Supply of Rental Houses far exceeds the supply of Expats

As this Economic Times article, most correctly points out, most landlords in the city of Bangalore prefer Expats and/or MNCs as tenants. Their primary motivation resting on the premise that the expats and MNCs will not overstay and will maintain their property well. 


Unfortunately for the landlords, there aren't nearly enough Expats or MNCs looking for housing to fill up the absolutely oversupplied market in the city of Bangalore, and several other metros as well. Fortunately for them, however, the startup ecosystem has a solution! Many landlords these days are turning to property management companies.  

How do these companies help, you ask? Firstly, they standardize almost everything - the rental terms, the fittings and fixtures, the inventory checks and inspections, exit checks, so there is little room for negotiation. The tenants are very clear on what their responsibilities are, and in what condition the house is expected to be returned and when. Moreover, these firms do stringent background checks of every tenant placed. They normally also have a huge database of vendors and are able to get quality work done at reasonable rates. 

While the property management ecosystem is very well developed in the west, it is just about mushrooming in India. While property management solutions are very sought after by the NRI community, even local busy landlords are becoming more open to such alternate solutions.  

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