The Urgency of Property Management Companies in India
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In this day and age when technology is at the forefront of all successful businesses, satisfying the demands for a hassle-free lifestyle becomes integral to the delivery of services, of such corporates. Residential Rental service providers are structured to cater to the rental sector and takes the worry out of managing multiple rental properties.
Major cities in India like Bangalore, Mumbai, Hyderabad, and Chennai fall under the category of a booming rental market, owing to government regulations, tax deductions and the fast-paced growth of rental management companies across these cities. The repo rate cuts by the Reserve Bank of India from 6.25 per cent to 6per cent, will give a fillip in boosting residential sales and improve home buyer sentiments as they are now able to invest in affordable properties by taking loans at lower costs. The house renting business is staked at $32billion according to reports from Fastfox. As the rental market witness’s further demands in housing due to mass migrations into these cities, India is warming up to rental trends like Shared living and Co-living spaces leveraged by property management companies.
NRI Population Investing in Properties:
The NRIs are taking advantage of the favourable market conditions to lap up luxury homes as well as affordable homes as they offer higher rental income and capital appreciation. According to a survey affordable housing is expected to give returns of 8-10 per cent, followed by 6-8 per cent for mid-segment, 3-5 per cent for luxury and 2-3 per cent for ultra-luxury properties. As of late, NRIs as well as residents, are inclined to invest in these properties as they are encouraged by the transparency in the completion of projects and rental assurance guaranteed by property management companies. Unsold inventories can convert to sales if builders can assure rentals to home buyers, with the help of property management companies.
With the accelerations in the sale of inventory, home buyers are burdened with managing multiple or bulk properties and rely on property management companies for assured timely rents and proper management of the property in their absence. The maintenance of rental properties is crucial to homeowners as the depreciation value of these properties would determine the return on investment on the purchase of the property. NRI homeowners are particularly keen on entrusting their property to property managers for safeguarding and maintaining the property in safe and habitable conditions for self-occupancy at a later date.
Challenges addressed by Property Management Companies:
The rental market in India, erstwhile driven by brokers is now under the hands of property management companies that ensure an online end to end services for the entire 11 months. Property management companies make use of digital marketing portals like to ensure that the properties are rented out in a limited amount of time. They also do a background verification of prospective tenants by screening their employment history and police records to confirm that they are in need of the property for rental purposes only. They ensure that the properties are inspected on a quarterly basis and updates are sent to the owners. When it comes to maintenance and repair works, they dole out services from in house vendors to complete the tasks on time and owners need not worry about the labour charges. Property managers cognizant of rental scams, open the gates to a safe and hassle-free renting experience by drafting standard agreements inclusive of rules and regulations to be followed by each party.
They also conduct analytical research on the market rents for each locality. They educate owners on the rental market prices for their properties, based on the locality, land value, construction costs and close proximity to main hubs.
Since most rental homeowners are caught up in the web of a busy working-class lifestyle, finding a balance in the chaos of corporate life and the management of assets simultaneously, can be strenuous. Many flats remain vacant, closed and not rented out for this reason.
But as the city expands, the rental market keeps growing and the demands in housing will never cease to increase and home buyers invest more on long term investment assets such as residential and commercial properties rather than other volatile markets. So there is a desperate need of the hour for the intervention of property management companies to tackle the problems of housing shortage and rental property management hassles by managing these assets and renting them out in a timely manner.