Time To Think About Property Management Services
The second wave yet again shook things up in India causing people to rush back to their own states and cities due to fear of being stuck in a different city during a lockdown.
The second wave has shocked people with its severity and more people have become cautious about getting back out.
As a result of the severity – India saw many international bans. This directly impacting NRIs who may have planned to visit India which was missed last year as well.
If you are an NRI who has already invested in property in India and are not sure how to keep up with the turbulence of covid-19 – it’s time to start looking for property management services in India.
Over the course of the year since the pandemic hit, real estate investments have needed more attention than ever to keep up with the changing demands and circumstances.
Here are some the things you would have to consider if you have leased or rented your property out and are stuck abroad:
The government has made no announcements regarding rent reductions – however, due to a major set-back in the economy many tenants are making requests for rent reduction in major metropolitan cities like Bengaluru, where the rent in prime locations can be a hefty bill to pay with pay cuts and salary reductions.
These conversations are often difficult to have and can sometimes go back and forth. As a property owner, you will need someone on-ground having negotiation discussions with the tenant to meet halfway – so both you and the tenant are in a comfortable place with the rent.
You don’t want to be losing tenants as that will result in a vacant property – but you also don’t want to be at a total loss.
Property management services in India ,like Proptech, will assign a dedicated property manager who will be able to take all necessary safety precautions to visit your property in escalated cases, or close negotiations over a call. Which you may not have the time to do, being in a different time zone.
Furthermore, as there are no standard rent reduction mandates or guidelines, each property has to be taken on a scenario basis given its condition and locality. A good property management service in India will ensure each scenario is attended to individually.
Rent Deferment vs Discount
While the real estate sector enjoyed a certain level of standardization with rent and investment expectations – it’s no longer the case.
Different tenants are proposing/making a different request. Each request has to be taken into consideration there cannot be a ‘one size fits all’ solution in this case.
Property management services in India should ideally have a property manager who will bring forward a possible and feasible plan of actions that you can decide to make the best out of your investment on a stormy day.
As a property owner – you need to consider property as an essential service.
Though you cannot control if a tenant wishes to leave – you need to have a plan of action in place to ensure reduced vacancy time of property.
Being available for queries and concerns at any given point has become essential now.
While you may have designated a close relative to look after your property or you would come every year to check in – tenants now need to communicate with property owners on their occupancy plans.
A tenant may need to communicate certain emergencies like vacating the place or maybe a neighbourhood covid break out to you as the owner or other concerns like damages that have gotten worse as they haven’t been fixed yet.
The easier it is for a tenant to reach out to the property owner – the sooner you will know of any plans the tenant might have on leaving the space. When a tenant leaves, you also need to make sure you understand the following:
- Why are they leaving?
- Can you retain them by lower rent or the deposit?
- Is there a clause of escalation in the agreement they are anxious about?
- A property management firm will take care of all your communications channels and keep you updated by an app, which is accessible at the tip of your fingers.
With uncertain times come uncertain timelines. With a certain amount of relaxation in some states and cities, many cities plan to practice strict lockdown rules for another month to come.
The property management services in India you pick should ideally have a property manager who acts as your eyes and ears on the ground.
At Proptech, if a property manager cannot schedule a routine inspection visit, they will at least reach out and follow up with tenants on any maintenance issues that may have come up in lockdown periods.
Small damages that happen to a property may seem trivial, but in the long run may cost you a fair amount to make the property good as new.
While the real estate sector did see some light of day, the second wave forced people to evacuate from the metropolis to avoid the high cost of living. Leaving many properties vacant.
However, cities like Hyderabad and Bengaluru did start welcoming people back once the dust settled after the first wave, so, the same can be expected after the second wave settles down.
When it does, you as a property owner need to ensure your property is listed on the right platforms and at a fair price based on current market trends.
As a property management company, our goal is to ensure your property is listed on various platforms and all leads are followed up by your property manager.
Services Our Property Management Company Has to Offer
Now that you read about how a property manager can benefit you in times like this, let’s talk about the other property management services that get covered when you hire a property manager to manage your property.
Market Trends And Evaluation
Real estate is viewed as the easy long term investment plan but covid-19 has shifted that narrative and made it crucial that property owners keep an eye on the market and changing trends.
