Hi All : In general, what kind of returns should we expect in rents if we purchase land and construct say 3-4 floors to rent out houses.

Lets say, we spend 80 lakhs on land + houses construction, what's the range we should expect to get back in rents.

I know it might vary slightly to some extent based on location BUT would like to understand the general returns that we expect.

Thanks in advance.
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  • Hi Rent to be expected depends on major factors like

    1. Furnishing Type

    If you provide furnished house it is going to give you better rent than un-furnished house

    Tenants Type

    Who are your tenants Students | Working Prof | Families
    I believe renting your house to Working Professionals gives you a better deal..Majority of them demand for a furnished accommodation

    Location

    Your chances of better return increases immensely if your house is located in a locality where either MNC companies | Colleges | are nearby - In this case even an unfurnished house can get you more rent compared to a furnished place in far away location...

    Accommodation Type

    What kind of accommodation do you want to provide...Girls/Boys Hostel | Paying Guest | Flat on Rent | Individual furnished rooms for rent for Working Professionals etc ....The above all options depends upon what is the majority of public in your locality (eg : are there Colleges/Institutes or /MNC Companies etc...

    Do your research of Localities and what is the current scenario rent that is going for Furnished - Semi-furnished and unfurnished accommodation types in different localities what Tenants are owners expecting and other aspects involved....You can do start your research here Flat For Rent in Bangalore
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