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Just as a bird finds its nest the safest place to nurture its eggs, we all find it safe to invest in our homeland. If you have an investment in India or thinking about investing in India, read along to know how the industry has made it so easy for you. Land is and always will be the most lucrative investment. But gone are the days when it can be left unattended. This concern had lead to the development of land - which was to raise buildings - either residential or commercial. It’s a known fact that land appreciates over a period of time...but is it the same for buildings as well? No, in reality, the value of a building depreciates and this is a point of emergence of new verticle in the real estate industry. Renting or leasing initially emerged to recover the cost of the building. Transformations in the real estate and banking industry have made renting/ leasing an essential source of income to meet bank EMIs. Now through the entire journey, the real estate industry has gone through, you must have realised that the best practice in the industry is to have your property earn rent for you. Appreciation on your land value is un-realised until its sold, But rent received is the realisable return on your investment. As a property owner, you must be aware of the hassles involved in property management. Plumbing issues, sewage issue, overgrown weeds are just a few of the top of my head. In theory property management sounds simple but the amount of man power and specialised skill required makes it complicated. Just imagine trying to find a resource who is good at plumbing, carpentry, painting, gardening and well versed in statutory payments …. Difficult to find one right? That’s where the role of Property Management Company comes into play. The sole purpose of a property management company is to take care of these tedious tasks and ensure a specialised person is put in place to fix them, allowing you to reap the benefits of your property without being burdened with all the stress. If you find yourself in any of the below situations, you should consider hiring a property management company 1. You live away from your property Being an NRI, its quite obvious that you are distant from your investment in India. You might often rely upon your close friends or relatives to keep an eye on your property, but can they take on the complete burden of maintaining your property? A trustworthy property management company can be your eyes and ears on the property and can execute anything you wish to do with your property. 2. You have a tight schedule and find it difficult to make time to visit your property If real estate isn’t your full-time job and you have made an investment in a property, its most likely that you don’t have the time to regularly look into its affairs. Time is money, you will surely love an investment that can grow on its own without interference. Choose the right property management company and be rest assured that you will receive the best return on your investment and your property is in safe hands. 3. You have multiple properties  If you own multiple properties in the same city or across cities, it could be tedious to ensure all utilities are paid and make note of all property updates Pass on the tension to a property management company to perform these routine tasks and remain tension free. A good property management company will also prepare a report to help you analyse the income and expenditure on your property. 4. You are not familiar with managing a property
5. Finding it difficult to find tenants You may look for certain qualities in your tenants, you might expect them to be a family or bachelor, you might expect them to be able to pay your rent on time and sometimes you might not prefer having pets on your property. With all these conditions, it becomes difficult to find a tenant. Just thinking of the number of property visits and handling ‘n’ number of phones call...its just easier to pawn off this duty to a property management company  6. Managing tenants has become a burden You may feel a sigh of relief once your property is tenanted, but does your responsibility end there? A tenant looks forward to you to fix all minor and major maintenance issues that may arise from your property and you would have to keep a track and follow up on monthly rent payments. A property management company acts as a mediator and ensure your tenant is happy by addressing all their need and makes sure you receive your rental payment are made on time without any reminders. 7. Marketing your property is a hassle Back in the days, word of mouth was the only marketing strategy that existed, later brokers can into the scene, but now with the technological development, we have virtual market places. You can list on so many e-classified and websites at a minimal cost as well. But with a larger reach in marketing, you receive larger calls and many times depending on where you have marketed, you might receive unverified and bogus prospect tenants. An ideal property management company will market your property is reliable marketplace and find your verified and reliable tenants. 8. Not aware of the latest laws With time, the laws of a country change as well. Though we might come across these updates in the news, the real impact of some laws on our investment is often ignored. A property management company always looks out for these laws or regulations updates and ensures that our investment is law-abiding and keeps you in a legally sound situation. PropertyAngel is the best property management company and property rental platform in Bangalore. As a new age property-tech company with 860+ verified properties under our wing, we are a metrics-focused organization with Strong SLAs to measure our performance. We are deeply driven by Customer Happiness & Customer Transparency To know more call us at 91-80-47095974 / 91-7406484455
