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Get the NRI property management services at finest price in India such as property buying/selling property, utility bills and statutory payments, encumbrance/ khata/ patta/ 7/12 certificates, property monitoring, tenant management and vacation inspection to you.

How Can a Real-Estate Agent Help to Manage, Buy, or Sell Property?

How Can a Real-Estate Agent Help to Manage, Buy, or Sell Property?

A real estate agent plays a significant role that proves exponential in managing properties for their owners.  This crucial role involves marketing, tenant screening, drafting lease agreements, and property maintenance. Doing these things is like a nightmare. Besides, you should be acknowledged about the legal matters, law, updates taking place in them, and expertise in managing a property. That’s why people, especially non-residents of India (NRIs), should consider hiring a property manager or consultant.

Here in this blog, you will discover how a real-estate agent can effectively guide you to manage your property.  It will also spotlight their responsibilities and contributions.

  • Domain Knowledge

Being domain experts and experienced, these agents have extensive market knowledge. They can easily understand the trend in the local real estate market. Understanding true values and rental fashion is like a walkover.  This knowledge helps property owners to come across the optimal rental price for their properties. It can also prove elemental in comparative market analysis, which guides these agents to assess similar properties in the area. With this information, recommending accurate rental rate that can maximize rental income for property owners.

  • Easy Marketing

Marketing the property is one of the primary tasks of these agents. They use various methods and employ different channels for providing buying and selling assistance to customers.  These channels can be online platforms like social media networks (Facebook, Instagram, YouTube, and LInkedIn). These professionals run advertising on these networks, which helps in creating a useful and valid property listings. Such listing are made more impactful by adding high-quality photographs, compelling descriptions, and necessary details to generate interest and engage intended buyers or sellers.

  • Tenant/ Buyers/Sellers Screening

This is another crucial aspect of property management, and real estate agents excel in this area. They work on standard and proven processes to verify and evaluate prospective tenants, buyers, and sellers. Actually, this kind of screening includes conducting background checks, verifying employment and income, and assessing creditworthiness. By performing rigorous screening, property managers ensure that owners find a reliable and responsible party. Their assistance can help you reduce the risk of late payments or property damage.

  • Easy Documentation

To sell or buy, the documentation is a must. A layman or NRI may not be aware of updated complementary laws and regulations. The end-to-end documentation support of experienced property managers helps in discovering the upgraded laws and all legal requirements. Moreover, they are able to help in preparing for buying and selling by enclosing Khata/ Patta, a copy of payment receipts for property tax, stamp duty and registration, and utility bills. NRIs are mostly aliens to these requirements because they cut off from the country for a long time. For them, these agents are like angels.

  • Property Inspections

Effective property management involves regular property inspections, and the hired real estate agents conduct these inspections. They assess the property’s condition, identify documentation needs, and ensure buyers or sellers are complying with the terms of agreement. In addition, these agents can address maintenance issues promptly, preventing them from escalating into more significant problems. They also come up with lease terms, such as restrictions on pets or smoking, in order to maintain the property’s condition and value.

  • Rental Clearance

The property managers handle rent collection and financial management for property owners. For rent collection and maintaining accurate financial records, they are inarguably efficient. These experts can also provide detailed financial reports to property owners, allowing them to track income and expenses related to their properties. This happening streamlines the financial aspect of property management, providing property owners with a clear overview of their investment’s performance.

  • Property Maintenance

This is an ongoing responsibility of this profile. The property agents often keep a contact list of trusted contractors and legal service providers that can promptly address documentation and property maintenance needs. These professionals skillfully coordinate and oversee maintenance tasks, ensuring that properties are well-maintained and addressing any issues that may arise. By promptly addressing maintenance concerns, they help preserve the value of the property and enhance tenant satisfaction.

  • Resolve Conflicts

It’s important to maintain peace in the property. Some annoying tenants may create ruckus and bitter the relations. In that case, these managers intermediate, address concerns, and facilitate effective communication.  In the event of disputes or conflicts, they bridge the gap through negotiation and problem-solving skills and find mutually beneficial resolutions. This helps maintain a positive landlord-tenant relationship and ensures a harmonious living environment for all parties involved.

  • Update About Laws & Regulations

Another area where real estate agents provide value is in staying up to date with changing laws and regulations. Property management is subject to various legal requirements, and agents stay informed about any changes or updates. This ensures that property owners remain compliant with laws related to rental properties, avoiding potential legal issues or liabilities. Agents provide guidance and advice to property owners, helping them navigate legal complexities.

Lastly, real estate agents offer peace of mind to property owners by handling the day-to-day operations of property management.

Why Should NRIs Invest in Indian Real Estate?

Why Should NRIs Invest in Indian Real Estate?

