Rental housing refers to a property occupied by someone other than the owner, for which the tenant pays a periodic mutually agreed rent to the owner. There are short-term rentals, like vacation rentals, and long-term ones, like those under a one to three-year lease. Owning a rental property is also an active form of real estate investment.
Here you can see the features of a profitable rental property.
- Neighborhood with Cheap Customers and Low Vacancy Rate
- Safe Neighborhood
- A Property Worth Your Money
- Appropriate Sanitary Facilities
- Favorable Climate
- High-Value School Existence
- Physical and Social Facilities
- Disaster-free Area
- Appropriate Transportation
- Good Average Rent in the Area
1. Neighborhood with Cheap Customers and Low Vacancy Rate
The vacancy rate refers to the proportion of all available units in a rental property, such as a hotel or apartment building, which are vacant or unoccupied at any one time. Low vacancy rates suggest that more units are occupied. However high vacancy rates indicate that people do not want to dwell in a certain building or neighborhood. Vacancy rates are an essential variable for property owners since they show how their buildings are performing in comparison to the vacancy rate in the surrounding neighborhood. These rates are also economic indicators because they depict the overall market situation.
2. Safe Neighborhood
A safe neighborhood is an important factor for a profitable rental investment When it comes to rental real estate investment, security is very important. No tenant knowingly wants to live in an unsafe neighborhood with a high crime rate. That’s why it’s also impossible for your rental property business to thrive in an unsafe and crime-ridden area. A safe and peaceful neighborhood is a decisive positive factor on its own. One of the key features of a profitable rental property is that it must be located in a very safe neighborhood. For example, tenants want to know that their families and belongings are safe. Areas, where crime rates are low or non-existent, are among the first criteria sought when purchasing rental properties. Therefore, a neighborhood criterion with adequate security is important when purchasing a property. Security is a multidimensional concept. While low or zero crime rates are an indicator of security, another indicator is neighborhood life where basic living needs are guaranteed and all services are provided without interruption. Where there are good is a strong criterion for a profitable rental property.
3. A Property Worth Your Money
The rental property must be financially valuable. Real estate investors see this as their top priority. The answer to whether the money is worth spending in the current state of the property is important. If the answer is yes, it is positive for this criterion. At the same time, the current state of the real estate as well as the post-improvement state is also included in this criterion. The improvement option for the investor also comes into play if they see the profitability as high in the future. For this, it is important whether the value and features of the house are of this value. The rent that a house will bring per month is also the determining factor in this. The rent amount that covers the repair and renovation costs in a short time and provides a higher profit is the main indicator of this criterion. An ideal rental property should generate, for example, a gross annual rent of at least 12% of the purchase price. Although this rate may vary according to conditions, it is a rate that can be taken as an average. The monthly rent you will receive should be at least 1% of the value of the house. This is one of the good features of a profitable rental property that real estate investors also use as an indicator.
4. Appropriate Sanitary Facilities
Appropriate Sanitary Facilities are another important criterion that is questioned by everyone. Especially full-fledged units and their proximity to the neighborhood is a factor that increases the value of the rental property. Health is a factor that comes first. In case of a health problem, the health facilities in the neighborhood and nearby also positively affect the trust criterion, which is another important criterion. It is a factor that affects many criteria positively.
5. Favorable Climate
Climate is an important criterion in the success of a profitable rental property investment business. Homes in locations with the right climate often do not struggle to attract customers. Ideal climatic conditions are very attractive to the customer. Harsh weather conditions reduce preferability. While milder weather conditions have higher profitability for all rental properties. They are also easily preferred. Therefore, a location with the right climate for the property is very important.
6. High-Value School Existence
The availability of highly-rated schools is an important indicator of the potential profitability of a rental property. The existence of educational facilities largely determines whether or not tenants choose to relocate. All parents desire to provide their children with a high-quality education that can move them forward in life. Therefore, this criterion is decisive in the elections. Parents will not choose a property in an area that lacks quality schools and education centers, even if it has other favorable criteria. If there are primary, secondary, and high schools in the neighborhood with good standards, it will increase the value of the property. At the same time, high-level schools also ensure the sustainable profitability of the property, as constant relocation is not preferred by the majority. Again, if there are university-level schools with higher education in the region, this is a strong dynamic that increases the rental property value.
7. Physical and Social Facilities
Physical and Social Facilities are one of the most important common criteria of everyone who looks at housing, without exception. The presence and quality of these facilities in the region is a decisive factor in attracting customers. At the same time, rental profitability is higher in a lively area. The existence and diversity of places such as parks, restaurants, movie theaters, sports halls, culture and art centers, and social activity areas have a high positive effect. In addition, public transport connections and the presence of public and service buildings are important advantages that attract the attention of tenants.