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Real Estate Investing in the post-COVID era: A chat with Mr.Zahed Mohmood, of Silverline Realty10/2/2021 Whether you have already made an investment in real estate or planning to make one in the near future, you must be fully aware of the real estate market trends in order to make the right choices. PropertyAngel has launched a new series of real estate insights named “Bricks & Barons” to reach out to leading Industry veterans to gain from their rich experience and see what perspectives they can share. This in-house production is presented by our Co-founder, Rahul Pai. As the 1st in the series, we had a chat with Mr Zahed Mohmood, Co-Founder and Managing Director of Silverline Realty, a leading real estate firm in Bangalore with diversifications in consulting, construction, advisory and investing, founded way back in 1947. Mr Zahed is a second generation real estate professional who specializes in property investment advisory. At Silverline Realty, Zahed leads the business development, transactions and advisory teams. He is also the regional director of CIRIL – A pan India commercial real estate brokerage company and a founder member on the Board of Governors of Bangalore Realtors Association – India. Watch the video to know his thoughts on how the real estate market stands and likely to evolve, especially after being affected by the Pandemic. I’m sure you have many questions in mind… Is Work from Home here to stay? Is the Government going to increase property taxes? Is Bangalore growing? Be rest assured, all your queries will be answered. The future is looking bright, the real estate industry is bouncing back and all the factors seem to be favorable to invest. Get secret tips from the top pros on where to invest and what to expect in Real estate for 2021! Insightful right? Stay tuned to the “Bricks and Barons” Series on YouTube for the latest Real Estate Updates from the who’s who of the industry. It’s quite common to feel jitters before moving to a new city. But once you have stepped foot on Namma Bengaluru, everyone feels a sense of familiarity and that’s because Bangalore is an extremely welcoming place. Are you a fun-loving party person? Or are you a nature lover who wants to take a calm stroll surrounded in greenery? Bangalore is the perfect place to be. What if it told you Bangalore can be your therapist? It has this magical capability to suit every personality. Here is what makes Bangalore special: Bangalore weather This might not be the first time you hear a Bangalorean boosting about Bangalore weather. But trust me, once you are here, you will also become an ambassador for its weather. Especially during this dramatic 2020 we had, Bangalore weather is the one thing that has kept all of us sane. It leaves such a therapeutic impact on us, its pure Bliss! Bangalore Social Life There is no shortcoming for the number of pubs in Bangalore. It has the most number of pubs in Asia.  It’s common to have a buzzing lifestyle in cosmopolitan cities, but Bangalore is Top on the leaderboard. Large shopping malls with almost every international brand, drive through theatres, recreational activities and not miss the comedy clubs in Bangalore. It’s the best way to take a break from your stressed lives. Bangalore Gardens and Lakes Not a social bee? Don’t worry you can enjoy the chirping birds and cool breeze under large trees in the heart of the city as well.  Bangalore is also known as Garden City. And to prove this its surrounded by Parks and lakes, best for your morning and evening walks.
Some lakes also have boating where you can unwind your week. People of Bangalore Cultural Diversity is at its peak in Bangalore. As the IT hub of the country and its culture for start-ups has attracted people from all over India. This is exactly why you feel at home in Bangalore. All festivals are celebrated here, all customs are respected here, and you want to break the stereotype - it gives you that flexibility as well. People here are very accepting, you should have no problem to gel into this environment. Traffic With all good things, come 1 negative issue and that’s Bangalore Traffic. I guess, after the Bangalore weather, this is the most talked-about topic. Bangalore Traffic is the reason you should be wise and choose the right place to live. Why it’s important to choose a location Bangalore Traffic can consume a lot of your time, choosing the right place to live in can let you enjoy the city to its best. Though the city is well connected with Bengaluru metro, BMTC bus services and not the forget the Ola and Uber. It can be hectic to spend most of your time travelling. Here are some points to keep in mind before choosing a place to live in
If you want your home to be peaceful, you could choose to live towards the outskirts on Bangalore, where population density is relatively less. Areas that might suit you are Hebbal, Yelehanka, Bannergatta road, etc. If you are the one who likes to have the best of both worlds, you would choose areas like HSR, Sarjapur, Jayanagar, Malleshwaram, Baswangudi etc., These places have quite communities but they are well connected to the most happening places as well.
