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Build rentals that will give you returns
Some of the things that will help you yield returns from your rentals is by building low cost houses for families and young couples. PHOTO BY ABUBAKER LUBOWA
Every day, people strive to live better, in so doing, they will look for a comfortable place to stay.
As a real estate developer, the most important factor in rental property is in setting early expectations which gives you control over your income on your property.
Take advantage of the real estate management skills to increase your property’s occupancy. Currently, apartments are highly on demand especially for singles and young couples who either have no or a few children. However, stand-alone houses are equally on demand according to Salome Nduhukire Kyalirizo, a physical planner at Canaan Sites.
She says most of these are usually self-contained and two-bedroom-houses ranging between Shs500,000 and three-bedroom-houses of Shs800,000 depending on the location and the services available.
Considerations
Space
The more space, the better. Nduhukire highlights that to the people looking for houses, space in the room means less congestion in the house and perhaps lesser accidents and damage to your house by the tenants.
Good relationship
Like any business, it is cheaper to keep a loyal tenant than to find new ones because looking for a good tenant is as hard as keeping them happy in your property. Maintaining a good relationship with your tenants is vital.
Protect your property and tenant
According to Moses Kinobe, an architect at Kinobe and Partners says your tenants need full time security. You can always hire a security guard,
“This will be an added advantage for your tenants to renew their contracts because they are sure of their safety.
Type of tenants
The most profitable venture is building for families because, “Families usually stay longer but they consider location and would prefer staying in a place that is near the road, schools, hospitals and other amenities.
Since they have a lot of financial responsibilities, it’s expected that they will be looking for an affordable property.
”You can also choose to build for people who live on their own but this type, normally looks for furnished property with an appropriate rental price. They
consider the distance of the place to their workplace.
Attractive
According to Steven Kayiwa, an engineer with Homeplan Architecture, rentals are an investment so it is important that you make them as attractive as possible.
“Do your calculations well and always have quality instead of quantity. Have strong fittings and materials for your houses and renovate whenever a tenant leaves so that the time a new one comes in, the house looks as good as new. Have a fence to ensure that your tenants are secure,” he says.
Location
This is a basic factor for reaping big from rental houses. No one would be interested in staying in a place where they are worried about burglary all the time.
“The house should be zoned in a residential place where people will have peaceful sleep, their children be able to play,” Kinobe says.
Diversify
While many real estate developers target the middle class and executives, you should have the low income earners in mind.
This is because they are many and having rentals that they can afford would be a big market for you. Although they may pay lesser than the middle income, they are more likely to stay longer and are usually loyal.
