The real estate business has seen many up-gradations over the past few years and whit those additional segments to the real estate business, it has turned out to be world’s largest investment market. The market has spread so far that even the farmers have become active investors in the market. This huge change has been because of many factors such as need, profits, returns, low risk, and many more. We have been greatly influenced by the real estate market and now the trend of the investors is moving towards the Renting Real Estate Business.
The Renting Real Estate Segment has attracted a lot of crowd towards itself. The renting business in the market has become popular and also because of its regular profits small and new investors are the major crowd opting for the rental real estate business. So what makes the renting real estate business different from other real estate investments?
The common real estate investments start by selecting a normal property and then they end up when those are sold after couple of years with some healthy profit margins. Here the profit is made but the investors have to wait for a specific time period. Big investors who are there in the market and have ample amount of money can wait for a longer time period, but those who can invest limited and need profits or returns in short time period, the rental real estate is the perfect suit for there need.
In the rental real estate investment the investor has to look for a property that can be set as rented in the market, so that means the property should be connective to the needful places such as , markets, hospitals, bus stands, airports, railway terminals, etc. which means the property should be somewhere in the city. When you have found the right suiting place then you need to purchase it. Now here the trick starts, you need to renovate the property and invest a bit more then when you make it available as a rented property in the market then you will easily get clients who would agree to stay and give you monthly rents.
When you get a small yet handsome amount of money you can easily set up any desired business as you already have constant backup at your back. So this is one of the main reasons that why people who need fast returns or who wants to set a business on the solid basis of investments are trending towards the rental real estate. The real estate business has always been fruitful for the once who makes an investment but with proper research and proper understanding and the people who are not aware of all these circumstances fall into wrong places and experience heavy loss due to insufficient knowledge of the field. So to make an entrance in the real estate world and to start up a business career the rental real estate is the best place to invest in because it will give you results in no time.
One of the most common things brokers and sellers talk about is how to further increase a property’s value – specifically residential houses. Who would settle down selling cheap? Good thing, there are certain ways to force it up by doing some of these quick, practical, and simple actions. These actions are practiced by brokers of Marbella Real Estate, which has been proven to be effective.
Make More Space
Our first tip to increase the worth is by trying to make more space or floor area – whichever part of the house. The more spacious it is… the better. So, you can remove those non-structural walls, those kitchen islands, and anything that hinders a good open space without compromising important functions. It will only cost a few hundred dollars but it can provide an increase of up to 5% of the overall value. Clients with bigger wallets are attracted to this as they can freely customize it without any hassle.
You don’t have to be an expert and you can actually do this yourself if you have what it takes – or invest around another few hundred dollars and have a return of three to five times the amount invested. How? By just trimming and pruning those unattended plants, bushes, trees. Doing so can further provide a better view, lighten the interiors, and will give better aesthetics on the property. And, it can also save you from extra expenses in the long-run as nature may sometimes go wild and can cause some serious damage to the house (molds are one common thing).
Repaint Using Neutral Colors
Remember, you are now selling your property and buyers would love to have a house where they can freely customize on their own with their personal likings. So, don’t be indulge by your own preference, stick to colors that are neutral – like plain white. That way, it attracts and can even hasten the selling process. A new paint job will also give a good increase in value and a nice review.
If you’re used to with having a darker interior, again, change that. Buyers are more appealed to having a more vibrant ambiance – turn on the lights. Replace old bulbs with brighter and better ones. Clean the windows to avoid hindering sunlight from the outside. Remove dark curtains. This way, you can let them see every inch of the house and give them a more secure and comfortable feel. You’ll be surprised how fast you’ll be actually selling when you do this.
Fix the Little But Important Things ASAP
This is what a lot of sellers tend to forget. They forget to do those simple plumbing repairs such as leaks, they don’t mind the rusty gutters with some holes on it, they don’t care about the leaky windows, they forget to insulate the attic, and many others. These little things will go a long way of increase in total value of the house, thousands of dollars for a couple of bucks. So, making sure that before you do silly upgrades here and there, prioritize the simple but important repairs and it may even add a better worth than any upgrade you have in mind.
When you have decided to make your first real estate investment in the rental segment then you need to work a lot from the very first day to execute your investment plan. The real estate renting market is generally for those who need to set a regular small business, more over the rental real estate is also known as ‘Income Property’. For buying a rental investment property you need to do certain planning and also you need to keep certain things in mind before you come out in the field. So let us see the important factors that matters the most while investing in the rental segment of the real estate.
Important Factors that affects the Investment in Rental Real Estate Market:
- Start your search as soon as possible-
If you have decided to buy a rental property from the real estate market then you need to start your searching of the property at the earliest. Don go for local brokers, the best option for searching the property is to take references from the other known persons such as co-workers, family members and friends. By doing this you will be saving time as well as money which rather you could have given to the local broker.
- Taxes of the property-
The tax rate of a rental property is not the same in every area, so when you look for the properties then gather information about the taxes that you need to pay upon the property. If in case the tax rate is too high and the rent coming is low then you will be in a situation of loss.
- Look for nearby areas-
When selecting a rental property the very most important thing that you need to keep in mind is to look your neighbors and the nearby areas, if you have good neighbors and there is a school, market or a university near your rental property then it becomes as a positive sing and more over the chance of filling your rental property with people becomes a surety.
Crime plays a big role in purchasing a rental property, if there are many criminal activities in the area then it will be very difficult for you to find out long term clients for your rental property. People feel unsafe and unsecured if these things happens around them and more over they tend to leave the place as soon as possible. So look for a crime free place.
- Natural disaster-
If in case you have selected an area more open to the natural disasters then you need to insure your rental property with a bigger amount so that in case such thing happens in future then you will be getting your valuable money back.
- Gathering information and making a deal-
When you have searched a rental property by keeping in mind the above aspects then you need to gather information and papers of the rental property and search it legally then after that when the things are crystal clear then you need to make a good profitable deal in the Real Estate Renting Market.