Predominant IT areas in Bangalore are Electronic city, Whitefield, Marathahalli, Nagawara - with the population the development also grows, hence you should have no worries about basic essentials, connectivity and social life.
How to decide on the type of house 2 important factor decide the type of house you can rent
If a group of friends want to stay together than you can choose a large accommodation
Check out the cost of living in Bangalore before you finalise on your plan. Now, are you feeling overloaded with information and confused about where to live? Let me make your life a little bit easy, Let PropertyAngel find a suitable home for you. PropertyAngel is a property management company and a property rental platform. We provide personalised services, where you can just us your requirement and be rest assured you find a suitable property. Don’t waste your time scrolling through 1000s of ad posts on interest and calling a bunch of property owners. We provide Brokerage Free & Hassle-free rentals which you can trust. As a new age property-tech company with 860+ verified properties under our wing, we are a metrics-focused organization with Strong SLAs to measure our performance. We are deeply driven by Customer Happiness & Customer Transparency
We are your one-stop-shop for all your rental needs - from looking for a suitable property to fulfilling all legal requirements. To know more visit https://www.propertyangel.in/propertiesforrent.html or call us at 91-80-47095974 / 91-7406484455 We always take an expert opinion before making an investment and that has always been the general norm in any industry and it’s no different for Real Estate investments. Hiring the right property management company is important as they not only provide an experts opinion but they also help you execute your plans and reap the benefits on your investment. Real estate investments are generally high-value, capital-intensive investments worth in Lakhs/crores of rupees.  It makes perfect sense to be wise and hire a team who has the capability to take care of your investment as their own. Here is a quick guideline on the factors you must consider before handing over your property keys to a property manager How to choose the right property management company: 1 Sublet Rights If your property management company’s model is to sublet your property, then they can place tenants without your approval. This gives them more control than what is necessary. 2. Security Deposit Amount A good management company knows that the security deposit should cover damages to your property and rent arrears. This could amount to about six months of rent. If the company takes a deposit worth only 2 or 3 months’ rent, you need to be careful because this amount will not be enough in case the tenant causes damage to your property. 3. Control over Security Deposit Beware of the property management company wanting to keep a significant share of the deposit. Make sure that you talk to them and retain a majority share of the deposit, to have more control over proceedings. 4. Tenant Selection Process If the company refuses to have the tenants approved by you, then that gives you very little control over your property. Make sure that you have enough power to veto tenants that you feel can be tough to handle. 5. Tenant Information Even if you allow the management company to find tenants for you, you need to ensure that you have their contact details. In case things go south with the company, you should still be able to communicate with your tenant, and smooth out any issues they may have. 6. Control over Expenses In case the company spends money on the property without your approval and does not send the records over to you, you need to be wary. A good property management firm will always run the financial records by you and get your approval.  Answer the following questions and you will be able to rate your prospect Property Management Company or even a property manager out of 5
If the answer to all the above questions is YES then you can rate the property management company 5 on 5 and be rest assured that they will take good care of your property. If your answer is no for some of the questions then ensure you retain all legal and financial rights pertaining to your property before proceeding with the company you have chosen. It’s ideal to choose a company that lets you answer yes to all the above questions. Some companies will promise to get you a guaranteed rent every month. However, it would help if you accounted for the fact that in certain circumstances, that might not be possible. This not only leads to the downfall of the company but it pulls you down with it. For instance, the COVID-19 has brought out so much uncertainty, the best way to protect yourself is to minimize risk and maximize control over your property. The purpose of this guideline is to safeguard your interests and help you understand how you can keep your property safe. We recommend you go through these guidelines before choosing a property management company and reduce the chances of issues cropping up. I can proudly say that PropertyAngel fulfils all the above guidelines. PropertyAngel is a Property Management Company with Strong SLAs to measure performance As a new age property-tech company with 860+ verified properties under our wing, we are deeply driven by Customer Happiness & Customer Transparency Our goal is to maximize your rental income and to minimize your stresses. Benefits of signing up with PropertyAngel:
Want us to manage your property? Reach out to PropertyAngel or call us at 91-80-47095974 / 91-7406484455 In 2020, an average Bangalorean spends about Rs.17,926.10 per month as rent in the city centre. Sounds a little overwhelming right? Well, we often come across some common suggestion to reduce rent and I shall take this opportunity to inform you about them as well.  Direct Methods:
This also reduces the hassle of moving from place to place and getting adapted to new areas or environments often. Indirect Methods:
All these tips may be suitable for bachelors, but just imagine if you are a newly married couple or a family of 3 members or larger, would you still want to compromise on these essential aspects of a home? Why is that we always need to give up on our comfort to save some money? What if I told you, you could maintain your privacy, have a large place in the city centre and enjoy all the amenities and still save on rent. Now we are talking about the real deal. All you need to do is use your network of friends and family and engage in a referral scheme. I am very sure you all might have come across several schemes like this, but you may not have thought about the impact it might leave on your monthly rent. Sounds interesting right? All you have to do is refer a friend of yours to your landlord and avail a discount on your monthly rent. Find more friends and enjoy a much lower rent.  There are certain limitations to this concept, but I won’t leave you hanging, I will also tell you how you can overcome this hurdle.