NRIs are likely to invest 12% in the Indian real estate sector by 2023 and have already invested $15 billion in 2022. Currently, the market size of Indian Real Estate which is US $200 billion is anticipated to rise to US $1 trillion by 2025 and is likely to be 13% of the country’s GDP, according to a news report.

NRIs or Non-Resident Indians have several reasons to invest in the Indian real estate market. Here are some concrete reasons with relevant statistics and resources to back them up:

  • Indian Currency Value

Non-residents of India find investment in the real estate a good alternative to add value to their money over upcoming years. Additionally, this option protects their money against ups and downs in currency. The recent fall in the currency rate has upped the demand for homes.  If you monitor the value of Indian rupee, it has been consistently scrolling down from 8.6 percent in 2018 to 1.5 percent in 2021. Even, this year also witnessed an all-time low of Indian currency rate from INR 74.40 to INR 81.88.

The reason of this downfall is a growing trade deficit and hiking petroleum prices. Moreover, the US interest rates are also increasing. Globally also, the recession is on the rise.

This much decline in Indian currency rate has brought NRIs to the profitable side because they need to spend less to purchase a house.

For NRIs, investing in Indian real estate is a million dollars deal. This is simply because it helps them increase their financial results and also, add a diversity to their portfolio. Mostly, this emigrants’ community from the US, Canada, the Middle East, Europe, and other Asian countries is fond of investing in cities like Gurgaon, Bengaluru, and Hyderabad.

Additionally, these emigrants also show their likelihood to purchase sizable homes in their own hometowns. This practice has seen improving in Tier 2 cities. Since the outbreak of the pandemic, Indian families are in the need of living together with their parents and grandparents.

  • High Return on Investment

The Indian real estate market has been one of the best-performing asset classes in the last few years, providing high returns on investment. The growth rate of Indian economy is steadily robust, and hence, projected to be 6.9 percent of the full year and its real GDP is 7.7 percent that is going up year-on-year during the first three quarters of the fiscal year 2022-23, as per a report.

Also, a minimum of 6% to 8% increment in property prices across south Indian markets is likely to result in higher land value and cost of raw materials used in construction.

  • Stable and Growing Economy

India’s economy has been growing at a steady pace, making it an attractive destination for investment. The country’s GDP is expected to skyrocket at a rate of 10.5% in the fiscal year 2021-22, according to the International Monetary Fund (IMF).

  • Affordable Prices

The Indian real estate market offers affordable prices compared to other countries, making it an attractive investment destination for NRIs. According to a report by JLL India, the average residential prices in India are 4.4 times lower than in Hong Kong, 3.7 times lower than in London, and 3.3 times lower than in Singapore.

The residential apartment market in India registered record the sale of property, which is close to 52,000 units in Q1 2022. It marks an increase of 11% on a sequential basis. Sales for the quarter exceeded the average quarterly sales by a significant 148%.

  • Increasing Demand for Housing

With a growing population and urbanization, the demand for housing in India is increasing rapidly. According to a report by KPMG, the Indian real estate sector is expected to reach a market size of US$1 trillion by 2030, driven by demand from the affordable housing segment.

  • Favorable Government Policies

The Indian government has introduced several policies and initiatives to boost the real estate sector, including the Pradhan Mantri Awas Yojana (PMAY) scheme, which aims to provide affordable housing to all by 2022.

  • Simplified Buying Process

India also has tiered cities, wherein the government infrastructure expenditure is recorded way better in tier-one cities because of their best connections. On the other hand, the condition of Tier-two and Tier-three cities is weak because of weaker connections.

Indian cities in Tier-two have more communication facilities, which attract businesses and enterprises there. Another reason for this engagement is a significant infrastructure growth there. In all, these cities have been much improved in terms of digital and inter-cities connection. The broadband speed is continuously growing, whereas the prices of mobile data have come down. It means that the availability of data in these cities is smooth and affordable.

  • Trustworthy & Transparent Deals

The reforms, such as the RERA Act (Real estate regulatory authority) have attracted NRIs to invest, are initiated by the government. So, non-residents have shown their trust in its transactions. This type of reforms has increased the confidence in our non-resident community, which helped in addressing the issue of distrust.

RERA has actually made it easier and hassle-free for them to buy or sell homes. It has eliminated the chances of being tricked or cheated. There is no hidden cost associated with any transactions, which shows higher transparency for both, buyers and sellers.

  • High Resale Value

The intention of NRIs is very clear in regard to this investment option. They prefer it as an investment for getting a higher rate of returns, as mentioned above.

Where the debt securities or the price of gold is underperforming in a global market, real-estate performs better. However, stock market or mutual fund investment is also a good option, but it takes multiple unpredictably large swings. What it all means is that real-estate offers a secure investment option with all positive sides over other investment options for NRIs.

