​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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Property Management Services are only for those owners who don’t reside in the same city where their property is located….what ??? is this true ?? …. Let me bust this Myth for you !
 
A lot of effort goes into managing a property and you don't need any excuse to avail the services of a Property Management Company.
 
Let me tell you how a Property Management Company can benefit you as a local owner
 
Marketing your property
Gone are the days when To-let boards attracted eyeballs.
 
We live in a new age where everything happens on the World Wide Web, which means someone could be looking for a house in Bangalore sitting right across the globe.
 
In such circumstances, marketing your property to get suitable tenants could be a task.
 
Why put the effort to get a Masters Degree in marketing for a single property when you can reach out to Property Managers to do it for you ?
 
Expertise of Property Managers enables them to judge the right place to attract the highest potential tenants. They can also market your property in multiple platforms to boost your tenant leads
 
Managing calls
Imagine receiving multiple calls from potential tenants -you won't want to miss them ...but you definitely do get tired of reciting the same details again and again to each caller.
 
Property Management companies reduce this burden for you. They attend unlimited calls and shortlist tenants as per your specifications.
 
They also verify your tenants to ensure that your property is in safe hands.
 
Rent Analysis
We sometimes might set the rent of our property too high  or Sometimes we might set the rents too low ….In both cases we lose out, either our property is mostly vacant as in the 1st case or we are constantly under paid as in the 2nd case.
 
Rent varies just like the stock market. Multiple conditions affect them, such as: location , access to amenities, connectivity, development in the surrounding are and not the forget our economic conditions
 
Property Managers have the expertise to arrive at the most optimum rent to maximize on our income and also ensure that your property is tenanted.
 
Managing tenants
Most of the property owners are busy with a day job. Coordinating with potential tenants for inspection and scheduling a convenient time that suits both is a hassle.
 
Property Management companies have personnel who can take tenants for inspections.
 
We don't need to travel from corner to corner, taking an excuse from work to show tenants the house for inspection.
 
Maintenance of Property
As a homeowner we might face maintenance issues especially when the property is vacant.
 
Be it pest or seepage - it’s the responsibility of owners to maintain the property in a livable condition.
 
This task can be handed over to Property Management companies who can get all your maintenance work done and ensure your property is always in its best conditions.
 
They find the best vendors and supervise the work, keeping you tension free.
 
Property Inspections
A property owner is not tension free once the property is rented out, we must also ensure that the property is inspected on regular intervals to ensure that the property is in good condition.
 
Property Management companies schedule regular inspections so you can take a back seat and enjoy your rent and take the inspection burden off your shoulders.
 
Rent Collection
You are lucky if you have a tenant that pays you on time !
 
But most of us are blessed with kind tenants who need a nudge to pay their monthly rent.
 
Keeping a track of these payments could be a bit annoying and at some point it might put you in an embarrassing situation.
 
Don’t want to nag your tenant ? … simply pass on the duty to the Property Management Company.
 
They take up the responsibility to collect your rent and ensure it's in your bank, Ready for you to spend it !
 
 
We all should realise that a property is always a burden when it is unoccupied. The ‘n’ number of maintenance issues and the safety of the property is an ongoing issue.
 
In the current market many homeowners have bought properties for investment on bank loans and the pressure of EMI can only be mitigated if the property is tenanted.
 
Every owner can only enjoy the benefits of their property when it generates some income.
 
When the need of the hour is to wisely manage your investments, then who best can ensure maximum return on your investment than the experts in the area of properties -- Property Management Companies.
 
Now all of you might be thinking if the benefits outweigh the costs ….
 
It is here that we should realise that in performing all the above duties as a property owner we shell out cash more often than we realise - small amounts over a period of time may go unnoticed but they sure do impact our pockets.
 
As the old saying goes - Penny wise, Pound foolish - it’s better to acknowledge an expense than have no control and have unnoticed expenses.
 
The benefits definitely weigh more than the costs and it's best to take aid from a professional to manage your property.
 
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
 
Few service which may please you as an owner of your property:

1. Marketing your property in various online/ offline platforms
2. Transparency in our transactions
3. Freedom for you to choose your tenants after verification.
4. 6 month inspections to ensure that your property is in good hands.
5. Inventory at move in and exit → to ensure your belongings at the property are safe
6. Monthly rent collection & deposit, and continued follow up for bounced cheques/non-receipts, etc until collected
7. Owner privacy, where we do not share your number with anyone, including the tenants, without your consent.

 
Our goal is to maximize your rental income and to minimize your stresses.
 
To know more about us please visit our website: https://www.propertyangel.in/
Reach out to us on: 91-80-47095974 / 91-7406484455 OR
​hello@propertyangel.in

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.
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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.

