Non-resident Indians (NRIs) have traditionally been an important element of the Indian real estate investment community. However, certain prerequisites must always be met for an NRI to invest in Indian real estate. According to the Foreign Exchange Management Act (FEMA), an NRI or a Person of Indian Origin (PIO) can buy property in India as long as it is not agricultural land or a farmhouse. NRIs are also drawn to Indian commercial real estate, a different type of investment that provides massive returns. The depreciation of the rupee and the present market conditions have allowed non-residents to purchase properties in India at a lower cost. If you are an NRI seeking investment opportunities in Indian real estate and need some helpful pointers on NRI property management services, here is a checklist of items to consider:Consider the restrictions on the number of properties for NRIsThere are no limits on the number of properties an NRI can acquire in India. Commercial and residential properties are included in this category. If rented out, the rental income comes with some tax, regardless of residential status. No tax is payable if the property is acquired for personal use. Know the rules about power of attorney for NRIsNRIs do have an option to give POA to others to complete the property buying process in India. However, the same must be signed in the presence of two witnesses who should physically be present for signatures in the Indian Embassy. A local notary official should mandatorily attest to the signatures if they are not. After that, the document should be certified by the Indian Embassy, and the registration should be completed within three months from the date of execution. The registered POA can further be used for several purposes such as mortgage, leasing or renting out, managing disputes, and entering into contracts on behalf of the NRI. If you hire NRI property management services, transferring the POA process will be smoothly done by them. Check if NRIs avail loans for property in IndiaHome loan is a significant factor affecting property investment decisions. Like all the other normal residents, NRIs, too, are eligible for availing of a home loan in India. However, it needs to be repaid in Indian currency only. This can be done in either of the following ways:
Though FEMA (Foreign Exchange Management Act) requirements govern NRI investments, the RBI has eased the restrictions for non-residents with an Indian passport. Furthermore, an NRI's spouse is entitled to jointly buy one immovable property in India and the ones listed above in this blog. However, this must be done in compliance with FEMA Regulations. Professional NRI property management services can educate you and help you out on this front. Real estate in India has grown more efficient and transparent in light of the current market conditions with the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Goods and Services Tax (GST). Whether a resident or a non-resident, the sector currently provides an environment suitable for property investment. Why should you consider hiring NRI property management servicesNRI property management services are aware of the important rules And regulations For NRIsBeing abroad and balancing everyday life there and back home in India may be challenging. Because the real estate sector is so heavily impacted by local government, it can be difficult for an NRI to keep up with crucial laws and regulations that must be followed. By hiring property management services, you can be confident that you will receive all of the essential updates to help you maintain your property. Who to hire- Real estate broker or NRI property management services?When we travel abroad, we may try to delegate property management through close family members; that relative may engage a local real estate broker to do the task. However, neither a close relative nor a real estate broker will have a full-time crew dedicated to manage and look after your investment property. If you have purchased the property as a secure investment – like with any investment – it must be maintained to provide you with the desired long-term profits. A property that is not well-maintained, for example, in terms of upkeep, tenant management, and vacancy/occupancy, may not yield the desired results. Therefore, NRI property management services should be hired to manage all aspects of your property from start to finish to maximize your return on investment. NRI property management services have standard operating proceduresWhat is the significance of standard operating procedures? They are objective, goal-oriented, and specified to get the greatest results. PropertyAngel has standard operating procedures that cover all bases. From property analysis to tenant management, we have you covered. This also makes it simple for you to be informed about the state of your property; you receive timely updates from us, and you are constantly kept up to speed on what's going on with your property in India. NRI property management services can help you deal with unexpected circumstancesAs we all know, the pandemic has thrown the globe into unforeseen and unprecedented conditions. As a result, many householders have not been able to return to India throughout the year when the country was initially affected hard (March 2021). In addition, due to pay cuts and layoffs, several tenants demanded rent reductions, modifications in agreements, and the right to vacate the property without having to serve a notice.
It may not be easy to rely on close family or real estate brokers. Professional NRI property management services are more diligent and prepared to respond to events. At PropertyAngel, we provide the most competent NRI property management services in Bangalore. Our qualified staff operate efficiently, keeping you up to date about your property in India.
