rental

Think rental income before planning

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One thing that I like apart from my online business is collecting rent.

Although it comes with its own risk. But if you ask me, the reward always overtakes the risk in the rental business.

Every month, by the 10th, all rent is automatically deposited in my bank account without fail.

People who fail to send rent are charged extra for late payment. So again, there will be a reward for that.

I still remember when we first rented our property, which was around 5500rs.

Now we collect rent up to ₹8500 based on how many persons (students) stay (not PG).

Rent actively rises every year. Ours is the student market. That, too, out-of-state students studying in college means you can expect good rent.

So it’s really a good income you can depend on.

If your site is also located in such an area, do think about rental property and its income.

It’s really a good source to depend on.

If you are tight on budget, just inform the engineer in future you will build another 2 or 3 floors and ask him to give a plan accordingly.

Once you get the budget, you can reconstruct & add more floors on the same building.

That’s what we did in our first building. First, we built the ground and first floor. After seeing rental returns, we added the 2nd and 3rd floors again.

We are able to add more floors because we planned for the G+3 floor at the time of planning itself.

If you are good at marketing & technology, you can also reduce the vacancy period.

That means more ₹₹₹₹.

I follow my own system to keep my rental units full always. I will share all my experiments and learning at IndianLandlord.com.

I’m not very active there yet.

I will soon when I have something to share.

If you plan to start or already have rental properties in India, join me at IndianLandlord.com to receive landlording tips.

Arun

Careless Tenants

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In one of our rental units, 500 rs of electricity bill came this month.

But the thing is, no one has stayed in the building for the past 20 days…

Moreover, even if they stay, their electricity bill usually comes to 0 rs because the Karnataka government offers some free units.

The student got suspicious, and we got to know something was wrong.

When the student/tenant was informed regarding the electricity bill issue, we checked to see if the meter reader had taken the wrong reading.

The reading looks correct.

The meter also shows that it is actively consuming electricity.

The tenant not yet returned from home. We asked our tenant permission to check inside the house, and he said ok, go and check like he gave permission.

When checked inside, the Geyser, Fridge, and Wifi router have been running 24*7 for the past 20+ days…

Careless Tenants.

Informed the student and switched off all the devices.

Before returning, I took a photo in that rental unit for another example to check whether the electrical contractor knew his work.

This is a good example that shows how careless electrical contractors who don’t know proper working methods can be easily identified by seeing their other works.

In the electrical contractor guide, I shared that image in section 1.5, example 2.

This issue happened in our first building when we didn’t know how to hire a good electrical contractor.

For the second building, we learned our lesson very well after dealing with this cheap & headache electrical contractor.

We not only learned just choosing a good electrical contractor, we learned a lot from this guy…

Every lesson I learned from this guy in a hard way is shared in my electrical work guide.

Arun

rent not getting paid for 6 months+

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Today my mom brother came to our house. While discussing, I generally speak about business stuff more…

While speaking with them, I asked how their rental property was doing. 

They shared that our saree weaving business is down, so our tenants staying at our rental property are not paying rent.

Most of their tenants are labourers of saree weaving, and when saree is not in demand, owners also stop power looms. So, labourers don’t have work, and they don’t get paid.

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I started sharing my internet connection…

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We have rental units in both buildings. Each building contains 8+8 spacious 1 Bhk units.

All our tenants are college students.

While building both houses, I properly planned and did networking for both buildings.

While doing this, I didn’t plan on offering internet to all the tenants in our building.

But still, I did the network setup. Because in future we cannot do so.

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