With mid and high-rise buildings mushrooming in Sri Lanka, numerous investors have chosen to invest in condos. Appreciation investors look for price increases, and rental investors look to find a lessee immediately. These rental investors usually expect about 3-5% rental income per annum.
The underlying question remains, am I actually going to be able to rent this property after I purchase it?
So we have put together some factors to consider when deciding on a rental property. The list is not conclusive, and the general considerations we have gathered are as follows.
- Location – How far am I going to have to commute on a daily basis? Do I want to trade-off my valuable time for being on the road for long hours of the day?
- Sociological – Is the complex safe and secure? Are the neighbours family-oriented? Would my expectations be fulfilled?
- Value – Do we have a swimming pool or a gym? Are the bathrooms, kitchen and balconies spacious? And the deal-breaker “Is it affordable?”
The above list is only general, and has been based on the opinions of RTI clients.
Historically, mid and high-rise condo developments have lower vacancy rates in comparison to traditional housing. Meaning, there is a higher chance of finding a prospective lessee for your property if it is a mid or high-rise condo building. These statistics do vary from country to country, and do keep in mind the condo market is fairly new to Sri Lanka.
None-the-less, the response we have received so far has been overwhelming. We are confident that the demand for condo rentals in Sri Lanka is currently heavily weighted. However, do mind these general considerations. If you are a landlord, you may likely have to meet the expectations of your prospective lessees.