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Metropolitan cities are expanding, and you never know who will come to rent your property. The individual might be from the same or a different city, state, or foreign country. Can you trust a renter if they don't come with a reference? Indeed, rental management Bangalore can be a challenging thing. It's also worth noting that you might be held responsible for not checking on your tenant, especially if they're involved in any illegal activities. As a result, it is typically preferable to do a background check of your prospective tenants before signing a Rental Agreement with them with the help of a rental management company. Here are a few options for verifying your tenant- Checking of tenants through self-verificationYou may also do a quick background check on the prospective tenant. This would take some time, but it does not take much work. You may use this as a major technique for cross-checking your renter because you will require government identity proof for the Rental Agreement. You can ask the tenant to provide references in the city, or if the person is new to the town, they can provide references from their previous city. You may verify with the organization the prospective tenant works for; if they work for a reputable firm or MNC, the HR department will certainly have done a background check. Credit and criminal background checks may be more difficult to perform independently. But it can be carried out smoothly through a rental management company. Requesting the tenant for their basic detailsIt's a requirement for prospective tenants to provide you with all the necessary details. Based on these details, you can determine if the tenant would be the right fit for you. A rental management company can help you determine if the tenant is genuinely based on the following details:
Check if the prospective tenant has sufficient IncomeThe tenant's Income will determine if they are capable of paying the initial deposit and the monthly rent. There is no consistent benchmark for deciding how much money is sufficient, but a tenant who works in a good company or owns a reputable business will pay the rent and the rest of the bills on time. To verify your Income, the tenant screening can include an employment check. Also, you can demand proof of Income in the form of payslips or bank statements, especially if they run a business or are an entrepreneur. You can check with the tenant's previous landlordsWhen you contact the references provided by the tenant, they can give biased opinions about the concerned person. If you wish to be certain about your tenant, you can contact their previous landlords. This is your opportunity to find out a lot of honest information about the tenant. Previous landlords might provide truthful information about the person as a tenant. You may ask them the following questions:
Police verification of tenantsThe property owner must usually provide the appropriate tenant information to the police and obtain a police clearance certificate. Landlords in Bengaluru, for example, can get the tenant's police verification application form from the Karnataka State Police website. To do this, you must be a Bangalore resident, and the address to be checked (e.g., the previous residence of the potential renter) must also be in Bangalore. If there is a foreign national, you can obtain a Police Clearance Certificate (PCC) for Foreigners. There is also a Police Clearance Certificate for Indian citizens. Hiring a rental management company will make things easy for you by doing all the groundwork on your behalf. Tenant verification through PropertyAngelIf you work with PropertyAngel, you won't have to be worried about tenant verification. Tenant verification is a part of the process carried out for finding good tenants. We have an extensive tenant verification and screening process to ensure that you land with genuine tenants. You have to call us or send us a message, and someone from the team will contact you to discuss your requirements.
Remember that the majority of landlords have encountered some tenant-related fraud. The amount of money lost due to this is believed to be in the crores! Not paying the rent, property damage, and legal expenses are all factors that contribute to this loss. Avoid these headaches by having your tenant checked with the help of a reputed rental management company. Hiring a property management company can be daunting, especially if you've never dealt with professional property managers before or had a poor experience and don't know who to trust. You want to work with a property management company that is a suitable fit for you and your properties. Here are five things to consider when looking for a property management company1. Hire a professional property management companyExperience is important, and investors will search for local and industry experts. Choose a property management company that has managed properties for a long time and knows what works and doesn't. You'll require extensive knowledge of landlord, tenant law, and rental agreements. The company you hire must have extensive experience in safeguarding your interests. It is also critical that you select a property management company with the necessary expertise and skills for the kind of property you own. For example, using a property management company that specializes in single-family houses is usually not the ideal option if you have multi-unit residences or a place in a commercial complex. When it comes to renting your home and finding tenants, hire a company with the necessary property management experience in all kinds of property. 2. Check the reputation of the property management companyThe reputation of a company is important because it shows you what type of experience other clients and customers have had with that property management company. Examine customer reviews and spend some time on the company's website. Do they give informative and important information, or do they charge a management fee? It would help if you also looked at a company's reputation in the property management business. Speak with people who do work on properties maintained by that firm. Inquire with other investors about whom they work with and what they know about the company. 