Author: Valentine Kondo
I dreamt of being a successful landlord and a businessman in the real estate sector when I was younger. Now, I am not sure of either. Reason being that the returns from the rental houses are meager according to one, Mr. Hezron.
Without a doubt, I would rather be safe than sorry. However, this is a personal opinion.
Here are some of the factors that affect the monthly rental rates
Allowance in the property
If you are the type of landlord who wants to maximize on every reserve land meant to be an extra space for tenants, then your property might be experiencing some tenant outflows as opposed to inflows. Just like myself, I would rather be safe with my kids’ extracurricular activities than see them grow in obesity. For my love of pets, I would consider getting a property that has some space where my four-legged friend can busk and play.
Therefore, the presence or lack of this will greatly affect monthly revenue rates.
Bedrooms in the property.
It is evident that big and financially stable families would prefer more than two bedroomed apartments as opposed to single and one bedroomed ones. Consequently, the number of bedrooms contained in your house will directly affect occupancy.
The higher the number of bedrooms, the greater the monthly turnover rate and vice versa.
Inclusion of utilities
We are living in an era where everything we see, want, eat, or use has to be served by the presence of the above.
Utilities such as electricity, water, gas, and the internet have become so essential that people…almost all prefer rentals equipped with them.
Millennials would prefer going for a house with a Wi-Fi connection as opposed to a non-equipped one. This is true! Therefore, the inclusion of the above utilities will define how cheap or expensive the rental property is.
When I grew up, my father had rented a 4-bedroomed house with an underground garage, backyard, parking and extra space for storage. With no doubt, even the blind would have not doubted that he scoffed a lot of money to be in the property.
Therefore, like a landlord or property developer, you would want to have a property that gives you greater returns as opposed to the one which does not. These extras will determine your rentals’ monthly rate.
I have promised myself that I will give my family the best of life than the one which was extended to me. Why? When growing up, I used to play in dirty water and mud but never got sick, swam in a dirty river or even in sewages, but without any qualms of getting sick. But try it now, your life would be revolving around hospitals and clinics, medics and herbalists.
To avoid all these in this century, as an investor kindly consider putting up a rental property with amenities such as swimming pools as well as, schools, restaurants, supermarkets, transportation or even laundry in the area.
The presence of the above will determine the pricing and finally the return on investment.
So you know why when you see that landlord is depressed, never should you resolve to ask them why.
In conclusion, I believe with the outlined factors you are able to gauge if you want to venture into the rental business. However, if you are already in the business, look at what you can change to increase your monthly rates.