Why You Should Invest in Vacation Homes 

There are many reasons why vacation homes are one of the best real estate investment options. Here are a few:                                                                                           

High potential for rental income

 Vacation homes are typically rented out to travellers and tourists looking for short-term accommodation. Therefore, vacation homes have a high potential for rental income, especially during peak holiday seasons. In India, several popular vacation destinations, like Goa, Kerala, Himachal Pradesh, etc., attract many tourists throughout the year. By making the best real estate investments in one of these destinations, you can generate a steady stream of rental income.   

Capital appreciation

Like any other best property investment, vacation homes have the potential to appreciate over time. In India, the demand for vacation homes is rising due to the increasing popularity of domestic travel and the growth of the tourism industry. Therefore, the value of your vacation home is likely to increase over time, providing you with a good return on investment.               

Tax benefits

​ Investing in a vacation home in India can provide several tax benefits. For example, if you purchase a vacation home as your second home, you can deduct the interest paid on the home loan used to purchase the property. You can also claim deductions for property taxes, maintenance costs, and other related expenses on the best real estate investments.

Diversification of investment portfolio

 Investing in a vacation home can help you diversify your investment portfolio. The best real estate investments are often considered a stable and secure investment option, and by investing in a vacation home, you can spread your investment risk across different asset classes. 

Factors to Consider When Choosing a Vacation Home for Investment  

While investing in a vacation home is one of the best real estate investments, there are several factors to consider before making a decision. Here are some of them: 

Location 

​The location of your vacation home is one of the most crucial factors. A popular vacation destination that attracts a large number of tourists throughout the year would make the best real estate investment. Additionally, the property should be easily accessible from the nearest airport or railway station.

Accessibility

The vacation home should be easily accessible from the nearest city or town. Therefore, the property should have easy access to public transportation and other amenities like hospitals, restaurants, shopping centres, etc.    

Legal Considerations

Before investing in a vacation home, it's important to make sure that the property is legally compliant and has all the necessary approvals and permits. Additionally, you should be aware of the local laws and regulations related to property ownership and rental income. 

Popular Locations for Vacation Home Investments in India  

Many popular vacation destinations in India attract tourists from all over the world. Here are some of the most lucrative places in India for vacation homes:   

Hill stations

Some popular hill stations in India include Shimla, Manali, Darjeeling, Ooty, etc. These locations offer cool and pleasant weather, breathtaking views, and a perfect peaceful environment for a relaxing vacation. Also, many of these hill stations offer adventure activities like trekking, skiing, and paragliding, which attract adventure enthusiasts throughout the year.

Beach destinations

Beach destinations in India include Goa, Kerala, and the Andaman and Nicobar Islands, etc. These locations offer warm weather, sandy beaches, and a range of water sports activities like scuba diving, snorkelling, and surfing.

Heritage cities

These cities attract tourists interested in exploring the country's rich history and architecture. Jaipur, Agra, and Varanasi are some of the famous heritage cities in India.

Other emerging vacation home markets

Besides popular vacation destinations, many emerging vacation home markets in India offer good investment opportunities. For example, cities like Pune, Bangalore, and Chennai are seeing a growing demand for vacation homes due to the increasing number of business travellers and expats.

Risks and Challenges of Investing in Vacation Homes in India 

There are several risks and challenges to investing in vacation homes. Here are some of them:

Seasonal fluctuations

Since demand for vacation homes is often seasonal, rental income can vary depending on the time of year. For example, beach destinations may see a surge in demand during the summer months, but the demand may drop during the monsoon season.

Property management and maintenance 

Maintaining a vacation home can be challenging, especially if you live far away from the property. However, hiring a property management company can make that job easy for you.  

Competition from other vacation rental properties

Vacation homes are often in direct competition with other vacation rental properties in the same location. Therefore, you must offer competitive pricing and high-quality amenities to attract tenants.  

Final Words

Vacation homes can be one of the best real estate investments, especially in India, where the demand for vacation homes is on the rise. Considering the above factors, you can make a wise decision and enjoy the benefits of owning a vacation home in India.  

