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Banking & Insurance Professionals

 
Started by : Adrija , Assistant manager finance , HDFC Bank   10 11 2010 09:32:32 +0000
Industry : BankingFunctional Area : Personal Finance(Personal Interests)
Activity:  17 views;  last activity : 03 15 2011 17:49:58 +0000

The ideal way to make use of your property is to rent it out. Renting out enables you to earn a regular income, and at the same time helps you pay off your home loan comfortably.You can also think of investing in a second home while you get rental returns from your first home.

So, what factors are to be kept in mind?

 
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1 2 3
1 Arrive at a affordable rent
2 Reference & Documentation
3 You can rent your property for short term to vacationers

Arrive at a affordable rent

idea posted by Adrija Assistant manager finance , HDFC Bank

Fix the rent by learning what other rental properties are going for in your neighbourhood.

Remember, potential tenants will be scouting around for deals, so set the rent at a competitive price and make sure you highlight all the most valuable aspects of your home.

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most of the indians in our country are homeless. there is a shortage of nearly 50% of housing in our country.  so charge only affordable rent. do not make our hearts greedy of money.  charge very less and affordable rent, rent to good people, do not compare other rentals, treat tenants like our own family members not as a strangers. that much we can do and it is in our hands.  lets our hands to be helping hands.

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Reference & Documentation

idea posted by Suryanarayan Murthy Asst Vice President (Corporate Finance), A Hydro Power Project

Thanks Adrija. Apartfrom highlighting the plus points, ensure that the tenant comes with a proper reference, even if the rent is little lesser. Also have proper documentation i.e lease deed, tenants ID proof etc. Never give it to an unknown person and without proper reference.

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by evolution , MBA/PGDM student, Gukukul Vidyapeeth  | 10 12 2010 05:19:12 +0000

With appropriate Reference and Documentation,One should also keep in mind of what kind of tenant one needs,

If one wants to rent his property for long term, a tenant with Business Profession can be suitable

For short term renting of property, an employee even if it is Govt. employee one can take chance for that,because once they get indulged in any kind of Court Case that will be the danger for their employability.

Another thing that should be kept in mind is that mode of Payment.It should be in the form of PDC i.e. Post dated Cheques...from security point of view.

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You can rent your property for short term to vacationers

idea posted by Chitro Neogy Managing Director, Acadia Edge Group & GreenExcel Inc

If you have a property that can be used as a vacation home, you can rent it out to holiday parties on a weekly or daily basis for extra income. Generally the rates on those terms are higher than what you can obtain for leased contracts. The pitfall generally is that you have no idea of the tenant earlier and may risk getting your place trashed by an irresponsible renter. On the other hand, renters themselves need assurance that the owner is genuine and there is truth in advertising regarding the property. A novel product released on Facebook recently is MyFriendsHolidayHome, which allows owners to list for free their properties with pictures, whereas buyers or renters browse to find appropriate holiday homes. The key is that you can decide whether to advertise your property to friends, friends of friends or everyone. If your renter is a friend or FOF, you have a chance to know a bit more about their background, at least through a common party. Hence it builds trust in the transaction and of course, the facebook environment makes it easier for other people to know your product. You can try the application (free basic listing) here:

http://apps.facebook.com/MyFriendsHolidayHome

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Mam, when someone publishes a study or research it means there is fair amount of truth into it. You just cannot brush off the matter saying it is fake. If so then you should resonate.
Thanks Manish btw many here are too old for this :) MR. Murthy the link of your blog :)
As such I am not satisfied by the sides given. But the question that should be raised is that why should there be an increase. They already have enough what more do they want?
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