Category Residential Rental Property

5 benefits of purchasing an investment property

The benefits of investing in real estate over the long term are manifold. By investing in income property, you can put your idle cash to work.

What’s an investment property anyway?

“Buying a property to earn revenue is referred to as Income Property.”

Both residential and commercial properties come under income property. Investors earn money by holding and renting the property until the value appreciates, following which they sell for a profit.

More so, if you’re looking to get higher rents for your income property, consider hiring the services of interior designers for remodeling your property to increase their rental values.

Several companies are offering the entire plethora of services. These include rental property management, interior decoration, and residential property management services. And you can approach a property management company in Delhi NCR for interior designing for homes in Delhi NCR too.

However, before investing in income property, the general recommendation is to calculate the risks, expected earnings, tax benefits, among other important aspects.

Here are 5 benefits of investing in income property.

1) You’re in control all the way

As an investor in income property, you take all the decisions – regarding rent and maintaining the property when renting out to tenants.

Also, you can avail services of such as VRBO and Airbnb for listing your property to offer accommodation to travelers. Or, hire the services of a property management company to help you connect with interested parties. And if you’re residing out of India, you can avail their NRI property management services as well.

2) Greater property value

A noteworthy benefit of investing in real estate is that you can pay some amount from your savings while borrowing the rest from lenders; they lend up 20 times more. Yes, you can leverage a property. Though, if you use more debt than equity, your investment will be ‘highly leveraged’.

Over time, your property will appreciate and you can earn appreciation profit even after clearing your interest and other dues.

3) Higher Earnings

By having tenants in your investment property, you can earn rental income. And whatever money remains after clearing all related property expenses (mortgage payment, maintenance costs, and vacancy charges) constitutes your profit.

4) Lower your mortgage

You can avail the 30-year fixed-rate mortgage loan. Such loans have interest rates that remain constant for the full 30 years of the loan. You may pay more money to interest than the principal during the initial years of the loan. Though, by the 15th year, the amount comes close to a 50/50 split. Hence, you can create more wealth for yourself by holding on to the property for longer while the more your tenants are paying the loan principal.

With each passing year that you own the property, you can utilize your tenant’s money to clear your debt. By reducing your loan amount, you’re building wealth; you can access the money if you refinance your loan or sell the property.

5) Tax Benefits

Rental property owners can avail tax deductions. You can write off travel costs, interest on your mortgage, property taxes, legal fees, maintenance repairs, insurance, and interest on credit cards that you’ve used for your property purchases.


In addition to the above write-offs, you can depreciate the purchase costs of your property as per a fixed depreciation schedule – all this while your property appreciates in value.

As compared to investing in stock markets where you’re required to pay income taxes, investing in rental property is more advantageous. Because you can offset the rental income against the depreciation expense of your property. That said, you can lower the amount of taxes you’ve to pay on rental income.


Get more answers by getting in touch with our end-to-end property management company in Delhi NCR. |   +91 9810505543


Interior Designing and Assured Rental – Case Study of our Canadian Client

Own a property in India which is sitting idle in the real-estate market? Our property managers can help you earn money out of it. Just like we helped our NRI client from Canada by rendering our interior designing and assured rental service.

Know more about it below.

About the Client

The NRI client lives in Canada and has a property in Noida – India. He purchased the property in 2010 for himself, but had to move to Canada in 2012 for work. Since then the property is lying vacant with local guardians keeping a casual eye every now and then.

Property: the client owns a 3BHK flat of 4500 Sq ft in one of the well ranked locations of Noida, which comes under the NCT area of Delhi, India.

Client’s Problems

The client’s property was looked after a local acquisition who could not dedicate his time to the client’s property sufficiently. For this reason the property’s value and quality was degrading with time. Also, the property asked for a facelift as per the modern times to make it look aesthetic and more functional.

The property bought by the client a decade ago was not giving any monetary benefit to him ever since. He even tried to rent out his flat through the local guardian but ended up making loss. As the tenants were kept without verifying, and they harmed the property big time. Also, the rent of the property was also quoted too low as per the market norms.

