Property Management Startups are Setting New Trends Rise of property management start-ups reflects the changing preferences
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The rental market in India is growing at a rapid pace. While most middle-class Indians aspired to own a home earlier, people increasingly prefer to take a property on rent than buy one these days.
With job mobility becoming quite prevalent, especially among younger people, many of them think that owning a home is more of a burden. Renting gives the privilege to move cities at your convenience and stay in a locality of your choice. You don't have to shell out huge EMIs for the dream property you own. And if you cannot be bothered furnishing the home, you can opt for a furnished property and also get help with housekeeping.
One of the main reasons for the growing preference to rent a home is the high level of migration within the country. People move between cities for jobs quite frequently. When you are new to a city, you'd rather rent a home than buy one.
For migrants, it's not easy finding a property of their choice in a new city where brokers do not speak their language. Add to it the woes associated with lack of documentation and huge security deposits.
The owners, on the other hand, are faced with a different set of struggles to manage their properties. Gone are the days when relatives and friends used to take care of the property in your absence.
The growing preference for renting as opposed to buying and the pain points of the tenants and owners have contributed to the growth of property and rental management start-ups in India. More than 30 million NRIs living in 130 countries across the world has also given a boost to these start-ups.
These start-ups have made lives easier and hassle-free for both tenants and landlords.
One-Stop Solution for Owners and Tenants
It's imperative that the property is taken care of and maintained well to earn a good rental income. From finding the right tenant and performing a complete background check to offering assured rentals and taking care of repairs and maintenance, these start-ups offer complete rental and property management assistance to owners.
They not only help tenants to find the home of their choice but also assist with documentation work and rental payments. Some start-ups even help with moving in and utility connections.
With a rapid growth in the number of people migrating from villages to cities, it can be estimated that around 60-70 crore people will be living in urban areas by 2030, which inevitably increases the demand for residential property in India.
In fact, it is estimated that real estate will be the third largest sector by 2030, contributing more than 15 per cent of the Indian GDP. Also, real estate is one of the largest employers in India providing jobs for more than 75 million people. With as many people moving into cities, there has been an increase in demand for rental properties. The booming rental market and high demand for residential spaces have created a demand for property management services too.
Lack of time has prompted numerous property owners in metropolitan cities to resort to the services of property management consultancies. Not only can they maximise their profits, but they are also spared the hassle of collecting rent, repairs, taking care of tenant complaints and marketing the property to find the right tenant.
These services have also come to the rescue of NRIs who want help in managing their properties back home. They need not fret about the security of their home or its maintenance while they are away from the country.