Developers are now ready to find the right tenant for your flat, and deposit the rent into your account
The first bother of an investor is the management of the unit purchased, be it finding a tenant or maintaining an unoccupied residence. This issue can significantly impact investor demand, dipping sales in an increasingly tight real estate market. Considering the current trend of post-sale property management, it can be seen that developers are addressing this issue.
As part of marketing strategies, high-end developments offer to handle the rental segment of the apartment or villa, where end-to-end solutions of finding a tenant, completing the documentation and due diligence, taking over the unit maintenance during the rental period as well as post the unit falling vacant, are provided. These facilities are handled by a separate department dedicated totally for this function, assuring the potential buyer of hassle-free management of the purchased unit.
Jitendra Jagadev, Co-Founder & Managing Director, NestAway, a Bangalore-based project, says “The objective is to provide a steady source of income to home owners besides offering quality maintenance.” The service offer includes a rental default guarantee where the owner is assured of timely rent even in case of a default. Jagadev claimed that the rental fixed by their group would be 1.3 times the average rental prevailing in the selected location, thus offering a significant return to the home owner.
Big help for NRIs
Om Ahuja, CEO-Residential, Brigade Group, says, “Investors such as NRIs are totally dependent on friends and relatives for renting their units and maintaining them during the rental period and when the premises is vacated. Offering this service eases the burden besides giving them the confidence and assurance of the purchased units being taken care of.” He added that, with markets fast evolving, there is likely to be more organised players emerging in this service segment.
Stating that every real estate development involves four aspects — the sale of units, maintenance, rentals, and resale —K.R. Raghavan, President-Sales, Ozone Group, says that these segments need to be addressed effectively to ensure effective marketing. “Most investors are either NRIs or those may not be residing in the city. And even if they do, they may prefer to have their properties managed, be it rental or maintenance. Offering such services can make purchases more attractive.” According to him, the Ozone Group had a scheme that assured a two-year rental at the time of possession of the unit. “Now we have a team that will find the right tenants, handle the documentation and the rental deposits. Besides the maintenance services for the rented units, we offer similar services for units that are not occupied, relieving the buyer the hassle of maintaining an unused unit.”
Given the potential marketing opportunities and impact on demand such services open up, this would emerge as a leading marketing strategy for developments in the coming years, he adds. “It is a win-win situation for both as it offers an assured, hassle-free income stream for the buyer while providing the seller an avenue for service and revenue even after sale.” Snehal Mantri, Director-Marketing and HR, Mantri Developers, says, “We have been offering property management services to our NRI customers for the last 15 years, which includes rentals and resale. This facility is offered to residents in India too on request. Here, not only renting of the units is taken care of, but also the property management, the documentation process, and on the lease getting terminated, a new tenant is found.”
If such services become the prevailing trend in future, investing in real estate may once again become a very attractive, yet hassle-free proposition, inducing a greater fund movement into its domain in the coming years.
It is a win-win situation for both as it offers an assured income for the buyer while providing the seller an avenue for revenue even after sale.
Source The Hindu Property Plus