Being an NRI it was not feasible for the client to travel to India to manage his property frequently. Therefore, this time he was looking for professionals to take care of his property and give him some monetary benefits through the property.

Client’s Requirements

The client was looking for a NRI property management company preferably in Delhi NCR – India. He was looking for a professional to cater to his property related requirements.

He wanted a property management company to redo his property’s interiors and then put it out in the market for residential renting. The client also wanted to ensure that the tenants are rented after proper verification and for long term.

Along with this he also wanted to virtually monitor all the activities on the property and see the rent receipts and other important documents online.

How LuXia’s Noida team helped the client

Interior Designing and Assured Renting of the property without the need of the NRI owner to travel to India

The very first requirement of our client was met as he did not have to travel to India in this entire span of 2 years to manage his property. Everything was taken care of by our property managers in Noida.

Our property managers also shared an online portal with the client so that he can see the important information like rent receipt, bills, work progress etc. on the portal.

Here’s how we helped him with our services.

Interior Designing

As asked by our client LuXia’s in-house team of interior designers went to the property to study the designing requirements. We also conducted a video conference with the client to walk through the property with the owner. And to get an idea of his interior designing interests so that we can incorporate them in the property.

After sharing the idea with the owner our interior designing team started working on the property to mold it into an aesthetic and easy on functionality property. The interior designing work was finished well within the timeline. And was shown to the client again via video conferencing.

Assured renting with steady increase in rent for 2 years

After the interior designing of the property, LuXia started with the marketing of the property through various channels to find an appropriate tenant for the client’s property. After strict and careful screening of the applications, LuXia chose a suitable tenant for the residential property.

Our property manager for the NRI client ensured proper police verification before renting the house to the tenant. We also got the rent agreement and other necessary documentation in place to go as per the India federal guidelines. We also made sure that the client received appropriate rent as per the market norms. And also the rental income increased steadily over the two years.

LuXia’s value-added services that made our NRI client smile!

  • Guaranteed Assurance – all our rental management services come with an assurance of maximum Return of Investment and peace of mind.
  • Dedicated Property Manager – the client got personal attention by a single point of contact for all their property related concerns.
  • Law & Regulations Compliant Rental Property – we made sure that landlords property is compliant with the property laws and landlord tenant laws in India.

Get in touch

You too can save a lot of your time and money and get high Return on Investment (ROI) on your property. All you need to do is get in touch with our NRI property management company in Delhi NCR and we’ll handle all your property requirements. | +91 9810505543

NRI Rental Property Management Services Generate Steady Rental Income and Higher Property Values

Managing your property from far away is an arduous task. Few NRIs think of selling their property if it is located in a posh locality. However, NRIs that own property in India have multiple anxieties.

There are two main roots of these anxieties.

There is the issue of safety and upkeep of the property. Parallel to it is the concern regarding the loss of value invested into the property.

No one wants their property to be used for wrong purposes or by irresponsible tenants in their absence. Still more, a property that is not maintained depreciates in value. Eventually, it loses out in the rental and resale market. It might even become unliveable!

Thanks to the professional property management companies, NRIs can now relieve themselves of their property maintenance burdens. Often, a property management company combines various interrelated services. For example, rent management and maintenance over a period of time go hand-in-hand. Similarly, pre-possession formalities and preparation of registry papers are usually done in quick succession.

The overall focus of NRI rental property management services is the following:

  1. Allow the NRI homeowners to convert their property into an income-generating asset rather than a liability.
  2. Manage the various billing, paperwork, legal, and agreements related formalities in the absence of the property owners.
  3. Ensure good upkeep of the property so that its value gets enhanced gradually.
  4. Help the homeowners who stay away from their property to keep control of their property remotely. Involve them in all important decisions. Supply them regular reports. Allow them to participate in real-time in the renovation, repair and, interior designing.

No NRI would want their property to lie in waste when it can generate a steady income. The underlying logic of rental property management for NRIs is as follows.

