Bangalore is known for helping both who want to take houses on rent and those who wish to become a landlord. Whether it’s about luxury villas in Whitefield and Thanisandra or in some other promising location, before you become a landlord, you must follow a certain path in order to succeed. There are some set of rules investors follow when they buy a property in the Bangalore real estate market. Read on to check the things you must know before jumping into the market.
Know that there is no magic. If you wish to buy a luxury villa In Whitefield, Bangalore and think that soon after buying it, you’ll get a tenant and will be collecting cash each month, things don’t work in that way. Being a landlord means you are not just a money maker, you need to make sure that the property is ready for tenants and you are going to earn what you are investing. It is not going to happen in a day, but make sure that you are following a strategy.
If you are taking a loan to buy the property, make sure that you’re ready with the down payment and if you can increase it, do that. Don’t exclude the rental income from the overall investment strategy. Like many other landlords, you should aim for at least 5% return on the investment. To do so, you’ll need to buy a property in a promising location where people actively look for rental properties and are also ready to pay the amount you will be asking for.
Don’t neglect the overall growth of the area because, in the coming months, you will be planning to increase the rent which will not only help you get more return on the investment, but it will also help you pay the rising property tax. If you buy a property in a location where the demand for rental properties is less, you may find it hard to get good tenants. Keep at least the next five years in mind when you make a purchase decision.
From Airbnb to open market, there are people who are ready to pay rent for luxury villas in Bangalore, but you must make sure that whatever decision you take, it must be a part of your investment strategy. Renting out is always easy, but make sure that you keep safety and security in your top priorities. If you don’t want to hire a property manager, just make sure that all the agreements and lease papers state what you want and what’s right for your property. Screen tenants, meet them and keep visiting the property as many times as you can. Enforce that the rent must be paid on time and clarify about who will be accountable for maintenance and other expenditures.
There are specific laws for landlords, so make sure you read and follow them. Your investment in luxury properties in Bangalore must bring peace of mind to you. Consult with a real estate developer in Bangalore and make sure that you are investing in the right location and the right property.