​Rupee Takes A Hit
In recent months, the rupee has been witnessing a fall against the dollar due to various reasons. This has helped non-resident Indians scout for properties in their homeland to settle down, and use as an investment. The past few years had been quite sedentary for the residential real estate market in India. However, all of that will soon change due to NRIs from around the world, considering India as a haven for themselves. Lack of transparency, fear of corruption, and safety issues were holding NRIs back in the past when it came to Indian real-estate. Studies show that those trends are now changing.
 
RERA Improves Credibility
The enactment and implementation of the RERA have helped the real-estate industry better its reputation. The RERA ushered in a new era of transparency, credibility, assurance, and consolidation. All of these have helped the market look more lucrative to NRIs from around the world. The weakening of the rupee has turned India into a substantial market for overseas real-estate investments. Studies show that over 30 % of NRIs want to invest in properties, and that percentage is increasing year-on-year.
 
Why NRIs Should Consider Real-Estate as an Investment​

• Price correction in the last few years allows NRIs to leverage their power of additional income as a result of currency exchange
• Momentum regarding the popularity of properties in Tier-2 and Tier-3 cities are picking up.
• NRIs no longer have to look for highly expensive properties in just Tier-1 cities.
• The rate of appreciation for such properties has increased as a result of fast infrastructural development.
• Such investments give good returns, as they can be rented out as well. The rise of the property management industry in India, gives them further assurance that their assets will be safe and secure.
• Rise in communal issues, and the fall in the economy in several countries are pushing NRIs to return home.
• The fall in rupee prices and a sluggish market ensures NRIs better prices when they buy properties in India right now.
• The COVID-19 has laid bare the fallacies and problems that several developed nationals have, leading Indians to want to return home in the long run.

RERA has brought in a lot of accountability and credibility into the Indian real estate sector so that NRIs can be more assured.

​The COVID-19 Impact
The COVID-19 has led to the disruption of life in almost every country in the world. It has also led to the rupee falling and the rise in the form of the Indian real estate market. Due to the COVID-19, NRIs are coming into the Indian Real Estate scene due to its emergence as a risk-averse investment option. This global pandemic has renewed interest in residential properties in Bangalore, Hyderabad, Pune, Noida, and Gurugram.
 
Furthermore, due to the chance for good capital appreciation, NRIs are also buying commercial spaces now. The COVID-19 has also allowed NRIs to negotiate good deals and even land ready-to-move-in propositions. If that wasn’t enough, banks are low handing out home loans for as low as 7.15% interest rates. Real-estate experts also believe that the COVID-inspired lockdown has led to the rise in the popularity of technology-driven home buying in India. Virtual real-estate sites are now successfully doing virtual tours, closing deals, and negotiating terms like never before. This added with the fact that most States are trying to bring in e-registration of property documents will make it possible for NRIs to buy their dream homes at least hassle.
 
Why PropertyAngel
However, while buying homes has become easier than ever before, maintaining them is of the utmost importance. NRIs tend to face difficulty in the maintenance and upkeep of their property, as they live far away. However, the presence and collaboration with good Property Management Companies will change all that. Clients will no longer have to worry about issues like;

1. Illegal Occupancy and Squatting
2. Tenant Search
3. Tenant Screening
4. Tenant management
5. Paperwork such as rent agreement
6. Utility Bill Payment
7. Compliance for Taxes and other legal issues
8. Property inspection
9. Repair, Maintenance, and Upkeep
10. Renovation Issues
11. Leasing and Registration of Property
12. Periodical Reports
13. Return on Investment

 
People who have large real-estate portfolios find it challenging to manage all those properties when they live so far away. That is where PropertyAngel comes into the picture. These companies leverage their knowledge of the industry and local areas to maintain and manage your property to ensure you get the highest returns. It is difficult to handle all the compliances, paperwork, legal issues, and tenant search when NRIs come home for a month in a year. Therefore, PropertyAngel takes that burden off NRIs by doing it most efficiently and effectively.
 
These PropertyAngel professionals will take care of the property, resolve tenant issues, and supervise the property. This ensures that your property investment remains secure and generates the required income for you. Constant supervision also eliminates the risk of encroachment and illegal occupancy, both of which are serious threats now. So, join hands with us to bypass the cumbersome task of managing your property and ensure you receive the return on investment you always needed! We simplify the tiresome process of managing your property to focus on the more important things in life.
 
 Authored by: Dhivya Naresh

​​From the very start, the year 2020 has brought with it one of the most challenging issues the world has faced in recent years. For the past few months, the world has been facing numerous adverse effects of the coronavirus pandemic, which has had a devastating effect on the Indian economy as well. India has been under a nationwide lockdown since March 25th, 2020. Now, as India moves to its fifth stage of the lockdown, the number of people infected by the virus continues to rise at a rate higher than ever before. As of June 4th 2020, there are over 220,000 COVID-19 cases and over 6300 death in India (World O Meters). The regular lives of the majority of Indians have been completely disrupted.
 