Professional property managers ensure you maximum rent from your property. A fraction of that rent goes into maintaining the property. A part of the savings from the rent goes into repairs, renovation, upgrades and, interior designing. A small fraction goes as the charges of property managers. The remaining amount is your income from your property.

While you earn your income, your property is being maintained for you. Besides, the value of your property keeps on increasing all this while. Basically, it is a triply beneficial deal for a very small fraction of charges. Besides, you save your precious time and energy.

How can Residential Property Management companies ensure you steady rental income?

Professional Residential property management companies maintain a dynamic database of prospective tenants. They market your property in the rental market to reduce the vacancy period to a minimum. They also ensure that your property derives the maximum possible rent by highlighting its advantages.

On the flip side, the company would also ensure that competitive rents are set. Your property would thus not lose out in the rental market. Timely collection and transfer of rent from the tenants is also the company’s responsibility.

What all services can you expect from Property Management Services for NRI?

Generating rental income from your property is the foremost task. Much else needs to be done for overall property management.

#1. Finding the Right Tenant

Doing a proper background check is an essential property maintenance service. You would not want your tenants to have questionable backgrounds. Besides, property managers will carry surprise inspections to ensure that your home is used for productive and positive purposes,

#2. Maintaining the Property

This is the next big responsibility of Property management services for nri after rent management. It has three aspects:

  • Bills and Maintenance Charges: Property managers would make sure all the bills are paid in time. Besides, there could be housing society monthly/annual maintenance charges as well. With a property management service you would no more need to keep a checklist of dues.
  • Regular Repairs: Repairs have to be made after the tenants leave. Before a prospective tenant is coming to have a look, everything should be in right place. There are plenty of fittings to be checked for their functioning every month. Property maintenance services maintain links with plumbers, electricians, masons and carpenters etc. to carry out regular repairs.
  • Renovation and Interior Design: Sometimes, your property would require refurbishing both from inside and outside. Its interior design could have become outdated and the paints too dull.

Your property should remain attractive to tenants. Besides, it should keep up with the changing trends so that it can compete for value. Property management companies will contact you to confirm all the details of renovation. With periodic visual reporting system, you can decide when to go for refurbishing. You can even participate with designers in real-time from remote location as your home gets a new look.

#3. Documents and Pre-possession Formalities

Rent agreements have to be signed with tenants. In case you have just bought the property, it has to be registered with the authorities.

There are about a dozen documents that a new owner needs to obtain.

These include allotment letter, land-use certificate, mother deed, occupancy certificate, transfer certificate, NOCs, receipts of the property tax etc.

However, with the experience of property managers, you are ensured to not miss out on any crucial document. Your property would not run the risk of overstepping any local, state or national regulations. It would always comply with latest property laws.

There are a number of other pre-possession formalities that your property management company can do for you. These include:

  • Checking the quality of electricity and water connections.
  • Seeing that bathroom and kitchen fittings are working.
  • Inspecting the woodwork and tile-work.
  • Ensuring the parking space.

Overall, it is meant to ensure that the seller/builder has kept the word.

With Rental Property Management Services, NRI owners can now Relax!

Creating a rental income channel from your property as an NRI homeowner has become a lot easier. You would also be ensured that your property increases in value gradually. Favourable markets play their role, but good rents and higher value can only be ensured by good property management. Thus, you need to relax by entrusting your property in the hands of a competent property management company.

Get started with our NRI rental property management services. |    +91 9810505543

Renting a house through a property management company increases ROI for NRI homeowners

The property owners are perplexed between managing their rental property on their own or hiring a property manager for the management.

However, some home-owners can manage the rental property for a single family on their own. But, NRI property owners are best advised to use professional property management services for better ROI.

While property management through professionals can be beneficial to all, but here are some notable benefits for NRI property owners.

Time Saving for NRI homeowners

Non-Resident Indian (NRI) property owners may face extreme difficulty when they try to manage the property on their own. Additionally, they may even incur heavy loss in terms of cost if even a small thing goes wrong.