3. The property management company should have effective systems and processesWhen you approach a property management company, they should be able to tell you exactly what they do in almost every circumstance that may happen. They should have a consistent process to handle rental agreement procedures of tenants and landlords. They should also have a proper tenant screening system to ensure that the landlords find genuine and trustworthy tenants. Inquire about what they do when a tenant fails to pay rent and what would be their further plan of action. You should hear precise plans and feel confident that they have procedures to handle difficulties. Every property is unique, and there should always be an opportunity for flexibility and personalization. A smart property management company, on the other hand, would automate and systemize whatever it can to offer its services efficiently and effectively. 4. Investing in property management softwares improves efficiencyWhen looking for a property management company, always inquire about what kind of technology and software they invest in. By visiting their website and examining their online presence, you can quickly picture their desire to adopt the technology. Look for a business that has developed cutting-edge software for this sector. In today’s age, rent can be collected and deposited online. It would help a great deal if the company has an internet portal where you can view statements and reports, especially if you're a Non-resident Indian owning a property in India. Technology and good property management software facilitate communication between managers and owners and between managers and renters. 5. Determine if the property management company maintains transparencyA property management company should adapt to the new ways of working. Various property management software accounting statements should be complete, precise, and simple to understand. Your income and spending should be visible, and everything should be clear. A competent property management company will provide web portals and other tools so you can see how much your property is making you earn and spend on a monthly, quarterly, and annual basis. These are just five of the qualities you should look for in a property management company. There is a lot more to think about. Please get in touch with PropertyAngel today if you are looking for a property management company. How to find a good property management company?1. Ask for referrals in your immediate networkTalking to individuals you know and trust is a wonderful place to start when looking for a property management company. Consult property owners, realtors, friends, college networks, real estate investment networks, and contractors. But don't blindly follow their advice. Instead, inquire about the client’s good and bad experiences about the company. It would help to inquire how many clients they handle and how many hours they can devote to you each week. A self-employed property manager or a broker would not be able to efficiently help you with your queries and problems related to property management. On the other hand, a large clientele of a professional property management company clearly indicates that the company is reliable and genuine. 2. Research about property management companies onlineYou may enquire with the property management company you're currently thinking about and also learn about new ones. You can identify a decent property management company active in your region. Once you've narrowed it down to a few names, go over each management firm's website, including mission statements. Reading the reviews of the companies on the internet might help you make an informed decision on which company to choose. ConclusionIt takes effort and research to choose a competent property management company. Your property is your source of income, and entrusting it to someone else may make or break your investment. Referrals, independent research, in-person meetings, and inquiries before signing up may all assist you in selecting a property management company that can safeguard and expand your investment profits on your property.
We understand the innumerable problems you have while looking for tenants, and you may not want to waste too much of your efforts screening a tenant, especially if you live outside of India. Finding a renter, renting out your home, and establishing a connection with the tenant from afar can be hard if you are not in the nation where your property is located. We at PropertyAngel understand the difficulties you go through. As a result, you can rely on us for your property management requirements. When you choose us to manage your property, we treat it with the highest care, and our professional solutions handle any tenancy issues so you can relax while we manage it. While many people desire to buy their own houses someday, renting is still a very common and convenient alternative for many. A rented home is considered a temporary measure by some people until they realize that it is time for them to buy a house of their own. Getting a house for rent is crucial in any case. However, just like owning the right place, renting a home is not a 'one-size-fits-all' option. Searching for a perfect tenant and landing with the 'perfect fit' has its obstacles. There are many different aspects to consider before renting a home, including the location, type of property, number of bedrooms required, your rental budget, etc. Once you've determined all of this, you may begin your search. But, hiring a property management company can greatly reduce the hassle of finding tenants. Given Below Are Some Property Management Pointers When You Are Looking To Rent A House:Access To Amenities One of the most appealing benefits of renting a house rather than purchasing one is the flexibility to move if one property does not work out as well for you. Once you have finalized the budget, it is necessary to narrow down the locations of rental houses based on accessibility to either your workplace or children's school - preferably (but rarely) both. This reduces transportation costs and time, resulting in a better work-life balance. Life will be difficult if you locate a beautiful property. Still, it is located in the middle of nowhere- where accessibility to important aspects such as schools, markets, hospitals, etc., is not easy. It would help to consider how close stores, supermarkets, public transportation, and health care are to the house you are hoping to rent. The farther you are from these essential commodities, the more money you will spend on them. If the chosen location is a suburban area, convenient access via private and public transportation must be present. Alternatively, one may wish to reside near the place where their office is(where rents may be higher). This is possible to adjust the commuting expenditures from a distant location with the higher rent in a nearby locality. Depending on your needs, a property management company will help you find the best house. Assess and select the property carefully Once the search is completed, the shortlisted homes must be personally visited. The property must be inspected for ventilation, natural light, water, and power supply, if any damage is present, including leakage, stains on walls, electrical and bathroom fittings, etc. Ideally, one should strive to look for damage-free property. Failing to meet these basic requirements indicates inadequate property management. Thorough research The tech-savvy people understand well that the option to explore rental houses online reduces the pain of the entire house-renting quest. In reality, several real estate portals display rental housing alternatives in a certain area. Some are posted directly by owners, while most are posted via brokers. If you get a rental home through an agent, you have to pay them one month's rent as their brokerage fee, which can burn a huge hole in your pocket. Social media platforms such as WhatsApp and Facebook groups have also become an informal and popular means of finding renting choices. For example, to avoid paying broker costs, many owners publish their listing on the WhatsApp group of the relevant housing society, spreading it to a broader network of possibly interested renters. Such methods of finding rental options can be extremely time-consuming. However, property Management companies like PropertyAngel will thoroughly understand your requirements and help you find the property that suits your financial budget and location convenience in the best possible way. Ensure that security is present Aside from determining if the property is in a secure neighborhood, you should also decide whether or not it has enough safety and security systems. For example, look for security guards in the building, CCTV, intercom systems, etc., or see if they have a security management system. In addition, look for window grills, locks on the main entrance, and fire alarms. As a part of property management, the landlord is responsible for ensuring that you live in a secure and threat-free environment. Check the Condition of the House How has the house been looked after? If the home is heavily damaged from the inside, it's best to avoid it. The owner may apply a fresh coat of paint to hide cracks and water damage, but you will notice these defects if you examine them closely. If the house hasn't been painted yet, request that the owner should do it. It is common practice to paint the house before new tenants move in. If the owner says the painting is already done, find out when it was done. If the surface of the walls appears to be sloppy and uneven, it indicates that the landlord's help was not at-par. This might also suggest that the plumbing, electrical wiring, etc., were installed improperly, and property management needs more attention. Conduct a water check Check to see if the house has a constant water supply or if there are any water-related problems. It is also necessary to determine whether the water source is a bore well, the corporation's water supply, or water tankers. Next, check the water pressure in the pipes; water from the taps should never be leaking. Finally, check if the residence comes with a water filter or if it needs to be purchased. Understand how your landlord and neighbors are Try to figure out what type of person your landlord is when you communicate with him. If he attempts to micromanage everything that happens in his house while you are living there, it is not a smart idea to move there. On the other hand, sometimes you get lucky and get a fantastic landlord, but you're stuck with nosey or loud neighbors! Keep an eye out for both these aspects and make a decision accordingly. Rental Agreement The rental agreement is the final and most important step in property management, acquiring the right rental home, and living in the desired comfort and certainty. Therefore, after negotiating the price, the rental contract information must be carefully studied from a legal perspective. Termination provisions, contract dates, fines, repair expenses, visitor limits, rent renewal, escalation, etc., are all important considerations. This is critical for financial planning because more expenditures are to be considered while renting a property than simply paying the monthly rent. Keep a record of the rental agreement's terms and conditions. If you do not understand a contract well, or if there are clauses that you do not agree to, do not sign it. Instead, inform the landlord that the terms are unacceptable and request that they be corrected before you sign this rental agreement and move in; otherwise, it will be too late to change anything. Learn more about how to create a Rental Agreement here. Owning a residential or commercial rental property may be an efficient method to generate money, but generating profit from that investment is not as simple as it may appear. There are multiple aspects involved in generating decent revenue from a real-estate venture, and newbie property owners sometimes make mistakes that can cost them a fortune. Professional property management services can be a lifesaver in this regard. Here are just a few of the many advantages of hiring professional property