Bought a new property recently and got the interiors done? And now want to rent it out, but it’s taking a lot of time. Follow these smart tips to rent out your property faster:
1) Understand that a new property is likely to have many vacancies and hence everyone like you who wants to rent out probably has his or her property listed for rent. The number of home seekers in a new place which is yet to have a vibrant community will also be low. Analyse the market (with new & old properties in vicinity) and understand the real rental rates. Don’t expect too much or rent that is commensurate with the EMI for your home loan in the initial few years as the community is still in a flux and basically it is an evolving demand and supply situation. Higher the supply, lower the demand and vice versa. So peg it at 5% to 10% lower than what you think is the market rate in that locality to ensure quicker success.
2) Having more amenities or a lavish interiors is unlikely to fetch more rental in the initial phase. This is especially true of properties that are far flung or not exactly in CBD. The first entrants to such properties (where an existing community is not there) will be people who are looking for an affordable value proposition. You won’t get people willing to pay a premium till the entire community fills in and the demand supply equation changes.
3) Keep your property tidy and clean when prospects arrive to see it. And ensure you have reasonably good pics of your property online. It not only increases the views for your property (online before they actually turn out) but also helps to attract the prospect during the visit. It also enables them to understand how to utilise the spaces that the property has, optimally. Ensure that you get it cleaned by professionals.
4) Put up furnishing or fittings that are essential. Don’t overdo it because tastes can differ and you don’t want a prospective tenant not taking up the house because they didn’t like something. Essentials may be things such as hot water geysers, gas hobs and chimneys, a modular kitchen etc. that do help the tenant because they are not going to be making those investments into a rented home. Fitting a chimney not only looks like a good home improvement but also helps in keeping your kitchen in better shape. Remember that if you are completely furnishing your home then it may be suitable only for those who are looking at temporary (medium or short stays) accommodation or essentially those looking for a bachelor pad.
5) Choose the right colour of paint (lighter shades) as they make the place look bigger and airy. Remember to not go by your preference but more from the point of view of someone who may rent your house.
6) Ensure you put up your property not only on different classifieds but also publish it in your social circles. Many a time, it may be next door neighbour who may have a prospect or may want to move him themselves.
7) Do not be stuck on a specified rental expectation. The key is to be able to quickly rent it out at a reasonable or optimal rental rate that prevails at that point of time. You could go back to the negotiating table a year later and raise it. However, not renting out has a huge cost that will clearly offset the cost of renting it low. So take judicious calls on this and don’t be swayed by some hearsay (NRI circles) which is not validated.