It becomes almost impossible and expensive for the NRI homeowners to travel every now and then to manage their property in India. Hence, the best and worthwhile solution is to hire a property management company in India and leave all the registration (pre and post), interior designing, tenant acquisition and property management bothers to them.

As they say, “Time is money!”, so, as NRI landlords can save a lot of their valuable time, they can use it to add value to their more important and regular tasks.

Improved ROI for NRIs

The main reason for NRIs to rent their property in India is to keep the cash flow going and make some extra money for investment, or retirement savings or to cover mortgage cost.

Hence, the NRI property owners look forward to an increased return of interest for their property in India. And the most promising way is to reach out to a property management company in India and let the professionals make way for better results for you.

Since one of the tasks of property managers is to maintain your property in the best health, hence you shake hands with a lot of benefits including:

  • The improved ROI path starts right from the travel cost. Since the property managers manage their property in India, hence the NRI owners incur no/minimum travel cost. So, low expense, more ROI.
  • The property managers make regular timely visits to the rental property to check the overall health of the rental and to inspect the overall functionality of the tenants. Therefore, even if the tenant fails to notify of any damage in the property the property manager assigned to your property can easily locate it early and fix it without further damage at a competitive price.
  • Since a property management company has either in house maintenance staff or has contacts with local vendors with whom they regular work. So, the cost at which a professional management company fixes the damages is quite low in comparison to price quoted by direct vendor.
  • After you have finalized a property management company in Delhi, the vacancy period for your rental property gets very low. This means regular rental income without any monthly loss. This is because the property management companies acquire tenants only after careful screening process.
  • A property management company like LuXia LLP, has a real-time online portal for landlords. This way the NRI landlords can log in to their account and track all the maintenance logs, rent receipts and other important documents from anyplace with an active internet connection.

All the above benefits collectively add up to increase the ROI of the rental property for NRI homeowners who have their rental property in India.

Better implementation of landlord-tenant jurisdiction

One lawsuit against NRI landlords can wipe off the profits they made in years. Hence the understanding of the landlord-tenant laws as per the governing jurisdiction is crucial.

If out of convenience or trust issues an NRI landlord decides to let their friend or relative manage their property in India, then it can hurt them badly in numerous ways.

For instance, vacancy for a long time, misleading information about rent, maintenance mishaps and most importantly loss of money when a tenant files a false lawsuit against the landlord and due to initial negligence or ignorance the NRI landlord has to bear heavy loss.

Since, property management companies in Delhi NCR have a better understanding of tenant-landlord laws as they have been managing the rental properties for several years, therefore the property managers can help you save from false lawsuits by tenants. Thereby saving your precious time and money.


Renting a house through a property management company is an excellent choice for NRI property owners who are looking to put their property on rent. It not only saves you time and money but also increases your ROI.

Get in touch with our property management company in Delhi to manage your rental property. |   +91 9810505543

How to set the perfect rent for your residential rental property?

As landlords or property owners the most challenging part while renting out their property is to decide the right rent amount.

When the NRI landlords or other property owners decide to rent out property, they aim to:

  • Cover property mortgage, or
  • Cover taxes. Or
  • Cover maintenance costs, or
  • Save money for their retirement, or
  • To maintain positive cash flow.

Basically, the aim is to make some profit by renting your property to tenants.

But again, the problem hinges on the question: what is the perfect rent for a residential rental property for landlords.

If the landlords set the rental price too low then they lose out on profit. And if they set the price too high then there are very good chances that the rental property remains vacant for a very long time.

In fact, if the rental price is high then even if the property gets occupied but as soon as the tenants find a similar place at cheaper price, they may vacate it. Resulting in revenue loss.

Landlords are mostly drawn towards increasing the rent price in order to capitalize on the cash flow, but that approach can backfire. A high rent amount could push away prospective tenants. Especially if it doesn’t match with the neighbourhood leading to the disappointing vacancies.

