The rising need for Property Management Companies in India
Technological advancements play a crucial role in the success of any business, in today’s fast-paced times. Yes, technology ensures the smooth delivery of services. Now, as part of the services of a property services company, the property specialists use technology to monitor your rental properties seamlessly.
With the steady rise in demand for housing and the development of the rental market, the need for property management companies has only grown.
Some cities in India such as Delhi, Gurgaon, Chennai, Hyderabad, Mumbai, and Bangalore boast rapidly-growing rental markets. The reasons for this boom in rental markets across these cities are tax cuts, governmental rules, and the exponential growth of rental management services.
Also, because the Reserve Bank of India has cut the repo rate to 6% from 6.25%, the sales of properties are bound to go up. Moreover, home buyers are likely to invest in properties because of cheaper loans.
As per reports of Fastfox, the rental business is pegged at $32billion.
With people migrating to these cities in large numbers, the demand for housing will shore up, which will drive the rental business. More so, rental trends such as Co-living spaces and Shared living, which are promoted by property management companies, are gaining traction in India.
However, a professional interior designing company in Delhi opines refurbishing the homes before letting them out. In turn, the homeowners can gain from higher rental values.
NRIs are buying properties:
NRIs are gaining from favorable market conditions in India. A prominent property management company in Delhi will vouch that they are investing in luxury and economy homes. Doing so increases their earnings via capital appreciation and higher rents.
Going by a recent survey, the affordable housing segment offers returns ranging from 8 to 10 percent. Also, the mid-housing segment, luxury segment, and ultra-luxury segment are generating returns of 6 to 8 percent, 3 to 5 percent, and 2-3 percent, respectively.
Lately, both NRIs and Indian residents are propelled to invest in such properties. The rental assurance and transparency in the dealings that property management service companies provide are fuelling this trend.
Under NRI property management services, the professionals also work with builders to convince home buyers of assured rentals. In the process, the unsold inventories translate into sales.
Furthermore, due to the rapid pace of inventory sales, home buyers find difficulty managing multiple properties. So, they rely on property management firms for rent collection and property management.
Maintaining the rental properties is paramount because the depreciation value of properties decides the return on their investment in property purchases.
NRIs are increasingly depending on property managers to maintain and safeguard the property, as well. By doing so, their properties remain habitable for occupying later on.
Nowadays, property management companies are handling the rental market while providing the benefit of seamless transactions to their clients too.
A property management service Gurgaon uses digital marketing platforms for renting out the properties within a short period, as well.
The property managers are conducting background checks on prospective clients. As such, they study their employment and police records to make sure the prospects are looking only to rent a property.
Additionally, they inspect the properties periodically and give regular updates to the owners.
For the maintenance and repair works, they also coordinate with house vendors to perform the given tasks – all without the owner not having to worry about the labour costs.
Besides, property managers are responsible for drawing standard contracts. Such agreements contain rules and regulations that both parties have to comply with. All this contributes to a hassle-free renting experience.
Plus, the property management experts use analytical tools to research the prevailing market rents for all districts.
Further, they inform the owners about the rental market costs of their properties. They base their estimates on land rates, locality, construction charges, and proximity to popular junctions.
Also, because rental homeowners are busy working professionals, they are not able to strike a balance between their careers and the management of their assets. As a result, many flats are not rented out and remain vacant. Nonetheless, by hiring property managers, they can curtail their losses.
However, with cities developing at a fast rate, the rental market and demand for housing will continue to boom. Yes, homebuyers prefer long-term investments – such as residential and commercial properties – over volatile markets.
More so, NRIs would benefit by heeding the advice of property managers to redo the homes beforehand. As such, renowned interior Designers in Delhi can work at affordable rates to renovate your homes. So, you can then charge higher rent and earn extra revenue.
On a concluding note, property management companies are here to stay. As a property owner, you can avail of their services for managing your rental property hassles. Moreover, you can be assured of the quality of tenants, for they conduct in-depth screening of the prospects and sift out the best ones.
Contact our property managers.