Some properties rent very quick and it is definitely not by luck, rather they have a lot going for them. Based on our experience, we have compiled a few must-haves for a rental/investment property. These apply to your property whether it is in Chennai or anywhere else in India.
Less than 100 meters to main road - Tenants want to be able to hail an auto or shop for groceries within a short walk. Take 100m as a thumb rule. We have seen renters reject good houses, since they were more than 200m away from the main road.
Near major employers - Most people move to be closer to work or schools, so why would they move to a home where they have a long commute. If you can find a home where a major employer or great schools are less than a couple of KM, you are good to go. Do you have an opportunity to buy a home near DLF or on the OMR stretch? grab it.
Small size – Small size homes rent much faster than bigger homes. Majority of the tenants fall under the demographics of bachelors or newly married or family with 1 or 2 kids who are usually on the look out for 2 or 3bhk between 1000 to 1400 SF. Also, in terms of pure ROI calculation, if you can get Rs. 15 per SF for a 1000SF home, you cannot command the same rate for a 2000SF home- SF rate of rent drops as the home gets bigger.
Less monthly maintenance – Most new complexes charge upwards of Rs. 2/Sq. Ft. For a 1500SF house that is Rs. 3k on top of the rent, which is a lot of money for renters. If you can find smaller complexes that charge less than a Rs. 1000, it is much better. Consider this, not everyone wants a swimming pool or a gym in the complex, these are the amenities that push the maintenance fee up.
Of course, there are exceptions to the rule, like villas on ECR or flats near boat club, which target a different kind of audience.
Finally, for some shameless plug, find a good property management company to manage your property, so you get some peace of mind, knowing that your property is looked after.
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