reducing the security deposit.
If the security deposit of a 3 bhk is around 2 Lakhs and the rent is 30k, you can consider reducing the deposit to 1 Lakh and increasing the rent to 35k
3) Short Term Rental
Providing flats for short term rentals using websites like Airbnb has proven to be more profitable than giving it on a long term rental.
Imagine you are renting out a 3bhk unit on a long term basis for Rs. 30,000. On a short term basis, the rent for the same flat will be Rs. 3,000 per day (approximately) and by end of the month it will sum up to Rs. 90,000. Even with 50% occupancy, you will still be able to earn more than what you can on long term rental.
4) Change To Commercial
Converting the unit into a commercial space will allow you to increase your rent by a substantial amount. With the increase in startups, such commercial spaces are in high demand. A residential flat can be converted to a commercial unit just by changing the water and electricity bill to commercial tariff.
NOTE – This tip is more useful for independent houses than apartments
On a residential unit you will be able to earn up to Rs. 30,000. The same unit, when rented on a commercial basis, rental income can increase up to Rs. 40,000.
5) Providing Furnished Flats
People are starting to prefer furnished flats. This is more evident when it comes to bachelors and young couples when shifting to a new flat.
Some of the features that can be provided are:
- A ining table, sofa(s) and cots
- Wi-Fi facilities
- Provision for air conditioner
- TV, fridge, Washing Machine and Microwave
- Cable connections for TV
Provision of these facilities helps tenants to adapt to the new environment easily. Hence their preference towards such flats also increases.
6) Freshly Painted and Cleaned
Studies have shown that tenants are more likely to take a freshly painted and clean house, than a house that has not been cleaned. This is because the features offered by the flat are more evident in a clean house making it easier for the tenants to decide.