​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


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