Category Residential Rental Property

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.

contact@theluxia.com |    +91 9810505543

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.

Bottom-line

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.

contact@theluxia.com |   +91 9810505543

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 magicbricks.com, 99acres.com 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 opinion – nothing 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.

contact@theluxia.com |   +91 9810505543

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!

contact@theluxia.com |   +91 9810505543