This referral scheme does not exist in the unorganised real estate market and Landlords who own only one property won’t be able to extend such an offer. Make the wise choice of renting from a Property Management Company. A Property Management Company helps you find a suitable home for yourself. They have a large number of properties under their ambit which enables them to provide many offers like the referral scheme. Some referral schemes not only benefit you, but they also benefit who you refer turning out to be a win-win situation to both of you. With the rising cost of living in Bangalore, follow this tip to reap its benefits. Not just the referral scheme, also look out for seasonal offers from property management companies and enjoy the benefits. PropertyAngel offers you one of the best referral schemes in the market. Imagine referring a friend a month and saving up to Rs. 3000 in cash or as gift vouchers every month.* PropertyAngel is a property management company and a property rental platform. We provide Brokerage Free & Hassle-free rentals which you can trust. As a new age property-tech company with 860+ verified properties under our wing, we are a metrics-focused organization with Strong SLAs to measure our performance. We are deeply driven by Customer Happiness & Customer Transparency Benefits of finding a home at PropertyAngel
We are your one-stop-shop for all your rental needs - from looking for a suitable property to fulfilling all legal requirements. To know more visit https://www.propertyangel.in or call us at 91-80-47095974 / 91-7406484455 For a long time, homeowners are looking for the perfect guide to manage their property through a Property Management Company. As a service provider, Property Management Companies come up with new business models to make their services more valuable.
What is a Sub-lease agreement? It is a contract between the Owner and Tenant, which transfers the owner’s rights to exclusive possession and use of the property for a specific period of time to the tenant. Disadvantages of Sub-lease
In this case, the Property Management Company becomes your tenant and they have control over who they sub-let the property too. There is no scope for transparency and you will remain in the dark about who is using your property. Property Management Companies assure monthly rent in order to attract you to this type of model. However, in recent times, this model is proven to be highly unreliable. You should instead opt for a Leave and License Agreement. What is a Leave and License Agreement? This agreement is governed by the Indian Easement Act. Under this Agreement, you will only provide a license to use your property for a specific purpose and no transfer of right to possession. Advantages of Leave and License agreement
Under a Leave and License agreement you can clearly set out the purpose of License and therefore there is no scope for misuse of your properties as it is Illegal for the Property Management Company to use it for any other purpose. You can also have control over the choice of tenant. Click here to view a sample Leave and License Agreement. In simple words, you can pass on the headache of managing your property to a Property Manager and retain 100% ownership and control over your property. At PropertyAngel, we ensure to safeguard your rights as a property owner. We sign a leave a License agreement where we obtain the right to only manage, operate, rent and lease your property.  The above flow chart enumerates the process any good property management company should follow, and PropertyAngel does exactly the same.
