Rental Property Types in India: What You Need to Know

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Types of Rental Properties in India

In India, there are different types of rental properties, each with its pros and cons. Picking the right one is key to earning steady or short-term income.

Single-Family Homes

Independent homes in cities like Pune or Lucknow may attract families looking for long-term stays. But long vacancies and full maintenance costs can hurt profits. In this, repairs and upkeep are the owner’s responsibility.

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Multifamily Buildings

A building with 2–3 units spreads out income risk. Even if one remains empty, others can cover expenses. Consequently, more tenants also bring more management demands from repairs to resolving disputes.

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Vacation Rentals

During peak seasons, popular tourist destinations such as Goa, Ooty, and Manali provide excellent profits. However, off-seasons may leave the property vacant. Short-term guests mean ongoing cleaning, marketing, and upkeep costs.

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Apartments

They are compact and popular in cities, such as Mumbai and Bengaluru. They are easy to rent out, but tenants frequently relocate due to employment changes or increased rents. Gated complexes offer shared maintenance, but rental income per unit is limited.

Townhouses

Townhouses, which are popular in Delhi National Capital Region (Delhi NCR) and IT clusters, provide extra space and potential for rent. Still, shared walls reduce privacy, and residential societies often have rules that may limit tenant flexibility.

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Getaway Homes

Getaway homes can be both personal retreats and rental investments. They work well with steady visitors and regular upkeep, but low demand or poor maintenance can reduce profits.

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