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Which is more attractive: Rental income from residential or commercial property?

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Rental income is an important consideration, for people who want to invest in the real estate sector. Property buyers are often confused over which would provide better income options – an investment in a residential property or a commercial one. Arvind Nandan, the senior real estate professional, points out that the broad principles of asset-selection, such as the location of the property, quality of construction, age of the property, and usage, remain similar between residential and commercial properties. “While most residential properties need to be leased on an annual basis, commercial properties are leased for longer tenures. The vacancy risks in residential properties are higher, given the frequent turnovers of tenants. Hence, property buyers need to pay attention to the qualitative aspects of these two segments,” he explains.

Source – https://housing.com/news/attractive-rental-income-residential-commercial-property/



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