About PropertyAngel

PropertyAngel is an award-winning second landlord platform, headquartered in Bangalore with an AUM of Rs. 1500 crores. Incorporated in 2014, PropertyAngel's tech-enabled real estate asset management services for individual apartments, villas and houses, have won awards from Zoho, grants from Facebook, and been recognized several times as among the top 10 property management companies in India.
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Sale Deed or Conveyance Deed

The sale deed or conveyance deed serves as proof of property ownership. It is a document signed between the buyer and the seller during the property sale transaction. The sale deed outlines the terms and conditions of the sale, which include the purchase price, payment terms, and other relevant details. It also describes the property, including its boundaries and location.

It's mandatory to register the Sale Deed in the Sub Registrar office in whose jurisdiction the property is located within 4 months from the date of execution. If not, you need to pay a penalty, or it stands invalid.     

RTC Extracts

The RTC or Record of Rights, Tenancy and Crops is a document issued by the Village Accountant in India. It contains important details about a particular survey or sub-survey number of land. This includes information on the size of the land, any non-arable land within it, the current and previous owners of the land, their holdings and tenants. 

The RTC also provides information about the kind of soil and crops grown, any mortgages or charges made on the property, and its status as either Inam land or not. It also includes details about any conversion orders for changing the property from agricultural to non-agricultural use and references to inheritance and mutation certificates in case of any change in ownership.

Khata Certificate and Extracts

A Khata is an account of a person who owns property in a city, and it comes in two forms: Khata Certificate and Khata Extract. It confirms that a property is constructed as per the approved plan and is recorded by the local municipal committee. 

A Khata Certificate is necessary for registering or transferring any property and can be obtained from the Assistant Revenue Officer of the area after paying taxes. It is required for getting water and electricity connections, trade and building licenses. 
The Khata Extract contains property details like its size, use, and annual value and is necessary for getting a trade license or purchasing a property. 

Mutation Register Extracts

A Mutation Extract is a document issued by the Village Accountant or the Tahsildar. It contains information extracted from the mutation register or inheritance certificate, including details about the previous and present property owners, how the property was acquired, the total size of the property, and an order stating that the Khata of the property can be transferred to the name of the present owner.    

Power of Attorney

A POA is a legal instrument in which one person delegates authority to another person to act as his/her legal representative and make lawful binding financial and legal decisions on his/her behalf, including the sale or purchase of property on the buyer's or seller's behalf.  

No Objection Certificate

Builders are required to obtain a No Objection Certificate (NOC) from all the key government departments before starting the construction of a building. The number of departments from which an NOC is required can vary by state, but it can be as many as 19 departments, ranging from Pollution Control Board to Fire and Safety. Therefore, obtaining NOCs from all the necessary departments is important.   

Allotment Letter from the Builder/Housing Board/Co-Operative Society

When an individual takes a bank loan to purchase a property, the builder or housing society provides an Allotment Letter to the buyer, which contains the details of the property being sold and bought, as well as the amount of money that the buyer has already paid to the builder or housing society, so that the bank can finance the remaining amount. The Allotment Letter also provides details of the project and the property being purchased.

The Allotment Letter is issued on the Letterhead of the concerned authority. Only the first owner receives the Allotment Letter from the builder, but subsequent owners can request a copy of the original allotment letter from the previous owner.   

Sale Agreement between Builder and 1st Owner

The Sale Agreement is a very important property document that outlines the responsibility of the builder to construct the property according to approved plans and specifications. It includes details such as the tentative possession date, the price to be paid by the purchaser, and the payment intervals based on the construction stage. The document also specifies the nature of the association, common areas and facilities, undivided interest in the common areas, and the intended use of the apartment.   

Construction Agreement between Builder & 1st Owner

The construction agreement outlines the terms and conditions of the construction work for an apartment or property. It involves the transfer or sale of goods related to the execution of the work. The agreement specifies the work to be done, the materials to be used, the cost of the project, and the time frame for completion. Once the construction is completed, the ownership of the finished work and the materials used in it are transferred to the person for whom the work has been done.   

