The Calicut rental property has seen tremendous growth. The number of people occupying Calicut rental flats and other rental properties such as shops has grown by leaps and bounds.
Real estate has created millionaires. As a result, many people think that rental property is a sound investment. However, just like any other investment, there is need to under the basics, dos and don’ts of the rental property market.
There are houses, apartment, villas and independent houses available for renting. There are houses ranging from one to five or more bedrooms. Some of the houses are furnished. The amount of rent varies depending on the location and type of rental properties available. For instance, villas are more expensive compared to one-bedroom apartments.
While looking out Calicut rental property, there are some aspects one should consider. Do not rent a property blindly.
Here is a beginner’s guide to buying the best Calicut rental flats and rental properties.
Is Rental Property A Best Option For You ? In Calicut ?
Can you repair a dry wall? Would you unclog a blocked toilet? It may be easy to assume that a plumber will do it for you. However, involving a plumber may eat into your profits. Property owners will several properties will tell you how they get their hands dirty. If you are not willing to get your hands dirty, being a landlord may not be right for you. However, for more technical issues, it is not wrong to involve a professional.
Finding The Right Location
The location of the Calicut rental property and rental flat matters a great deal. Tenants are choosy people, and they want to get value for the money. Get a property near social amenities such as schools, mosques, churches and shopping malls. Additionally, get rental properties in areas with low crime rates.
Do your homework
PLEASE do not skip this step. As soon as you decide to buy Calicut rental property, it is natural to start shopping for homes. However, before all that happens, you need to ask yourself some questions.
- What kind of investment property do you want ?
- How much can you afford ?
- What is your desired neighborhood ?
- The average expected rent in the area ?
- What kind of investment return do you hope to make ?
Answering the questions as honestly as possible will influence the kind of decisions you make.
Plan and develop criteria
Write down your plans and goals. It is easy to get distracted. For instance, your plan may be to get hostel rooms for students, but that single family home with a beautiful garden may distract you. Writing your goals down will hold you accountable to your goals.
Most Calicut rental property buyers make a mistake; they start searching for rental properties without considering how the will finance it. It becomes heartbreaking for them when they identify their dream property, but that cannot afford it.
Before shopping for any rental properties, talk to your bank. Also, consider other real estate financing options before making a decision.
Before making the offer
You have identified the Calicut rental properties you want own, and it is now time to make the deal. For starters, expect a lot of paperwork. Additionally, it is important to learn some proper negotiations skills.
Spend an amount that makes sense while making a closing deal on rental properties. Do not let emotions override your numbers. Pay the amount that makes sense to you.
It is important to note that price is the factor to consider. Other factors to consider in the offer include:
- Inspection contingency
- Financial Contingency
- Closing date
- Seller financial concessions
The Reality Of Owning Calicut Rental Property – Factors !
Rental property investors hope that they will make their best outcomes within the first month. The truth of the matter is that it does not work that way. While the first month might not be a disappointment, there are few things Calicut rental flat and property owners should keep in mind.
- Rental properties may suck the wind at first
For instance, if you are dealing with an old property with existing tenants, you need to be patient. You may be dealing with deadbeat tenants, and undone repairs are some of the possibilities. The rule of the thumb is not to assume that the seller has told you everything about the rental properties. Leave some room for error while evaluating the deal.
- Have a cash reserve for emergencies
Create a cash reserve for about six months and maintain it. Use the money to cover unexpected cases such as repairs.
- Save for maintenance always
It is necessary to save for maintenance especially if the Calicut rental property is over 50 years old. The older the rental property, the higher the maintenance cost. If you do not make such savings, they will affect your cash flow income.
- Running the numbers
One important factor Calicut rental property owners must do while evaluating the rental properties are projections. What are projections? They are a series of informed guesses about the profitability (or lack of it) of the rental property in future.
To make out well- guessed projections, you need to have a proper understanding of the likely income and expenses expected from the property.
Does it sound like rocket science to you? Well, it is not that difficult. There are several crucial aspects the investor must consider. Some of the factors that affect the profitability of rental properties include:
- Paying a too high price
- Excessive taxes and interest expense
- Unforeseen disasters
- Insurance costs
- Maintenance, upkeep, and utilities
To come up with the possible guess of the projections, you need to have the right information. Determine factors such as the amount of rent revenue, the purchasing price, and factor in all other expenses such as advertising, insurance and property tax.
The bottom line is ensuring that your expectations are realistic. The rental property will not give you large paychecks in the first month. However, choosing the wrong rental property will have catastrophic effects. If possible, consider working with an experienced person.