Real estate has always been one of the most trusted ways to build wealth in India. Unlike stocks or mutual funds, property gives you a tangible asset and long-term security. But, as veteran investor Someshwar Srivastava points out, owning property isn’t enough to create a steady income. You need a clear plan and smart strategies to make your real estate work for you.
In this blog, we will explore the steps recommended by Someshwar Srivastava to turn real estate into a reliable source of income. These steps are simple, practical, and can help even beginners start earning from their property.
- Choose the Right Property
The first step, according to Someshwar Srivastava, is choosing the right property. Not all real estate generates good income. Location, type of property, and local demand are crucial.
- Location Matters: Properties near schools, business hubs, and transport links attract better tenants and higher rents.
- Property Type: Residential apartments, independent houses, and small commercial spaces can offer steady rental income.
- Future Development: Look for areas with upcoming infrastructure like metro lines, roads, or IT parks. This usually increases property value and rental demand.
Someshwar Srivastava often emphasizes that patience in selecting the right property pays off in the long term.
- Understand Rental Yields
Rental yield is the income you earn from a property as a percentage of its value. Someshwar Srivastava recommends analyzing rental yields before buying any property. A higher yield means better monthly income.
- Average Yield: In India, residential properties usually offer 2–4% yields, while commercial properties can go up to 6–8%.
- Long-Term Potential: Don’t just focus on current rents. Consider the growth potential over 5–10 years.
- Market Research: Check average rental rates in the area to ensure your property remains competitive.
By understanding rental yields, you can make smarter decisions and avoid properties that underperform.
- Diversify Your Real Estate Portfolio
Just like stocks, diversification in real estate reduces risk. Someshwar Srivastava advises investing in different property types and locations.
- Residential vs Commercial: Residential properties offer stable rental income, while commercial properties can bring higher returns.
- City Spread: Don’t put all your money in one city. Tier-2 and Tier-3 cities often offer faster growth than saturated metros.
- Property Size: Mix small apartments with larger homes or commercial spaces to balance income and maintenance costs.
Diversification helps protect your income in case one property or location faces lower demand.
- Keep Your Property Well-Maintained
A well-maintained property attracts better tenants and ensures steady rent. Someshwar Srivastava stresses the importance of upkeep.
- Regular Repairs: Fix leaks, paint walls, and maintain flooring. A small investment now prevents bigger expenses later.
- Amenities: Add features like good lighting, security, and proper ventilation to increase rental appeal.
- Professional Help: Consider hiring a property manager if you own multiple units. They handle tenants and maintenance, saving you time.
A clean and well-managed property reduces vacancies and keeps income steady.
- Use Legal Contracts Wisely
Rent agreements and legal documents protect both landlords and tenants. Someshwar Srivastava says skipping legal details can lead to problems.
- Proper Lease Agreements: Clearly mention rent, maintenance charges, duration, and other terms.
- Security Deposit: Collect a reasonable security deposit to cover damages or missed rent.
- Legal Compliance: Ensure the property has all required approvals and no pending legal disputes.
Strong legal contracts prevent misunderstandings and help maintain consistent cash flow.
- Explore Additional Income Opportunities
Someshwar Srivastava suggests thinking beyond standard rent to increase income.
- Co-Living Spaces: Renting out rooms individually can generate higher monthly income than renting the entire property.
- Short-Term Rentals: Platforms like Airbnb allow you to earn more during peak seasons.
- Commercial Add-Ons: Offer services like parking, storage, or advertising space for extra revenue.
By creatively using the property, you can maximize income without buying more real estate.
- Monitorthe Market Regularly
The real estate market changes constantly. Someshwar Srivastava advises keeping an eye on trends to adjust your strategy.
- Rental Trends: Stay updated on average rents in your area to remain competitive.
- Property Prices: If the market rises, consider selling or refinancing for better returns.
- Economic Changes: Infrastructure projects, new businesses, and local policies can impact demand and prices.
Being aware of the market ensures that your income stays steady and grows over time.
- Be Patient and Think Long-Term
Real estate income doesn’t happen overnight. Someshwar Srivastava emphasizes patience. Holding a property for several years allows for both rental income and property appreciation.
- Avoid Quick Flips: Short-term buying and selling may not give consistent returns.
- Compound Growth: Rental income reinvested wisely can grow your wealth significantly.
- Market Cycles: Property values may dip temporarily, but over time, well-chosen properties tend to rise in value.
Long-term thinking is the key to turning real estate into a reliable income source.
- Plan Finances and Loans Carefully
Many investors take loans to buy property. Someshwar Srivastava warns that poor loan management can eat into profits.
- Choose the Right Loan: Compare interest rates and tenure to reduce costs.
- EMI Planning: Ensure rental income covers loan repayments comfortably.
- Avoid Over-Leveraging: Don’t buy too many properties at once using high loans. Start small and expand gradually.
Managing loans well keeps your real estate income stress-free.
- Learn from Experts
Finally, Someshwar Srivastava recommends learning from experienced investors. Reading blogs, attending workshops, or consulting experts can help beginners avoid mistakes.
- Case Studies: Study successful real estate investors to understand strategies.
- Networking: Connect with local property owners and managers to get practical insights.
- Continuous Learning: The market evolves; staying informed helps you make better decisions.
Expert guidance can shorten your learning curve and ensure steady returns.
Conclusion
Turning real estate into a steady income source is possible if you follow the right steps. Someshwar Srivastava highlights the importance of choosing the right property, understanding rental yields, diversifying investments, and maintaining your property well. Using legal contracts, exploring additional income streams, monitoring the market, being patient, managing loans wisely, and learning from experts all play a key role in building consistent wealth.
Real estate isn’t just about buying property; it’s about making your investment work for you. With careful planning and smart strategies, anyone can enjoy a steady income and long-term financial security. Following the advice of Someshwar Srivastava ensures that your real estate journey is safe, profitable, and stress-free.