The population demographic of the country that has the most significant influence on these changing trends are the millennials and youngsters. This population includes students and young working professionals. They not only comprise one of the most prominent sections of the population, but they are also the trendsetters of the nation. They influence the way we eat, shop, commute, and live. Most of these people leave their homes and go to cities for their work or education. This trend had given a rise to the “Co-living” industry, which largely comprise of dedicated apartment communities for single professionals, with are fully serviced with housekeeping, social infrastructure and is largely a hospitality solution. However the covid-19 pandemic has created havoc in this space, and many of these communities are now empty.
 
Here are a few key factors that are contributing to this:  
 

• Work from Home – Many Corporates have offered indefinite work from home options to their employees, as many are yet to figure out how to manage the safety precautions and logistical issues in the office premises when the employees return. As remote work becomes the norm, many of the young professional migrants, have returned to their hometowns.

 

• Corporate Downsizing – With the economy on the verge of collapse, many companies have shut down and corporates have been downsizing. The youngsters with nowhere else to go, and a bleak future ahead, have been returning to their homes, in anticipation of better times.

 

• Safety Hazards – Today, tenants value clean, well-maintained, and safe living spaces more than ever. These young professionals and their families are also worried about them staying in a large community in such close proximity with a larger crowd and so much shared infrastructure. Many of these co-living solutions are yet to upgrade their facilities to adhere to the required sanitation and social distancing norms.

 

• Financial woes – With so many of the inhabitants vacating the premises, many of these co-living solutions are no longer able to afford rent to their landlords. Several have shut shop and several others are battling financial nightmares.

 
Industry experts believe that once these young professionals start returning to their work cities, they will not return to these PG buildings and co-living communities, and instead will move to more organized apartment complexes, with independent units which they can share with their own friends and family, such as those offered by PropertyAngel, Nestaway and other such property management providers.
 
In the times of such crisis, flexibility is the key. PropertyAngel offers the perfect solution for people who want to live in clean, safe and well-maintained homes with their friends and colleagues. We believe that post the coronavirus crisis, a new trend will emerge in the real estate market, and we are here to make it easier for you to transition into this trend smoothly. 

​Most of the homebuyers in India belong to the working class category. The pandemic and the possibility of a recession has left many potential buyers unsure of their jobs. This is bound to negatively affect their property buying decisions. Many may not be able to decide to take the responsibility of an added liability and the burden of EMIs after buying a new property with such high levels of uncertainty around their livelihood.
 
In the meantime, we can expect to see some spike in developers opting for launches digitally. This will allow customers to book site visits online where they will be able to choose specific time slots to avoid crowding and maintain the necessary social distancing. The government advisory to avoid any kind of social gathering is certainly going to impact the number of site visits and thus overall housing sales as well.
 
However, there is a silver lining for rental property owners in this entire situation. This is especially true in major metropolitan cities like Bengaluru and Mumbai where PropertyAngel primarily operates. 

​THE SILVER LINING FOR RENTAL PROPERTY OWNERS
 
The rental apartment industry is now preparing to deal with tenants who may lose their jobs and may be unable to make the current and coming month’s rent. A large number of tenants have already asked for forbearance in April and May, and more will in June. Landlords will seek to emphasize retention, which will mean giving tenants some leniency in the near term. There will be downward pressure on effective rents in the next few months, and property owners will be asking their lenders for forbearance as well.
 
Although the rental apartment industry is now dealing with tenants who have lost their jobs and may be unable to make the coming month’s rent, the long-term outlook for rentals is still very bright, however, in light of demographic shifts that are still unfolding. This is especially evident because of the aforementioned points. Given the fact that the potential buyers have no choice postponed their purchasing decisions; rental property owners will not see a decrease in the number of tenants in the foreseeable future. In fact, there is a good chance that rental property owners will see an increase in the number of tenants. One of the main reasons for this is that the people that have bought a property still do not have the possession, and probably will not be receiving it any time soon. One of the major reasons for this is because of the mass relocation of construction labourers in the past two months back to their villages and homes.  Project completion has become a problematic endeavour and seems impossible at the moment.
 
The single-family-built-for-rent business might be a long-term beneficiary as well as we may possibly see a shift toward larger units that better accommodate working from home getting rented by families allowing more space for a home office or office nook. This is especially true for families that have members that work in the IT industry in cities like Bangalore, Mumbai, Pune, etc. List your property at PropertyAngel to help you choose the tenant you want to rent the property to.

​CONCLUSION
 
With the number of enquiries slowing down, share market being impacted and generally slow economy due to the global pandemic, a massive impact across all the housing segments in the real estate industry is inevitable. The outcome of this pandemic on the real estate industry, while loosely predictable, is still largely very uncertain. While the world is yet to know the outcome of the pandemic and how well the country would emerge from the current situation; taking care of your rental properties with PropertyAngel is never a bad idea. List your property on PropertyAngel to find the most suitable tenant.