At the Tenant Agreement Stage, after obtaining a No-objection from you, a leave and license agreement is signed between the tenant and PropertyAngel. A leave and license agreement are used as scope for misuse are minimal and its hassle-free for the property owner and the tenant. At every stage, PropertyAngel ensures to keep the owners informed to ensure transparency. Benefits of signing up with PropertyAngel:
Want us to manage your property? Reach out to PropertyAngel on call us at 91-80-47095974 / 91-7406484455 Are you a Property Owner? This is a must-read for you to ensure you aren't being taken granted by a Property Management Company. Essentially, Property Management Companies perform 2 duties: 1. Maintenance and management of your property Property Managers will ensure that your property is always spic and span. They will ensure that all utilities are paid on time and your property is being safeguarded. 2. Guarantee good returns of investment on your property Property Managers ensure that your property gives you a good return on your investment. Here they handle operations, maintenance, and administration of property rentals. A good Property Manager will charge you on the basis of the service they provide. However, Property Managers bring their expertise in providing you with the second function which is to make sure that your property is not idle and it earns some income for you. There are 3 models under which Property Managers or Property Management Companies work under: 1. Minimum Guarantee Model Here, the Property Management Companies assure you a minimum rent for your property. Advantage: You will get rent for your property even if your property is vacant. Disadvantage:
Benefit to Property Management Company:
2. Commission on rent The Property Management Company takes a percentage of your monthly rent as management fees. Advantage:
Disadvantage:
Benefit to Property Management Company:
3. Fixed Fees Here, you as a property owner need to pay the Property Management Company for their services of maintaining your property. This ideally works only when you are not willing to let your vacant property on rent but just need someone to take care of your property in your absence. This is an expense from your pocket while not receiving any income from your property. In reality, a property management company uses either of the above models or a combination of 2 models. Besides management fees, owners are required to pay the cost of utilities on actuals. For property repairs, you might have to pay a supervision fee along with the actual cost of repair. Since there is no hard and fast rule on the charges, Property Management companies can also charge you for any other services they provide. Now that you have a fair idea on what charges you might have to incur, it is also important for you to know a few key points that will help you shortlist a property management company that suits you.
PropertyAngel is a property management company which follows the commission basis model. This option provides the maximum benefit to you as a property owner and ensures complete transparency. PropertyAngel does a leave and license agreement, which safeguards your rights as a property owner. Services of PropertyAngel which will interest you:
To know more about PropertyAngel visit: https://www.propertyangel.in/ or call us at 91-80-47095974 / 91-7406484455 Property Management Services are only for those owners who don’t reside in the same city where their property is located….what ??? is this true ?? …. Let me bust this Myth for you !
A lot of effort goes into managing a property and you don't need any excuse to avail the services of a Property Management Company. Let me tell you how a Property Management Company can benefit you as a local owner Marketing your property Gone are the days when To-let boards attracted eyeballs. We live in a new age where everything happens on the World Wide Web, which means someone could be looking for a house in Bangalore sitting right across the globe. In such circumstances, marketing your property to get suitable tenants could be a task. Why put the effort to get a Masters Degree in marketing for a single property when you can reach out to Property Managers to do it for you ? Expertise of Property Managers enables them to judge the right place to attract the highest potential tenants. They can also market your property in multiple platforms to boost your tenant leads Managing calls Imagine receiving multiple calls from potential tenants -you won't want to miss them ...but you definitely do get tired of reciting the same details again and again to each caller. Property Management companies reduce this burden for you. They attend unlimited calls and shortlist tenants as per your specifications. They also verify your tenants to ensure that your property is in safe hands. Rent Analysis We sometimes might set the rent of our property too high or Sometimes we might set the rents too low ….In both cases we lose out, either our property is mostly vacant as in the 1st case or we are constantly under paid as in the 2nd case. Rent varies just like the stock market. Multiple conditions affect them, such as: location , access to amenities, connectivity, development in the surrounding are and not the forget our economic conditions Property Managers have the expertise to arrive at the most optimum rent to maximize on our income and also ensure that your property is tenanted. Managing tenants Most of the property owners are busy with a day job. Coordinating with potential tenants for inspection and scheduling a convenient time that suits both is a hassle. Property Management companies have personnel who can take tenants for inspections. We don't need to travel from corner to corner, taking an excuse from work to show tenants the house for inspection. Maintenance of Property As a homeowner we might face maintenance issues especially when the property is vacant. Be it pest