33.44 How Can You Maximize your Rental Income?

I recently bought a property worth 65 Lakhs and I now make an average rent of 50K/month on it. This is a rental yield of 9.2%.
But if you take an average property in Delhi that is worth 1Cr. Your monthly rental income would be ~25,000. Yearly: 3 Lakhs. Rental Yield: 3%.

A much better Rental Yield

Let me take you through the key points to maximize your rental income:

1. Buy directly from sellers, not builders

2. Buy at the right price

3. Buy under construction/look for opportunities to renovate

4. Create a 'business' on the property

5. Spend time scouting/learning about the local market

→ Pros

  1. Higher ROI
  2. Low ticket size
  3. Lower maintenance charges:
  4. Short-term rental opportunity

→ Cons

  1. Portuguese succession law:
  2. Builders Overcharging
  3. Local Administrative Issues
    • Garbage collection.
    • Clearances

The idea is:
You need to have a hypothesis of what your property’s use case is,
Before you buy it.

Your rental income can be increased when you:


Thoughts 🤔 by Soumendra Kumar Sahoo is licensed under CC BY 4.0