​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

1. The company doesn’t want sublet right?
2. Does the company allow you to control the security deposit money?
3. Does the company allow you to take part in the tenant selection process?
4. Does the company share tenant information with you?
5. Does the company run all the expenses by you?

 
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:

• Keep control – You choose your tenants. You control every penny spent.
• Only pay for performance – You pay as you go and nothing upfront.
• No hidden charges – All charges are transparent. Even maintenance costs are standardized and shared with customers.
• Hassle-free – Complete hands-off experiences with a personalized support & field team
• Verified tenants – Tenants placed only after a background verification & document check
• Detailed audits and reports – Get detailed reports for rent, expenses, Six Month Property check report, Inventory check Report, Tenant Move-in & Move out Reports, Agreement Renewal Reports.

 
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:

• Get a roommate

A roommate to share your rent and your living expenses helps take some burden off your shoulders. This way you would each be able to enjoy a large space and be located in the most happening areas of Bangalore.
 

• Settle for less space

The smaller the area, the lower your rent would be. But ensure not to cramp yourself up in a tiny space as it would be difficult for you to live comfortably for a longer duration.
 

• Sacrifice few amenities

Opt for Semi-furnished or unfurnished houses as they turn out to be less expensive compared to fully furnished homes. You could rent out furniture and appliances to meet your most basic requirements.
 

• Sign a long term lease

Staying in the same palace over a period of time will ensure that your yearly increase in rent is tied down to your base year value. Long term lease also gives you a bargaining chip to negotiate rent as any landlord would want a longer and steady income verses a short span rent.
 
This also reduces the hassle of moving from place to place and getting adapted to new areas or environments often.
 
Indirect Methods:

• Get a rent receipt

Always get a rent receipt from your landlord as this helps to reduce your tax burden. If your employer makes deductions for Income Tax from your salary, submitting your rental agreement and rent receipt will help you save tax under HRA (House Rent Allowance).
 

• Pay rent on time

This may not directly help you save on your monthly rent, however, timely payments help build your CIBIL score which can help you avail credit at a lower cost on a future date.
 
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

• Save money - No brokerage & Reasonable Rental Rates
• Personal assistance - Personalized Recommendations & visits by Dedicated Rental Manager & Field Assistant
• Save time - 100+ options of Verified Properties in your desirable localities with Video Walkthroughs
• Protect rights - Standard rental agreement that protects tenancy rights, with no sudden hikes and/or unreasonable charges or deductions
• Health and safety - Professionally cleaned and sanitized homes
• Secure deposit - Secured Security Deposit by 100% transparency on terms of every single deduction & documented handover condition

 
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

• Tenant has claim over possession of your property
• Tenant has the right to sub-let your property

 
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

• Your property can be used only for the purpose mentioned in the agreement
• A tenant does not have an exclusive right to possession of your property.

 
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:

• Keep control – You choose your tenants. You control every penny spent.
• Only pay for performance – You pay as you go and nothing upfront.
• No hidden charges – All charges are transparent. Even maintenance costs are standardized and shared with customers.
• Hassle-free – Complete hands-off experiences with a personalized support & field team
• Verified tenants – Tenants placed only after a background verification & document check
• Detailed audits and reports – Get detailed reports for rent, expenses, Six Month Property check report, Inventory check Report, Tenant Move-in & Move out Reports, Agreement Renewal Reports.

 
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:

• The Property Management Company will ideally ask you to sign a sublease agreement with them where they will acquire the power to sub-let your property to preferred tenants. Here you will lose complete control over your property.

 

• You would ideally get lower rent than the market value

 

• It is difficult to ensure monthly payments when your property is vacant, hence the chances of default are very high.

 
Benefit to Property Management Company:

• They will take a certain amount as Management Fee. It would be 1-month rent or 15 days rent based on the Company and specifics of the property.
• They will rent out your house at a higher value then the minimum guaranteed value and the difference is also taken by the company.

  2.  Commission on rent  

The Property Management Company takes a percentage of your monthly rent as management fees.
 
Advantage:

• You only pay management fees when your property is rented out.
• You will get the best possible rent in the market as the company’s incentive is directly proportional to your property rent.

         
          Disadvantage:

• You don't earn income until your property is rented out

 
Benefit to Property Management Company:

• They get a percentage of your monthly income.

 
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.
 

1. Ensure you do not lose control over your property
2. Ensure you get a steady income, even if you don't monetise immediately. Slow and steady if definitely your guiding star here.
3. Ensure you get a detailed statement of expenses on your property.
4. For any repairs and maintenance work, the company should ideally give you an option of vendors to choose from so that you are aware of the market rate.

 
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:

• Keep Control – You choose your tenants. You control every penny spent.
• Only pay on Performance – You pay as you go and nothing upfront.
• No Hidden Charges – All charges are transparent. Even maintenance costs are standardized and shared with customers.
• Hassle-free – Complete hands-off experiences with a personalized support & field team
• Verified Tenants – Tenants placed only after a background verification & document check
• Detailed audits & reports – Get detailed reports for rent, expenses, Six Month Property check report, Inventory check
• Report, Tenant Move-in & Move out Reports, Agreement Renewal Reports.

 
To know more about PropertyAngel 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. 

How Do You Know If You Can Trust Your Property Management Company?

​Here’s a quick look at some of the factors you need to consider before choosing a company to manage your property


1. Does the company have the right to sublet your property? If a management company’s model is to sublet your property, then they can place tenants without your approval, giving them much more control than what is necessary.

2. How much deposit do they plan on taking from the tenant? A good management company knows that the security deposit should cover damages 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. Who controls the deposit money? If the property management company wants to keep a significant share of the deposit, then you need to be careful. Make sure that you talk to them and retain a majority share of the deposit, to have more control over proceedings.

4. Does the company allow you to take part in the 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. Does the company share tenant information with you? 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. Does the company run all the expenses by you? 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.
 
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. 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 as well. We recommend you go through these guidelines before choosing a property management company and reduce the chances of issues cropping up.