or seepage - it’s the responsibility of owners to maintain the property in a livable condition. This task can be handed over to Property Management companies who can get all your maintenance work done and ensure your property is always in its best conditions. They find the best vendors and supervise the work, keeping you tension free. Property Inspections A property owner is not tension free once the property is rented out, we must also ensure that the property is inspected on regular intervals to ensure that the property is in good condition. Property Management companies schedule regular inspections so you can take a back seat and enjoy your rent and take the inspection burden off your shoulders. Rent Collection You are lucky if you have a tenant that pays you on time ! But most of us are blessed with kind tenants who need a nudge to pay their monthly rent. Keeping a track of these payments could be a bit annoying and at some point it might put you in an embarrassing situation. Don’t want to nag your tenant ? … simply pass on the duty to the Property Management Company. They take up the responsibility to collect your rent and ensure it's in your bank, Ready for you to spend it ! We all should realise that a property is always a burden when it is unoccupied. The ‘n’ number of maintenance issues and the safety of the property is an ongoing issue. In the current market many homeowners have bought properties for investment on bank loans and the pressure of EMI can only be mitigated if the property is tenanted. Every owner can only enjoy the benefits of their property when it generates some income. When the need of the hour is to wisely manage your investments, then who best can ensure maximum return on your investment than the experts in the area of properties -- Property Management Companies. Now all of you might be thinking if the benefits outweigh the costs …. It is here that we should realise that in performing all the above duties as a property owner we shell out cash more often than we realise - small amounts over a period of time may go unnoticed but they sure do impact our pockets. As the old saying goes - Penny wise, Pound foolish - it’s better to acknowledge an expense than have no control and have unnoticed expenses. The benefits definitely weigh more than the costs and it's best to take aid from a professional to manage your property. PropertyAngel is a Property Management Company with Strong SLAs to measure performance As a new age property-tech company with 860+ verified properties under our wing,we are deeply driven by Customer Happiness & Customer Transparency Few service which may please you as an owner of your property:
Our goal is to maximize your rental income and to minimize your stresses. To know more about us please visit our website: https://www.propertyangel.in/ Reach out to us on: 91-80-47095974 / 91-7406484455 OR hello@propertyangel.in We all wish for a Genie to magically find us a comfortable house without wanting to go house hunting surrounded by middle men and paperwork.
Finding a suitable property owner in a peaceful neighborhood especially without a judgemental next door aunty is our goal for this century Property Managers are the Genies we are looking for ...How you may ask ? Continue reading to know how Property Management Companies make our life so much easier ... Most of us know Property Managers as end to end service providers to property owners. They provide a wide range of services from maintenance to tenant management, So don’t you think it's a good place to find a suitable house ? 1. Wide Range of Properties Property Management Companies have a wide range of properties under their ambit. Whether you have a large extended family or just planning to move in with your buddy there is a high chance you will find a suitable abode. 2. Condition of the property Most of us might have come across properties which are not well maintained, and the effort that goes into it to make it livable ...Ufff! I don't even need to start talking about that ... But property managers on a regular basis ensure that the property is in good shape, hence you can always walk into a welcoming home. 3. Verified Owners Isn’t it biased that only tenants have to be verified ? It’s a concern for every tenant to have a verified property owner as well ... Recent instances of tenants being duped by fraudulent property owners is an issue to be addressed. Property Management companies verify owners and ensure they possess correct title deeds to the property before signing them up 4. Tenant Support As tenants we need to reach out to our owners on a regular basis for different queries be it relating to maintenance requests or any documentation work such as name/ address change. Property Managers come to our rescue, it's much easier to reach out to them. The turnaround time is considerable less keeping in mind their professional expertise in solving our queries 5. Security of Deposits Security deposits are given to property owners as a measure of security and are used to pay for any damages or loss of property. Though it safe guards the owner’s interest, the tenant's position is in a bit of a dilemma - whether he will be able to recover this big sum ! Property Management companies put this dilemma to rest. As they are the point of communication between tenants and owners they ensure that Security deposits are given back to tenants on time and ensure that unreasonable deductions are not made. 6. Offers and Free Services Property management companies often put up offers or provide free services such as maintenance requests, sanitisation and many more. It not only makes it light on the pocket but it also adds joy in enjoying free services. 7. Rent Receipt Many of us may not know that rent can be claimed as a deduction from income while filing for our Income Tax Returns, but there is a small catch to it …. It requires a rent receipt. Asking owners to provide a rent receipt is far fetched, but Property Management companies as part of their process provide rent receipts. 