You have earned a pretty good salary and thought of purchasing your own house. Now, with another property down the lane, you might want to give this old one up for rent. If you are bringing your houses for rent for the first time to the market, you need to set a price for the rental. Multiple factors impact the rental value, and before putting up the house for rent, you must acquaint yourself with the same. It will help attract prospective tenants to your place and will further help generate some income at the same time.
Always aim for the rental rates:
The rental yields of the houses for rent will vary between 2.5% and 3.5% of the property’s current market value. But there are some instances when the valuation might differ, owning to demand and the supply disequilibrium.
- If you have the property registered in such a category where the demand is high, but you witness limited supply, then the rental rate can hike up as high as 3.5% of the property but won’t exceed more than that.
- On the other hand, if the demand seems low, the rental rate of houses for rent has to be around 2.5% of the entire property value.
Understanding the property’s market value:
When putting a house on rent, you must also acquaint yourself with its market value. For this, your market value is considered the property’s main value in respect to some of the underlying forces. There are various factors that will impact the property’s market value, like infrastructural development.
- For example, any park, metro line, or flyover being developed will potentially appreciate the current value of the houses for rent. It will result in a higher rental rate in the near future when the construction is done.
- Moreover, there you have higher chances that the present market value might decline because of certain factors like a decline in circle rates, stalled infrastructure projects or even an increase in pollution level.
- So, it is always mandatory to know the property’s present value. If it becomes a bit hard for you to determine the quote of your property value, you can always catch up with a property appraiser to know the property’s perfect cost.
The layout and amenities of the properties can change the price value as well:
Layout and amenities are two other major factors to consider while focusing on the houses for rent. Remember that 1000 square feet of 1 BHK flat will always have a lower rent when compared to 2 BHK flats of the same space. It is mainly because the layout here provides more independent space.
In the same way, the amenities will determine the final rental score on a property as well. For example, a 1000 square feet apartment located within a gated community with a swimming pool, clubhouse, gum, and enclosed car parking will always cost higher when compared to an apartment in a single building.
The internal facilities and fixtures to follow:
With that modular kitchen, wall cupboards, appliances, and storage spaces, the houses for rent will always command a higher rent. So, if your place has these facilities, you have to focus on the said rate accordingly. The more you get to research the facilities, the higher will be the rent value here. So, keeping a check on these points is also very important before you finalize the exact rent of your place in the end.
Check out the market:
To get a clear idea of the market, research is your only helping hand. It will help you know where your property exactly stands and the results over here for sure.
These are some of the key parameters that you must consider when you are planning to put a house on rent. Make sure that you do the research and then put your house on rent.