Buying furnished accommodation: the advantages

Buying furnished accommodation: Rental property investment can prove to be a challenge, as it is a long-term project that can involve significant sums. However, if it is well prepared, strong profitability can emerge and have many advantages. Here are the 5 key steps for the success of your rental investment project.

Define the project well

It may seem good, but to ensure the success of your investment, it must be well defined. There are many reasons for wanting to embark on such a project. But each reason determines the nature of the good in which to invest.

If you wish to make a rental investment in order to then be able to house members of your family (your children during their studies for example) then your research should be oriented in student towns and on studio or T1 type properties. If you want to build up real estate, you can diversify the types of property, as well as their locations.

Likewise, it is most important to think about the type of rental you want to set up: furnished, unfurnished, short-term rental, shared accommodation, etc. It is good to know that a furnished rental is more advantageous from a tax standpoint.

By correctly defining your investment project, you make sure to carry it out by choosing the type of asset compatible with your objective.

Also Check: Villas or Flats, What Your Real Estate Choice?

Find the good

Obviously, the success of a rental investment goes through the ease of renting your property. To do this, you really have to pay attention to the choice of it. It is therefore essential to study the market of the city in 

which you want to invest in before you start.

We must therefore look at which are the geographical areas where rental demand is the highest. These are generally large metropolises and so-called student towns.

Once you’ve found the city, it’s important to find out about the neighborhood in which the property you want is located. Indeed, it is the sector that will influence its rental profitability.

Think about funding

Before even knowing how you are going to finance this investment (loan, personal contribution, etc.), it is essential to simulate the financing plan. This step will allow you to have a better view of your room for maneuver and will give you enough idea of ​​the amount you will need.

Once these amounts have been defined, it is time to find financing. There are now many aid systems in place for rental investment. This is the case, for example, with the 0% rate loan (PTZ). Some communities also set up subsidies to promote rental investment. It is therefore important to be well informed in order to know the aids from which you can benefit.

Find the right tenant

Once the property has been financed, and the work carried out if necessary, all you have to do is find your future tenant. In order to ensure that the rents will be paid, you, as the landlord, can ask for certain supporting documents. Do not hesitate to do it, because it will allow you to have guarantees.

Likewise, you can ask for a deposit. If the amount of the rent is less than a third of the tenant’s income, you can opt for a joint surety. If the property is rented in a shared apartment, Warangal real estate professionals recommend asking each roommate for a deposit of the full amount of the rent.

Of course, this all takes a lot of time and energy, if you don’t want to do it yourself, you can hire a management company. Again, it is important to compare them well before making your choice.

Complete your tax form

Once the RS property has been rented after purchase, you still have to declare your rental income. This is an important step that should not be overlooked. Indeed, the fact of making a rental investment gives you the right to tax advantages. It is therefore essential to know them well in order to correctly fill out your tax form.

For example, it is possible to deduct part of the charges and costs related to the rental investment from the resulting income. This, therefore, makes it possible to reduce the taxable amount of your property income  (real BIC regime).

What you must remember

Carrying out a rental investment project can be very profitable. In addition to building up wealth, this will guarantee you a regular income. But to do this, it is important to prepare and define your project well upstream. The success of this depends greatly on the type of property and the location. It is, therefore, necessary to take the time to do research and study the market, before embarking on such a project.