Smart ways to maximise your rental income

Rental properties can help you earn extra money, but you want to make the most of them. There are easy ways to increase your rental income and attract more renters. Simple improvements, like painting walls or upgrading appliances, can make your place more attractive. Setting the right rental price and offering flexible lease options can also help you stand out. In this article, you’ll find smart tips to help you make more money from your rental property.

Leverage tax benefits

Maximising your rental income in India can be easier with smart use of tax benefits. One way to do this is by claiming a standard deduction of 30% on your property’s value, which helps cover maintenance costs. If you took a loan to buy or build the property, you can deduct the interest you pay, and there’s no limit on this for rented properties. 

Additionally, the municipal taxes you pay can also be deducted, lowering your taxable income. If the property is co-owned, splitting the rental income can help each owner fall into a lower tax bracket, saving money on taxes. You can also deduct costs for repairs and maintenance, as well as claim a deduction if your property is empty for a while. If you paid interest on a home loan before construction was finished, you can claim that amount in five equal parts once the construction is complete. 

Adding attractive features to your rental, like furniture, can help you charge higher rents and come with tax benefits too. Finally, careful tax planning can help you decide when to buy a property or how to own it, helping you make the most of your deductions and keep your tax bills lower.

Alternative rental strategies

To increase your rental income in India, consider trying different rental strategies. One option is to use platforms like Airbnb for short-term rentals, which can often earn you more than traditional long-term leases, especially in busy tourist areas. You might also think about offering your property as corporate housing, appealing to business travellers who often pay higher rates. Another idea is to create co-living spaces by renting out individual rooms, which is popular among young people and can bring in more money than renting the whole place to one tenant. If you provide furnished rentals, you can attract tenants looking for convenience, especially expatriates and students.

If your property is in a tourist spot, turning it into a vacation rental can be profitable, especially during peak seasons. Rent-to-own agreements can also work well, allowing tenants to rent now and possibly buy later, creating steady income and a potential future sale. If you’re near a university, consider student housing, as students often prefer shared living, which can increase your earnings. Allowing pets can attract more tenants and enable you to charge higher rents. If your property is suitable, think about renting it out for events like weddings or parties, which can bring in extra income.

Lastly, offering flexible lease terms, like month-to-month options, can appeal to those needing short-term stays and can justify higher rental prices. Using technology like property management software can also help you manage bookings and payments easily, reducing empty periods and improving tenant satisfaction.

Regular maintenance

To boost your rental income in India, keeping up with regular maintenance is key. This helps your property stay appealing to tenants, lowers the chances of long vacancies, and cuts down on expensive repairs. Start by doing preventive maintenance, which means checking for small problems before they turn into big ones, like fixing leaks or making sure appliances work well. Addressing repair requests quickly also keeps tenants happy, leading to longer lease renewals and fewer vacancies.

Upgrading to modern fixtures and energy-efficient appliances can make your property more attractive, allowing you to charge higher rent. Keeping common areas clean and maintaining the landscaping improves curb appeal, making tenants more interested in your property. A fresh coat of paint and minor aesthetic upgrades can also boost your property’s attractiveness, as neutral colours appeal to a wider range of people.

Safety and security are important too, so regularly check security systems and smoke detectors to provide a safe living space. This can help you charge more for added security features. Regular maintenance ensures your property meets local laws, avoiding fines and legal issues that can cut into your income.

Keeping records of all maintenance work is essential, as it can help with taxes and future planning. Encourage good communication with your tenants about any maintenance issues, as this can prevent minor problems from escalating. Finally, if you have multiple properties or are short on time, consider hiring a property management company to take care of inspections, repairs, and tenant communications. This ensures everything runs smoothly and helps maximise your rental income.

Offer additional amenities

To increase your rental income in India, adding extra amenities to your property can make it much more appealing to potential tenants. For starters, providing high-speed internet and cable TV can attract tech-savvy renters who value connectivity and entertainment. Offering fully furnished apartments is another great idea, especially for expats, business travellers, or students who don’t want to buy furniture.

Upgrading your kitchen and bathroom with modern fixtures can also raise the rental value, as tenants are often willing to pay more for stylish, well-maintained spaces. Security features like CCTV cameras and secure entry systems can make your property more attractive, particularly in urban areas, since many people prioritise safety.

If you have parking available, be sure to highlight that, as it can be a big selling point in crowded cities. Amenities like a gym, swimming pool, or community hall can appeal to families and young professionals looking for an active lifestyle. Being pet-friendly can attract a larger pool of tenants, allowing you to charge a bit more for pet accommodations.

Energy-efficient appliances can also reduce utility costs for tenants, making your property more attractive while helping them save money. Having laundry facilities, either in-unit or shared, is another convenience that many renters appreciate, especially in areas without easy access to laundromats.

If you have outdoor spaces like a garden or balcony, consider enhancing them with seating and lighting to create inviting areas for relaxation. Incorporating smart home technology, like smart locks and lighting, can attract tenants who appreciate convenience and modern living. Lastly, offering housekeeping services can appeal to busy professionals who are willing to pay extra for a little help with cleaning. All of these amenities can justify higher rental rates and make your property more appealing to potential renters.

Screening tenants

To make the most of your rental income in India, thoroughly screening tenants is essential for a hassle-free experience. Start by understanding the legal requirements, such as the Rent Control Act, to ensure you know the rights of tenants and your responsibilities as a landlord. It’s important to treat all applicants fairly, avoiding discrimination based on factors like religion, gender, or marital status.

Next, create a comprehensive rental application that collects personal details like names and IDs, along with proof of income, such as payslips or bank statements. This helps you verify that they have a stable job and can afford the rent. Checking rental history by asking for references from previous landlords can provide insights into how responsible they are.

Conducting background checks is also vital. Look into the applicant’s credit score through services like CIBIL and check for any criminal records through local police verification. A quick look at their social media can offer additional clues about their lifestyle, although this isn’t always reliable. Meeting the prospective tenant for an interview can help you assess their suitability better. Make sure their answers during the interview match the information on their application.

Verifying references is crucial, too; contact former landlords to learn about the tenant’s payment habits and how well they maintained the property. Check with their employer to confirm job stability and income. Set clear criteria for screening, like requiring tenants to earn a minimum income that covers the rent comfortably, and establish policies regarding pets and occupancy limits.

Using a standardised process for screening all applicants can help ensure fairness and keep good records of each application and the results. Consider hiring professional tenant screening services to perform detailed checks and consult with legal experts to ensure your process follows local laws. Lastly, draft a clear rental agreement that outlines all terms, including the rent, due dates, and the conditions for returning the security deposit. Regularly reviewing and updating your screening practices based on feedback from current tenants and changes in rental laws will keep your process effective and up to date.

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