Metropolises in India have been impacted by the pandemic with tenants leaving and rushing back based on the situation in the cities.
A property management company has a team of experts who carry out exhaustive market analysis of various locations to keep up with the changing market value and trends.
Based on where your property is located – even before you sign-up – we give you a clear insight into the best ways you can fully monetize the location of your property.
Upkeep And Maintenance
Many NRIs tend to leave the responsibility of their property in the hands of a close relative. While this may have worked in the past, a relative may no longer have the time to manage your property and may not be able to visit the property if it is in a completely different part of the city vs where they live due to restrictions.
Proptech has a team of professionals and dedicated property managers who will take all necessary safety precautions to visit your property in periodic duration to ensure the upkeep and maintenance of the property.
Whether your property is already occupied or vacant – the upkeep and maintenance has to be maintained at all times.
We start with the basic inspection of the property to get an understanding of its value in that locality and how we can best help you get a good ROI for that property.
Following this, based on whether it’s a new or older property that was already previously occupied – we follow a protocol of deep cleaning and identify any necessary repair and maintenance required.
By keeping your property damage free and by looking after its maintenance actively, we ensure that the market value of the property is maintained.
Marketing And Advertising
A vacant property is a property that is not giving you the ROI you may have been seeking on that investment.
There are several tools and platforms that you have at the tip of your fingers to advertise and list your property – but all need a large portion of your time and attention.
You have to ensure the property is listed on the right platforms and you do not let any lead queries slip through the cracks – especially in times like these!
At PropTech Solutions we have an in-house marketing team that evaluates the best platforms to list your property, keeps a track of incoming queries about the property and keeps your property at the top of listings.
We have managers dedicated to your property who promptly show leads to the property and when a lead converts, we run background checks and verify occupants to ensure that you get reliable tenants.
Any request, updates or hassle faced by the tenant – our property managers handle it for you.
Whether it’s routine inspections or being there for urgent discussions, we make sure we are available to speak to the tenant and update the property owner of any pressing issues.
Documentation doesn’t only mean the agreement for the house. There are several other documents you need to be aware of when considering property as an investment.
Some example of essential documents include:
- Sales Deed: Establishes ownership of title of the property. This has to be registered in the Sub-registrar’s office of the area where the property is located.
- Khata: This is important for the registration of a new property. This document is proof that the property has entry in the local municipal records and the construction has been done according to an approved plan.
- Occupancy Certificate: They are the government approvals for electricity supply, water supply, etc. the builder needs to have before he can start construction. These approvals are mandatory to ensure that all the required government approvals are in place.
- Completion Certificate: A completion certificate from municipal authorities is required to show whether the building complies with the rules relating to permissible building heights, distance from the road, etc. It ensures that the building is constructed according to the approved plan.
- No due Certificate: A no due certificate from the Apartments Owners Association is required to ensure that the owner has cleared all his dues. This is also required in its original form.
- NOC: A no due certificate from the Apartments Owners Association is required to ensure that the owner has cleared all his dues. This is also required in its original form.
- Property Tax Receipts: The local municipal authorities assess the value of every property and accordingly levy a proportionate tax on the same, which would be payable on an annual or semi-annual basis. It’s important to have the tax receipts to ensure there are no pending dues.
If you already have property, it’s imperative to make sure all documents are updated based on the requirements (if any).
Going back to the most basic documentation that you will share with a tenant – the agreement.
Due to a slow-down in the economy, many tenants are either reaching out to homeowners or an agreement has reached its date for renewal for an extension in the price escalation term.
While in normal circumstances a yearly price escalation is applicable – now all requests have to be assessed individually.
As mentioned earlier on – a property management company appoints a dedicated property manager who handles all things related to your property and will carry out the negotiation discussions for the agreement likewise.
A tenant more than ever may have several updates or queries for the property owner – residential or commercial.
It’s important to be available to take these calls to remain updated on your tenant’s plan. By being readily available to hear the tenant’s query, you may be able to prevent the loss of a tenant by making them an offer that meets them halfway.
At Proptech, we have all the services you will need as an NRI to help you get the best possible returns on your property even in these uncertain times.
A property manager takes away the burden of property management from your shoulders and lets you enjoy the benefits of being a property owner and investor.
Go ahead – reach out to us and end your search for property management services in India today!