A topic often agreed on by people living outside of Kathmandu – having a house near busy streets alone is a great way of generating more income than most jobs can offer. Without a doubt, homeowners have been making thousands, if not lakhs just by sitting back and renting out their houses. If you have a spare room or a flat that you’re willing to rent out, these tips will get you started:
1. Be Picky about Tenants
We often hear people preferring nurses, students or married couples while choosing tenants. A popular opinion is that these professions often ensure that the tenant does not disturb the other tenants and the homeowner. Take your time when choosing a tenant because if you end up with the wrong one, you’ll be regretting the decision later.
2. Invest in Repairs
You might have a whole flat at a reasonable price but there are hundreds of other options available to the potential tenant. Whether you like it or not, you’re in competition with other homeowners near your area. Investing a small amount which can drastically improve the living standards of the flat or room you’re renting can be a plus point which ultimately makes the potential tenant choose your home over others.
3. Set a Reasonable Rent
Some people make the mistake of charging too much for rent just because they think they’re doing the tenants a favour by allowing them to stay at their beloved residence. But the truth is that what you’re doing is running a business and letting emotions in the way of pricing your rent can scare off tenants. Do a little research around the neighbourhood and set your rent according to the standards you have.
4. Follow the Law
You must have legal documentation of the income that you are generating with your property. Just like everything else, you will be taxed on the income you make and ignoring such responsibilities toward the nation might get you in trouble.
Now that you’re ready to get your first tenant, sit back and appreciate the power of owning real estate in a busy city. Share this article if you found it useful!
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Published on 13, June 2017 by Nishant Acharya