Getting In To The Apartment Business

If you have some land that you would like to build on, you might want to consider getting in to the apartment business because it has a lot more to offer than simply building a house on the land because with a house, you will only be able to rent it out to one family but with an apartment, there will be many families living in the same premises which will bring in more money. Of course, it is understandable that you might not have the money to build an entire apartment complex which is why you should consider doing it in stages. You might be able to build the first floor of the apartment, similar to building one house but do it in such a way that you would be able to building up on top of the bottom floor and go higher.

Get a financial plan in place

With all of these plans, you will need to know how much each option is going to cost you so that you can draw up a financial and a business plan for yourself. This way, you will be able to decide how many floors you are going to build and how you are going to plan out your return on investment and reinvestment of the money. You will need to bring in a professional and recommended quantity surveyor who will be able to survey your land and come up with a proper plan for how much of materials you are going to need for each step and how much each step or floor of the apartment is going to cost you.

He will also need to draw up a tax depreciation schedule to give you a better idea of what you are going to have to spend and pay for. You can either choose to build one floor and rent it out while you build the other apartments or you can rent the first floor out or wait until their contract is over to start building up. You have to make sure that the building work does not bother your tenants as you have a responsibility to give them a peaceful stay and of course, privacy. If you can divide your land in a way that you can build on the other side while your tenants are living in the other part of the land, it might be a better thing to do. You can also choose to have smaller apartments for single people and you can have bigger ones or even luxury ones for hire prices.