Introduction
Since won its independence 50 years ago, Bangladesh has made significant progress in terms of national development. Food availability, security, medicine, and education have all seen considerable advances, raising standards of life overall and lowering poverty rates. But not every industry has grown in the same way. Sustainable Development Goals, which was established in 2015, calls for inclusive, secure, and smart apartment rental development.
To make this a reality, all people must have access to cheap accommodation by the year 2030, both abroad and here at home.
Affordable rental apartments were hard to find in Bangladesh before, especially in the capital city of Dhaka.
According to the Overall Population Review, the greater Dhaka regional area is home to about 22 million people as of 2021.
Almost 40% of Bangladesh’s population lives in urban areas, and by 2030, that percentage is expected to increase to 50%. The number of environmentalists from low-lying regions of the country relocating to urban areas will exceed about 20 million as a result of climate warming and rising seas.
Increasing Affordable Apartment Rental Requirement
The consistent demand for rental properties is the main benefit of making an investment in long-term rentals.
According to Official estimates, 43 million rental apartment buildings in the U.s are owned by renters, a number that has been steadily increasing since 1975.
When thinking about entering the real estate investing field, you may rely on this enormous quantity. The same study identifies the inability to long-term afford property as the main driver of the increase in demand for rental properties.
In contrast, the US Coronavirus pandemic’s expansion led to compelled travel restrictions that had a significant negative impact on the apartment rental industry as a whole. Long-term rentals are left vacant for an excessive amount of time when visitors cancel their bookings and do not build new ones.
Reduced Vacancy 60%- The fluctuation of conventional apartment rental homes is far lower than with short-term rentals because they are leased out on a month, or occasionally yearly, basis.
Owners really profit from this because it increases revenue predictability and stability. As long as they ensure the house is habitable, owners who are successful apartment rental in renting out their property can have the same renters for months and even years.
Sustainable Revenue Sources- Long-term apartment rental assets are a great way to generate passive income because they don’t require you to worry about slow rental periods and subsequent changes in apartment rental demand.
On either hand, Airbnb homes see significant fluctuations among high supply and high vacancy rates, which makes revenue highly unpredictable.
Investors with long-term rental apartments can simply arrange to scale their organization due to the consistency of their income.
No need to change the price- Long-term rental property owners just need to establish the vacation rental and apartment rental pricing twice, with both the aid of renting comps or a reputable facilities manager, and then they are free to leave it alone for a few months or even a few years.
The Demand Supply Of Rental Apartment In Worldwide
| Monthly Rent | Apartment Demanded | Apartment Supplied |
| Dollar 3250 | 10000 | 15500 |
| 2750 | 13500 | 13000 |
| 2250 | 16000 | 11000 |
| 1750 | 17500 | 8000 |
| 1250 | 20000 | 6000 |
For Different People “Affordability” Means Different Things
If the monthly apartment rental cost is roughly 30% of the gross monthly rent, some people may consider a property rental to be “affordable”. Affordability for some people may rely on your desire to spend money on your ideal home. Only 17.7 percent of Dhaka’s tenants, according to research assessing the city’s current state, spent less than 30 percent of their households earning.
Therefore, after taking care of their basic needs, only these folks can ‘afford’ to save money to buy a Dhaka flat.
Additionally, the majority of the population in Dhaka is middle-class, and they tend to want smaller apartment rental .
No costs for upkeep and repairs Apartment
Apartment rental are not liable for paying for any home upkeep or repairs. The owner or landlord is responsible for fixing any plumbing issues, roof leaks, or wind-damaged windows.
However, renters or tenants are required to keep a home tidy. And typically trim the grass if a yard is present. The money could be used also for other investments.
Tenants can use their excess capital to make in the government bond market at the time when the property price isn’t rising significantly.
[Reduced Investment Payment Per Monthly – One of the major benefits of renting is the lower monthly housing payments. Young people, seniors, and those living on fixed incomes should pay particular attention to this]
Your annual payment will be significantly cheaper than a monthly mortgage to something like a bank. But if you are leasing a very huge mansion that is worth thousands of dollars.
I paid 25 dollar a month for rooms and 150 dollar. A month for the upper floor of the building in the 1970s.