8. Single point of contact Renting a house isn't easy business, we need to communicate to multiple stakeholders, be it brokers to find a house or an agent to complete the legal paperwork and not to forget the owner. Property Management companies cut down all this hassle. We need to only contact one person for all our services from start to end. 9. Trustworthy Property Management companies have a reputation to maintain in the market and they take this very very seriously. And that is good for tenants as we can be rest assured that they won't go back on their word …. But can we trust an individual owner the same?? 10. No Judgment Handling prejudice owners is an agonising situation and everyone hopes to not find themselves in such situations. There is constant hesitation in the minds of tenants about the misconceptions some owners may have be it regarding their profession or lifestyle. But gone are the days when we need to worry about being judged. Any reputed Property Management Company will have 0% tolerance 11. Realistic Rents It’s the owners right to ask for appropriate rent for their property, however many times they do not reflect the market rates. Even after some serious time consuming negotiations deals fall through Property Management companies actively keep tabs on the market trends. Their rent analysis gives them a cutting edge to ensure that properties are let out at win-win rents Property Managers keep in mind the paying capabilities of tenants and the intention to provide maximum return on investment to the owner. Hence they always arrive at an equilibrium figure. Is it possible to avail all these benefits for absolutely free ? YES ! and it only happens @ PropertyAngel We are your one stop shop for all your rental needs - from looking for a suitable property to fulfilling all legal requirements. To know more visit https://www.propertyangel.in or call us at 91-80-47095974 / 91-7406484455 In this blog, we will talk about the different Property Rental models and types of Rental agreements. The idea is to educate the tenant and londlord about what options are available and what to be wary of.
Now, before we speak of legal agreement formats, lets see what are the rental models in India today: Monthly Rental: In this model, wherein the tenants pay the homeowners a fixed amount every month. In the case of leave and license and rental agreements, homeowners have the freedom to change their rental rate. When it comes to leasing agreements, the rental rate is fixed for a particular period. However, in all these cases, the homeowners receive a monthly rental income. One-pay lease: A single-payment lease is when tenants pay the entire leasing amount upfront, to get rid of monthly payments. At the end of the lease period, which is typically 5-10 years, the parties can choose to do the same once again, or break off their relationship. At the termination, the entire upfront lease amount is returned to the tenant, without interest. Landlords who are business owners usually use this option if they can use the funds in their business, without having to sell the property. Tenants use this option when they need stability. Rental Agreement Formats Now, there are 2 widely known standard rental agreement formats - Leave & License agreement and a Lease Agreement. While the One-time lease can be signed using the Lease agreement, there are 2 options for those use in the Monthly Rental Model: Lease Agreement: In the lease, the landlord and the tenant mutually agree to fixed terms and conditions, such as the rent, rules regarding pets, and duration of the agreement. Neither party can change the agreement without written consents from others. Likewise, the landlord can’t arbitrarily force the tenant to move or raise the rent since it would be violating their contract. Hence, he or she has to wait for the expiration of the lease agreement to negotiate. So the lease offers more long term security to both parties. Such contracts last for a fixed period of time, usually between six to twelve months, and it binds both parties to the lease. These contracts also clearly define the expectations of both parties, helping to protect the best interests of both. As per Section 105 of the Transfer of Property Act, lease agreements serve as contracts between the lessee and the lessor regarding the right to possession of a property. They tend to be both transferable and heritable. Also, they are not affected by the sale of the property and lasts until the date of termination. Leave and License Agreements A Leave and licence agreement grants an individual a right to do something within a property for a set duration, activities which in the absence of a license might be considered unlawful. However, this does NOT give the party an interest in the property, as they only have the right to use or occupy the premises. Such licenses come under the Indian Easement Act. The main difference being exclusivity of possession. In case an agreement gives an individual exclusive right to possession, it is a lease. If it only gives the party a right to use the property for a certain purpose or in a certain manner, then it is a License. A Leave and License helps solve both eviction and rent-pricing problems and take place between a licensor and licensee. Also, as they do not lead to any transfer of duties, responsibilities and obligations, changing these agreements is very easy. Unlike lease agreements, they do not give the tenant any inheritance or trader right. Also, these come to an end if a property is sold to someone else. Furthermore, it does not require the sending of any notice period, but most licensors end up doing so to make the process fairer. At PropertyAngel, we use only the Leave & License agreement for all our tenants, as that is most hassle-free. |
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