If you lose on tenants for even a month, your profits will drop.

Vacancy is the top reason landlords lose money on rentals, so make sure you set the rent of your property competitively.

Factors that influence rental pricing

Major Factors

  1. Joint-family or single family or single person
  2. Number of rooms
  3. Area of the property
  4. Amenities
  5. Location and proximity to schools, malls etc
  6. Duration of lease
  7. Pet friendly
  8. Safety

Minor Factors

  1. Laundry facility
  2. Power backup
  3. Furnished/Unfurnished
  4. Lease clauses
  5. Cleanliness
  6. Parking space
  7. Garden
  8. Neighbourhood

Here are a few tips to nail the rental price equation and gain maximum profits.

Rental rate

The essential thumb rule of setting the rental rate is:

Rental Price = 2.5-3.5% of the market value of property

For example, if a property is valued at Rs. 40 lakhs, then it’s rental price will range between Rs 10,000 to Rs 14,000 per month.

Having said that, the estimation may vary depending on the demand and supply equation. If a property is in high demand then the rental price can go up to 3.5%. But if the demand of the property is low then the rental rate stays at 2.5% of the total property value.

Study the competition

When you are trying to set the right rental price for your property then the first thing should be to study the comparable. This includes considering the market rate for similar properties in the same area as yours. The price may vary depending on:

  • Number of Rooms – higher the number higher the rent
  • Number of members as prospect tenants – rental price for single families will usually be higher than for joint families
  • Age of the property – rental price can go up if the construction of your property is new.

How to study the competition market

There are various ways to study how the property rentals vary in your competition market, some of them are:

  • Newspaper and Online Ads – Websites like, etc can give you insights about the property for rent in your area. Likewise, local newspapers also run ads for property on rent. All you have to do is keep an eye on the flats that get rented fast, those that decrease their prices and those that have been listed for long.
  • Ask the landlord – You can even ask the landlords directly for the rental details and compare them with yours.
  • Get a property management company’s opinionnothing beats the opinion of professional property managers. They will guide and even manage the complete rental pricing, tenant acquisition and rent management process.

Adjust the rental price as per the amenities

The landlords should not set a standard price for the properties. The price should vary depending on the amenities and how desirable the property is.

Set the rent depending on:

Property essentials

An apartment with an attractive view, updated appliances, well maintained floor and ceiling, bigger space, extra storage facility, balcony and windows gains more attention from prospect tenant.

Apart from these points if your property is in a multi-storey building then higher the floor, higher the rent.

The only exception to this is if the building has 4-5 floors without lift, then as you go high the landlord will have to decrease the rent.

 Market value of the property

Market value determines the current value of a property with respect to the core factors. There are many elements that may affect your property’s market value; like an infrastructural development.

For example, the development of a metro link, a flyover, or a school can positively increase the market value of your property. But, the development of a dumping ground near your property can decrease its market worth.

Thus, it is crucial to identify the current market value of your property to correctly set the rent. If you face some difficulties in quoting the correct property worth, then take help from property maintenance services provider in your area to know the exact cost of your property.

Existing rental rate

Real estate advisors believe that it is important for the landlords to consider the rental price charged by other landlords in your area. And make sure that the rent you charge for your property is in sync with the existing rental price for similar property in your area.

Too much difference between the existing rental price in your area and the rental you ‘demand” can dissuade the prospect tenants and move them to other low-priced options.

Understand the regular cost of mortgage, taxes, repair and maintenance which you have to pay while the property is vacant and appropriately decide upon the rental rate.

Change the rent as per the evaluations

A very crucial understanding for the landlords is that they can/should change the rent amount as per the assessments attached to the property.

Ideally the homeowners must re-evaluate the rental price after every year or at every lease expiration to gain maximum ROI. As landlords your objective should be to increase the rental price as much as possible over time without losing the tenant as vacancy can cost you time and money.

“Lower the rental prices if you get few calls/visits on advertised property. On the contrary, increase the rental prices if you receive many calls/visits on your property.”