Copy of Possession Letter from the Builder

The letter ensures that possession of the building is delivered to the purchaser on the effective date.

Occupancy Certificate

The occupancy certificate is issued to a builder after the completion of a construction project. It is granted after an inspection to confirm if the building has been constructed as per the plan approved by the local authority. This certificate is an important document that a builder must obtain before allowing people to take possession of the property. 
 

About PropertyAngel

PropertyAngel is an award-winning second landlord platform, headquartered in Bangalore with an AUM of Rs. 1500 crores. Incorporated in 2014, PropertyAngel's tech-enabled real estate asset management services for individual apartments, villas and houses, have won awards from Zoho, grants from Facebook, and been recognized several times as among the top 10 property management companies in India.
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Tenant disputes are an inevitable part of property management and can be time-consuming and stressful. Whether it's a noise complaint or a disagreement over something, tenant disputes can quickly escalate and cause significant headaches. Fortunately, a property management company navigates these disputes and minimises the impact on their client's business. In this post, we'll explore how property management companies handle tenant disputes.   ​

Steps Property Management Companies Take To Resolve Tenant Conflicts

First off, it's important to understand that property management companies are responsible for managing the rental property on behalf of the landlord. Thus, they have the authority to handle any issues between tenants.

The property management company usually has a set of policies and procedures in place to handle disputes between tenants. These policies are designed to be fair and impartial, with the goal of resolving the issue as quickly as possible. When a dispute arises, the property management company will typically take the following steps:

Listen to Both Parties

​The first step is to listen to both parties involved in the dispute. Each tenant will have their version of events, and it's important to give them both an opportunity to speak. The property management company will take notes on what each person says and ask follow-up questions to understand the situation clearly.   

Gather Evidence

Once the property management company has listened to both parties, they'll start gathering evidence. This may include reviewing lease agreements, talking to witnesses, checking security camera footage, etc. Gathering evidence is crucial to establish the facts of the case so the company can make an informed decision. 

Evaluate the Situation

After gathering evidence, the property management company will evaluate the situation. They'll take into account each tenant's story, the evidence gathered, and any applicable laws or regulations. This evaluation will help the property management company decide what action needs to be taken. 

Take Action

Finally, the property management company will take action. This could mean talking to one or both tenants about the issue, issuing a warning, or taking more drastic measures, like eviction. The action taken will depend on the severity of the dispute.   

It's worth noting that the property management company must follow state laws when resolving disputes between tenants. For example, they can't discriminate against a tenant based on their race, religion, or gender. They also can't retaliate against a tenant for complaining about an issue or exercising their legal rights. 

In some cases, the dispute may be beyond the scope of the property management company. For example, if the dispute involves criminal activity, the police need to be involved. In these cases, the property management company will work with the police to resolve the issue.  

Preventing Disputes Between Tenants

Of course, the best way to handle disputes between tenants is to prevent them from happening in the first place. Therefore, property management companies take a proactive approach to prevent disputes by:

Clear Communication

Clear communication is key to preventing disputes between tenants. The best property management companies in Bangalore are transparent about the rules and expectations of the property. They also encourage tenants to communicate any issues or concerns they may have.  

Regular Inspections

Regular property inspections help identify potential issues before they become major problems. That's why property management companies in Bangalore inspect the property on a regular basis to make sure that everything is in working order.

Encouraging Respectful Behaviour

Property management companies encourage respectful behaviour among tenants. This includes setting expectations for noise levels, cleanliness, and other behaviours that could cause conflict between tenants. 

Final Words

Disputes between tenants are a common issue in rental properties. That's why property management companies play a crucial role in managing these disputes. Their proactive approach prevents disputes and, if something happens, effectively resolves disputes between tenants in order to create a pleasant living environment for all tenants.

About PropertyAngel

PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.

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