As an NRI you immediately have one obvious hurdle when it comes to investing in property – you are in one city/country and your property is often very far away from you.
This makes it hard for timely visits, staying updated about developments of that locality and market trends – this is the start of when you should consider investing in property management services.
When you live aboard, you are already trying to keep up with the life you lead and may not exactly have the time to follow up on issues with your property.
Say, you had rented out your property when you were in India and left it in the care of a close relative. There is a water leak in the house and the tenant is trying to call your relative who is unreachable and you are unavailable due to a time difference – what does your tenant do and what do you do about getting that water leak fixed asap?
These situations may sound simple, but will arise more often than not. A broken window, a water leak, changes in policy, unexpected requests from tenants etc all adds up. A relative may not have the bandwidth in trying times to satisfy all these concerns.
This is why you NEED property management services – so you have a property manager who will look after your property end to end.
Market Jargon Or Important Terms?
A property manager knows the market and all the Important real estate terms: it might sound silly but when it comes to any type of investment, be it putting your money into shares, mutual funds or real estate – knowing the terminology surrounding that investment is essential.
When it comes to real estate – it’s not as tech savvy as buying shares on the stock market where you can do it from the comfort of your home. An agent has to get physical paperwork done that has to be signed and stamped to be legally binding.
In the real estate market there are basic terms that one needs to understand, here are the terms below:
- Carpet Area
- Built-up Area
- Title Deed
- Stamp Duty
- Proof of funds
- Clear title
- Net Operating Income (NOI)
- Freehold Property
- Capital expenditure
A property manager will already have an understanding of the terms and also know why each one is important.
For example: if you are an NRI and you find a property in India that you really like and you want to ask the owner about the paperwork – where do you start?
You could ask: If I buy this property, when will I get the title deed”
– or –
“Can I see the title deed?”
The title deed is a legal deed or document that constitutes evidence of ownership of a particular property.
Property Managers Are Aware Of Important Rules And Regulations For NRIs
Being abroad and juggling daily life there and back home in India can be a difficult task. The real estate segment is so deeply influenced by the local authorities, it can become a challenge for an NRI to keep up with important rules and regulations that need to be followed.
By opting for property management services, you can rest assured that you will receive all the necessary updates to help you keep your property legally safe.
Real Estate Broker Or Property Manager?
When overseas, we sometimes hand over the responsibility of managing property to a close relative, that relative may hire a local real estate broker to get work done.
Whether your close relative is handling the property or the real estate broker – neither will have a full hands on team that will be spending dedicated time on your investment.
If you have bought property as a safe investment – as with any investment it needs to be looked after in order to give you the returns you want in the long run.
A property that is not looked after, for example its upkeep, tenant management and vacancy/occupancy, might not get the returns you are looking for.
A property management company has a property manager who is dedicated to looking after various aspects of your property end-to-end, aiming to get you the best possible ROI.
A Property Management Company Has Standard Operating Procedures
Why are standard operating procedures important? They are objective, goal oriented and predefined to obtain the best outcome.
At Proptech Solutions we have standard operating procedures that cover all bases. From analysing your property to tenant management – our services cover it all.
This also makes it easy for you to stay updated about the status of your property, you get timely updates via our app and emails and you are always kept informed on what’s happening with your property in India.
The pandemic as we know has presented the world with unexpected and unprecedented circumstances. Over the course of the year, since when India was first hit severely (March 2021), many homeowners have not had the privilege to return to india.
In such unexpected circumstances, many tenants wanted rent reductions, changes in agreements and wanted to leave the property without serving notice due to pay cuts and layoffs.
In times like these, it may be challenging to depend on a close relative or a real estate broker who functions by himself. A property management company is more hands on and is more equipped to respond accordingly to such scenarios.
At Proptech, our dedicated property managers act as your eyes and ears for all things related to your property and ensure you are constantly informed about any advancements.
Investing in Property in India
You have to understand the basics when it comes to investing in real estate and understand what kind of property you can and cannot invest in as an NRI.
Types of property can be divided very basically as follows:
#1 Residential Real Estate: An NRI can invest in residential properties such as apartments, condominiums, duplexes, quad-lexus, triple-deckers, high-value homes, multi-generational as well as vacation homes.
However, none of the above can be used for any sort of business purposes like setting up an office space.
#2 Commercial Real Estate: As an NRI you can invest in office spaces, sales areas, retail outlets as well as storehouses which all fall under the category of commercial property.
#3 Industrial Real Estate: Industrial real estate includes and is not limited to: manufacturing buildings as well as stockrooms and storehouses.
Services like manufacturing, production, engineering, research, industrialization, development and storage as well as distribution services all fall under this umbrella.
#4 Agricultural Land: Agricultural land in India can only be sold to a person who is a resident of India and not to a non-resident.
If you as an NRI have already invested in property in India and have been stuck wondering how to go about leasing or renting it out – it’s time for you to hire a property management service. Services provided by Proptech cover all the things you need to reduce vacancy time of your property.
However, if you are someone looking to invest in property and are waiting for the right time to invest – the right time is now! [A Silver Lining for NRIs Looking to Invest in Property During Covid]
If you are unsure on where to start looking for trustworthy property deals, you can reach out to us. Proptech has a large clientele and a database of verified sellers.
Understanding Legal Rights
Knowing legal rights for anyone in any sector is very important, as having a basic understanding can keep you out of trouble.
To begin with, as an NRI, you should be aware that all real estate dealings by NRIs are controlled by the Foreign Exchange Management Act (FEMA).
Under the FEMA Act, an NRI can only purchase/invest in residential or commercial properties. Any agricultural land including farmland or any kind of plantation property cannot be purchased by an NRI or person of Indian origin who is a non resident.
By being aware of this basic Act, you as a real estate investor will not be duped into investing in property that is listed as Agricultural land.
As an NRI, if you opt for a freelance broker we recommend checking if they have been verified by the Real Estate Regulatory Authority (RERA).
Though this is a very small part of managing your property, it all adds up to maximizing your profits on the investment in the long run.
Any company that provides property management services needs to make sure they help property owners in this area.
At Proptech, we help property owners understand their basic legal rights and guide them when required. The dedicated property managers are verified and you can trust them to manage your property end-to-end.
Illegal Possession Of Existing Property
Being overseas, you may not be able to visit your property as often as you like, especially now.
When a tenant or anyone in that locality gets to know a homeowner will not be dropping in for routine inspections – it often leads to illegal possession and gatecrashers.
Illegal possession doesn’t always mean a tenant imposing their occupancy – it could also mean the person in charge taking full control of the property related decisions without our knowledge.
This is why an NRI must fulfill paperwork and should assign a Power of Attorney legally. (Decoding Power of Attorney [Guide for NRI Property Owners])
Professional Advice and Property Management Services
As an NRI you essentially need 2 things: staying informed and full management.
At Proptech, we have standard operating procedures that cover the overall services you will need and also guide property owners on what they need to keep in mind when it comes to any legal changes, changes in regulations and updates in documents.
The aim of our property management services is to simplify the management of property for property owners so they can manage their life overseas and investments in India hassle free.
Whether you want to sell, buy or maintain your property – a property management company will help you get the best outcome for your investment.
At PropTech – we have all the services you need and a property manager to guide you through the necessary steps of property management and make your investment hassle-free