Own a rental property? This case study can help you understand how our property managers at LuXia can help you save Rs. 40 lakhs!
How it all starts
An NRI customer owns a rental property in Delhi, India and decides to rent it. For this, he get in touch with the local real estate agents, friends and family members and ask for support.
Finally, finds a tenant for his rental property through a local real estate agent (who obviously took a hefty amount from both the sides).
Since the landlord rented the home through an unverified broker, therefore he did not look after the property’s maintenance, after renting it. And, the tenants too did not pay much attention to the cracks, leakage and wear-and-tear on the property as they were not going to stay for long.
As soon as the first tenants vacated the property within just 7 months, the brokers informed the owner about it. Further, the broker made up a scenario of finding new tenants.
But, the broker played with the owner’s trust by renting out the property to his acquaintance and quietly filling his pockets with the unauthorized rent.
The owner gets to know about this and had to make a rushed visit to India. He also had to involve police and the legal system to get the house vacated.
Result – Not only did this cost the owner in terms of money, but also cost him a lot of hassle in handling and settling the issues. Due to the negligence of the broker and the tenant a leakage in one of the water pipe grew big and caused damp walls. This further resulted in high loss of money in terms of monthly rent, brokerage fees, legal fees and the maintenance cost.
Cost incurred so far:
Rushed ticket cost – Rs. 1.5 lakh
Monthly rent loss for 1 year – Rs. 5 lakhs
Maintenance cost – Rs. 2.5 lakhs
Tickets cost to fly back home and return to India – Rs. 3 lakhs
Police and legal activities – Rs. 2 lakhs
The final loss
Due to the hassles of police and legal actions, the NRI owner gets fed up and decides to sell his property in distress. Hence making a sale loss of around Rs. 26 lakhs on his rental property.
Total loss – Rs. 40 lakhs
Hence, not only does he suffers financial loss, but also loses a rental property which he had bought for his retirement plans.
How can LuXia can help you save Rs. 40 lakhs
LuXia LLP offers property management services for NRI landlords, thereby helping them save time and money on their rental property.
Our property managers make sure we hire tenants only after proper screening to check on their backgrounds, tenure of their stay etc. We also prepare all the legal paperwork before leasing or renting the rental property to the tenant to ward-off any chances of treachery.
Apart from renting, we also take care of property maintenance by making timely visits to the property and fixing any issues that require attention. This way the NRI landlords need not make emergency visits to maintain their property and save lakhs of their hard earned money.
Another advantage of hiring our property management company is that we put in efforts to minimize the vacancy period so that the NRI landlords can enjoy the monthly rent coming their way.
We have a real-time client portal for our landlord clients. In this portal we share updates for rent collection, scheduled visits and other important updates. Hence, the landlord stays informed and updated about all the happenings on his rental property. Thus – no deceit.
Get in touch
Save your money and get high Return on Investment (ROI) by hiring our property mangers for your rental property in India.