Another important feature of a profitable rental property is that it should not be located in the area of natural disasters. Places known to be prone to natural disasters in the past are not viable options for rental properties. Therefore, places that are not disaster areas are in a very advantageous position for rental properties. Although the value of these places, which are far from disaster risks, is high, their reliability for the future is high. These are places that are far from disasters such as tornadoes, hurricanes, storms, forest fires, storms, and even earthquakes are quite safe places for investments. One of the common features of profitable investments is that they are in a position free of such disaster risks. Investors, who secure the remaining risks with the insurance system, choose the right way for solid profitability by zeroing the risks.
9. Appropriate Transportation
Appropriate transportation plays an important role in rental property investment. The rental property business can only be successful in areas with adequate transportation. Today, time has become much more important. A neighborhood location with transportation that both shortens and makes it safe to spend time commuting from home to places that are important to you makes rental property investment very profitable. Asphalt roads, good network roads, and adequate public transport are important indicators. In addition to these criteria, it will also reduce the negative risks of transportation in the neighborhood with solid transportation infrastructure. For example, the probability of a flood would be zero. Even if natural events occur infrequently in the neighborhood, which has a strong municipal service, transportation will not be affected at all.
10. Good Average Rent In The Area
Rental income is an important income. It is an important resource for the budget. It is necessary to know the average income of the region. For this, preliminary research is essential. This is an important indicator. After determining the current rental prices in the region with preliminary research, it is necessary to gather information about the characteristics of the region. After detailed research, it can be predicted how the region will be in the next 5 to 10 years. The multiplicity of positive factors will play a positive role in rent determination and increase acceleration. The low risk of tax increases is also a very important indicator. These are the factors that affect profitability positively.
How To Rent Out Your Property in Turkey?
Turkey has emerged as an advantageous real estate spot in recent years due to the depreciation of the Turkish lira and favorable incentives for investors, especially in the real estate market. There are some important considerations to buying to invest in or rent your property throughout the year for a fixed income. First of all, you should determine where you want to rent the house. You can use the website and map function and other classified sites such as newspaper pages to find out about availability and price range in specific areas.
What Is The Best Type Of Property in Turkey?
Housing, Land, Commercial Real Estate, and Industrial Real Estate are the best type of properties in Turkey.
Residential properties include various types of houses. This species is quite common compared to other species. It is considered a property type that sells much more. Residential properties are used to earn regular monthly or annual returns. It is a type used for residential or investment purposes. Swimming pools, baths, saunas, gymnasiums, playgrounds, security service buildings, and private gardens are examples of Residential apartments within a residential complex. The other type is residential apartments outside a residential complex. It is usually an independent building and it consists of 4-10 floors at a maximum. Former Apartments, Studio Apartments, Duplexes, Triplex Apartments, Penthouse, Townhouse, and Twin house villas are important and prime examples of residential property.
Land investment is one of the guaranteed investments in Turkey. There are various types of land in Turkey. This has a very positive effect on this investment infrastructure. Agricultural lands, Residential lands, and Public lands can be given as examples.
Commercial Properties are used for investment or commercial purposes in Turkey. They provide a great return on investment. Examples include shops, cafes, offices, shopping places, restaurants, hotels, health units, and training places.
Industrial property is very popular in Turkey due to its low cost. Examples include industrial properties, stores, and research and distribution centers, transfer buildings, central factories, warehouses, production centers. These properties in Turkey bring a fixed, guaranteed income to the owner for investment purposes.
What Are The Benefits Of Renting a Property In Turkey?
The Benefits of Renting a Property in Turkey include the following:
- Residence permit: Obtaining a real estate residence permit.
- Opportunity to apply for Turkish Citizenship: The possibility of applying for Turkish citizenship, if the property is worth 400 thousand dollars, and this is one of the most important advantages of buying a property in Turkey.
- Opportunity to obtain a strong Turkish Passport: The possibility of obtaining a strong Turkish passport internationally, after getting the Turkish nationality.
- Income Source: Facilitating livelihoods in Turkey by buying a property.
- Depth of investment: Opening the way for investors to link their foreign investments between East and West.
- High return: A profitable return based on attractive tourism power in Turkey, where you can lease an apartment during the many seasons throughout the year, at record prices.
- Peace, confidence, and comfort factor: It is a safe, comfortable, and beautiful place where the investor can live in peace.
- Higher education opportunity: Providing an opportunity for the children who are the builders of the future in Turkish universities, with the availability of international schools in different languages and scientific references.
- Suitable environment for all cultures: A conservative environment similar to Eastern and Arab customs.
- Low Cost of Living: The cost of living is relatively low compared to Europe and the region, with high quality and strong infrastructure.