If you want to get started with rental investing, know that becoming a real estate rentier will not be easy! There are many parameters to consider and we will share the most important ones with you in this article. It actually exists 5 basic criteria for your rental to bring you regular rents and allow you save. Find out how maximize rental income in the lines that follow.
1) The location is strategic for rental investment
The most important thing to make your real estate investment profitable remains property location. You can always remodel and improve the interior of the home, but the location is fixed and you can never change it. SO, placement must be perfect and attract the largest number of tenants.
For example, look at the proximity of public transport, shops, the presence of greenery, leisure and sports complexes, etc. There quality of the overall environment must be taken into account. In short, if you see housing in this place, it’s a good sign!
In addition, it is interesting to have a long term vision. What will the neighborhood become in the coming years? To find out, do not hesitate to contact the town hall for a takeover knowledge of construction projects and infrastructure. If the neighborhood develops in the right direction, its value will increase.
2) The property must meet the needs of the real estate market
You’ve found an attractive neighborhood, but that’s not enough to make your rental investment a success. Now we also need to find the precious pearl, that is, a accommodation that meets the tenants’ requirements as much as possible. Market needs will depend on your geographic area.
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For example, if you find yourself in student area, it will be more interesting to bet on a studio or F1 than on a large apartment. If the area is residential, you can opt for a 2 or 3 bedroom apartment for target families. Finally, you can also buy large accommodations in expensive cities like Paris and offer them to the public. flatsharing.
3) The interior space must be optimized
If you want to maximize the profitability of your rental investment, this is essential to optimize the interior of the property, in terms of its living area and its layout. For example, do not hesitate to change the layout of the rooms so that the accommodation is more logical, tear down the walls redundant for add volume or even add storage furniture. Storage solutions are very popular with residents.
Some work can increase the perceived area of the property, but also the actual area depending on the context. One thing is for sure, the arrangement can trigger a real estate favorite among visitors and that’s the goal!
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More and more owners are getting into furnished rental properties, because this type of rental is interesting for both parties. It actually benefits the owners tax benefits and there it is greater flexibility for tenants. However, a necessary condition for this type of accommodation is the attention you pay to the choice of furniture. As part of renting the furnished, furniture should be modern, functional, in neutral colors and in keeping with the times. You shouldn’t let it interfere with your personal taste because decoration must please as many people as possible.
4) Lease conditions must be attractive
You’ve found the perfect neighborhood and accommodation, but you’ll never be a landlord if you can’t rent it! Now we also need find the perfect tenant. But we will have to pay for it attractive rental conditions attract and satisfy them. You both have to convince your future tenants, but also cover your costs AND create added value. Here are 3 elements to remember:
- Establish a rent that corresponds to the market local. If it is too expensive, you will struggle to rent your property. Conversely, if the rent is too low, you will not be able to gain financially.
- Bring some flexibility in your leaseswhether in terms of duration or deposit, to more easily adapt to the profile of tenants.
- Be fair in fixing common charges between owner and tenant.
To make your rental investment work, you need to rent accommodation as soon as possible. The sooner it is occupied, the sooner it will bring you income. YOU avoid vacancies in the rental and maybe you’ll get closer to your dream of becoming a real estate retiree.
5) Investment in rental requires reactivity
Rental investment is not a long, calm river and owners must adapt to the hazards. The situation can be really unpredictable. For example, you need to be able to handle significant unscheduled work or even manage rental vacancies. In any case, it is important limit financial losses and find reasonable solutions.
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If you have the option, it is ideal to do it work when your accommodation is not occupied. In this way, you will not disturb your tenants, you will limit the risk of departures and you will not disturb your income. If this is not possible, feel free to put a compensation for the inconvenience caused. For example, by reducing the amount of rent, offering to carry out modifications requested by the tenant or beneficial to him.
The real estate market is never stable and owners must constantly adapt to its developments. You have to do that stay informed about news and, if necessary, modify the rental offer. For example, ecological transition is in all discussions at the moment. So don’t hesitate to improve your home from an energy point of view. This can enable you reduce your energy billsbut also to stand out from other accommodation establishments that did not perform this type of work.
By respecting these 5 criteria, your rental investment has every chance of offering you a comfortable and sustainable rent. Enough to get you closer to your goal of becoming a real estate retiree! Do you have any other tips on how to maximize your rental income?
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