management services:1. Property Management Services Help You Choose The Right Tenants Each passing day that your property remains unoccupied will cost you money, and owning a property—even if it's a very desired one—doesn't guarantee that you'll be able to lease it. It also does not ensure that you will surely get good tenants who give you the best pricing. An effective advertising and marketing strategy is required to find genuine and reliable residents. Hiring property management services give you access to a team of qualified specialists who understand the market and come with the know-how to properly sell your home to the correct set of people. In addition, they maintain all the latest property listings, promote your property on several channels targeting desired renters, rigorously screen and interview new residents, and proactively deal with all the complaints or maintenance needs. As a result, property management services help you ensure good and loyal residents who rent your property. 2. Property Management Services Help You Reduce Maintenance Costs. Commercial and residential buildings are not self-sufficient. It is estimated that property owners spend more than 20% of their rental income on maintenance alone. So if you're in charge of the upkeep of an investment property, you'll need to know the right places to go for the correct services and supplies. If you don't have access to the right resources, you may have to spend more money than required, which reduces your profitability. On the other hand, if you pay too little, you may not get the quality and dependability you want, causing you to solve the same problems repeatedly. Property management services can assist you in developing and implementing a preventative maintenance plan to minimize total system failure and downtime on your property. As a result, you can extend the life of high-cost maintenance equipment, thereby lowering your overall maintenance expenditures. 3. Property Management Services helps in the onboarding process of new tenants Property management services will handle all the legal aspects of your deal with the finalized tenant. They will take care of everything on the legal front- getting the rental agreement documents ready and ensuring that the tenant agrees to all the terms before signing it. They are also sure that there lies transparency between both parties. 4. Systematic Rent Collection Process & Property Management System Many landlords make the mistake of believing that everything will go well once the tenant signs the rental agreement. But will you be able to manage it personally? Property management services alleviate concerns by implementing time-tested processes, tools, and rules to assist in collecting rent and other expenses. They also have mechanisms to increase the rent and convey the rationale to renters courteously. 5. Property Management Services Save Your Time As the saying goes, time is money. Even if you have a few properties, the obligations of property management, which include screening tenants and dealing with complaints and repair requests, may add up to a full-time job. However, property management services have the necessary structures and resources to lease your property, qualify tenants, collect rent, and handle repairs at affordable costs. As the saying goes, time is money. Even if you have a few properties, the obligations of property management, which include screening tenants and dealing with complaints and repair requests, may add up to a full-time job. However, property management services have the necessary structures and resources to lease your property, qualify tenants, collect rent, and handle repairs at affordable costs. Special services and amenities can increase the attractiveness of your property to present and potential renters, but different aspects appeal to various groups. For example, your property management services can offer additional upgrades or strategic enhancements, such as more parking, vehicle charging stations, on-site laundry facilities, or package delivery lockers, based on insights collected from market research and resident surveys. These added additions have the potential to attract more people, boost the value of your home, and increase your revenue stream. 6. Property Management Services Help You Get Higher Quality Tenants Property management services will be able to recruit only the best tenants for your rental property. This is because they understand the market, the importance of background checks and tenant screening processes, and how to advertise available properties to individuals who are likely to be high-paying quality renters. As a property owner with no expertise in marketing your property, there is a big possibility you will promote on the incorrect platforms and maybe attract the wrong tenant pool. You may not even know how to properly screen for renters based on their ability to pay monthly rent, which may have serious consequences if your tenant stops paying their rent midway. Again, you can rely on property management services to handle these tasks. How Can PropertyAngel Help You With Property Management Services?Managing your rental property on your own may appear to be a fantastic option at first. However, you may not understand when you first set foot in the rental property industry how much work and money is required to effectively manage every part of your tenant's stay in your property. Not comprehending the time and financial commitment associated with maintaining rental properties might invite a lot of hassle.
You may believe that doing everything yourself and not hiring property management services maximizes your income. However, if you do not outsource your property management chores, you may be doing financial harm and making matters worse without even realizing it. Therefore, if you want to become a successful property owner, you should think about hiring property management services to assist you. At PropertyAngel, with our knowledge, skill, and expertise, we help you save you a lot of time and money, and they can make you more money without having to work as hard. |
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