If you have any difficulty in setting the rental price for your property then get in touch with our property managers and they’ll take care of the entire process; saving you a lot of time and cost. |   +91 9810505543

What factors to consider to buy residential rental property for investment?

Are you looking to invest in a residential rental property? As much as the profit prospects of the investment are quite high. But a little diligence and research is appreciated from the owners before making the purchase.

Real estate market is a tough to crack; hence the buyers and sellers are advised to come prepared for the dealing or your one mistake can wipe-out your returns.

Here are the 10 most significant features to consider while buying a residential rental property.

Top 10 features to consider when searching for a profitable residential rental property

1. Study the neighborhood

Do not neglect the neighborhood in which you plan to buy your rental property. This is because you get to know a great deal about the types of tenants acquiring your property and your property’s vacancy rate.

For instance, if you buy a property near a school or a university, then there are very bright chances that college students will take over as potential tenants and you may have to deal with vacancies every year.

2. Calculate property taxes

Property taxes tend to differ widely across your target area. So, you must be cognizant of how much property tax you will be paying to them. Although high property taxes are not a bad thing in a goof neighborhood which attracts long-term tenants. But some second-rate places too charge high taxes, which is not a profitable decision to make.

You can discuss the taxes with your property management company or he municipality’s assessment officer or you can even talk to other homeowners in the society.

3. Schools in nearby location

The value of properties which have reputed schools in their nighborhood is quite high. Hence you must consider whether or not the society has a good school in the localities.

Having a good school in nearby location ups the value of any residential property, both in term of monthly rent and also when you plan to sell it in future for excellent returns.

4. Safety arrangements of the area

In today’s world or even otherwise safety is the priority for almost all. Just check the arrangements made by the society to fix the crimes. The very basic is to have a CCTV camera installed and a guard to monitor the premises.

Apart from this also check with the local police for the crime statistics in the locality. Also check the rates for vandalism, serious crimes, and minor crimes, and note if criminal activity is decreasing or increasing over time.

5. Job Place

Locations which have increasing employment opportunities are tend to attract more tenants. It is an excellent idea to invest in a property which is in a location not far from companies’ hub location.

Having said that, it is also important to keep in mind that while a good business increases a property’s value, a not-so-good business in locality may have the negative impact and bring down the property prices.

6. General amenities

Take a tour of the neighborhood and check out the local markets, kid’s parks, eateries, gyms, public transportation and all the other benefits that attract renters.

7. Future developments and projects

The local municipal department has all the information about new ongoing and projected developments in the area.

If you see major constructions in the vicinity of your prospect rental property, then it is most likely a good growth area. Pay attention to any new developments that could cause a drop in the price of surrounding properties.

8. Quantity of listings and vacancies

If an area has an oddly high number of listings, then it signals two things – either it is a routine seasonal cycle or a locality is decaying.

As a real estate buyer your job is to find out which of the two signals is rights. In either scenario, high vacancy compels the landlords to lower rents so as to attract tenants. Whereas, lower vacancy lets landlords to increase rental prices.

9. Setting the right rent

Rental income is what you look for the most which buying a residential rental property. Hence, you need to enquire about the average rent rate in your prospect area.

Just ensure that any property you consider to buy returns you enough to take care of your mortgage payment, taxes, and other regular expenses. Research the locality thoroughly and calculate its position in the coming years.

10. Natural Disasters

The returns you get from your rental property are not inclusive of the insurance you buy for your home. Hence be very careful in choosing the area to buy your rental property.

Do not invest in an area prone to flooding or any other natural disaster to save your rental income by heaps.

The Bottom Line

You may find a lot of properties for investment in the city of your choice. But before finalizing your rental property you have to do your due diligence and a lot of footwork to get the max returns on your rental property.

This may seem quite overwhelming, but you can always use the help of professional property managers in your area.

If you are looking to buy a property in Delhi NCR then our property management services in Delhi NCR will be very helpful in the entire process.

Get in touch now! |   +91 9810505543