  • Tax Benefits

Tax benefits such as deduction of interest on home loans and exemption from capital gains tax on the sale of property if invested in another property.

Why to Hire S2NRI for Property Management Services in Mumbai?

Why to Hire S2NRI for Property Management Services in Mumbai?

Services 2NRI or S2NRI is a reputed NRI consulting company, which has been assisting natives of India for over a decade. We have a legal team that helps in managing your property well. Here are the topmost reasons why you should hire us for managing your property in Mumbai.

  • Fixing Right Rental Rates

We provide the right rental rate, which is based on the market study. Our rental rates are decided while maintaining a balance between your monthly income and low vacancy rate.

  • Online Rent Collection

Our legally certified managers are here to manage rental collection and security deposits on time. We use efficient and online payment methods to effectively and timely collect rent. It prevents any lags in the rental collection and also maintains a smooth flow of monthly income.

  • Rely on Digital Marketing and Advertising

We have years of experience in this domain, which guides us to smoothly sail across challenges in property management. Digital marketing and online advertising are the best alternatives that we use to quickly fill your property so that you can have rental income consistently.

  • Find Right Tenants

Finding unproblematic right tenants is difficult. We have an experienced legal team that verifies tenants before providing accommodation. This verification includes a criminal background and security checks. We also focus on discovering their credit reports, and employment, and referring to previous landlord experience.

  • Verifying Tenants

Tenant management requires expertise. We have some experts that have been excellent at managing the best tenant-landlord relationship. They religiously follow routine and emergency maintenance together with routine house inspections. In the case of any conflict, they settle down the matter legally and humanely.

  • Build Relationships

We are in the practice of building relationships because property management requires repair and servicing more often. So, we have a good network of workers, tradesmen, contractors, suppliers, and vendors to ensure property management support. They are all affordable.

  • Being in Compliance with Property Law

Renting and property maintenance are regulated by certain laws and regulations. The local, state and federal regulations together with hair housing regulations are all-inclusive in them. We always stay updated on the amendments in them for avoiding any lawsuits and stay in compliance with them.

  • Suggesting How to Invest & Multiply Income

Our property management dimensions are not limited to only maintenance and rental income. We also guide landlords on investing their rental income in a profitable deal. Simply put, we help in multiplying your income by suggesting legally valid and advantageous investment opportunities.

  • Maximizing Your Profitability

There is a fixed charge for property managers, and it is a specific percentage of your rental income. Generally, it is charged between 6% and 10%. We are flexible and try to maximize value in return for this money. In short, we fully justify our role as a trustworthy property manager while adding some valuable services.

Tips for NRIs to Follow When Buying Property in India

Tips for NRIs to Follow When Buying Property in India

Recently, RBI has permitted non-residents of India to invest in agricultural or plantation land and a farmhouse. This is an addition to the rights for NRI who want to buy a property here. Earlier, they were able to purchase a residential or commercial property only.

Governing Law

A few years ago, investing in real estate in India was no less than an uphill battle. But over the years, the legal reforms have made NRI property management and buying way easier. This process is now hassle-free.

Thanks to some specific legal reforms the Reserve Bank of India (RBI) in the Foreign Exchange Management Act (or FEMA)!

  • Sole Acquisition of Property

Its actual beneficiary is an NRI. A non-resident (NRI) is one who has spent more than 182 days in India but living abroad as a temporary resident. They can now buy agricultural land under the 1999 FEMA.

However, the NRI can acquire any immovable property in India as a gift from a resident of India or an Overseas Citizen of India (OCI). The Companies Act, 2013 allows it.

  • Joint Acquisition of Property

A person resident who lives outside India is considered an NRI or an OCI. He may acquire a piece of immovable property, which should not be agricultural land/ farmhouse/ plantation property. He can jointly acquire it and the acquirer can be his/her NRI spouse. Here, a condition is applied. This joint acquisition is possible if the consideration for transfer shall be made from the following method:

  1. It can be funds sent through inward remittance in India from any place, except India, using any banking channel.
  2. Funds transferred or maintained in any non-resident account to comply with the provisions of the FEMA and different regulations regulated by the RBI.
  • Transaction Guidelines

The Act states that a traveler’s cheque or foreign currency notes shall not be accepted to pay for any transfer of immovable property. Any mode other than those specifically permitted can be the following:

  1. Through a marriage that has been registered for a minimum of two years immediately preceding the acquisition
  2. furthermore is that the NRI spouse is not otherwise prohibited from such acquisition.

How to Pay?

For the payment against the property in India, it is a must to transact in Indian currency. Non-residents may use their NRI account of an authorised Indian bank. This is compulsory to use Non-Resident Ordinary Account (NRO), Non-Resident External (NRE), or Foreign Currency Non-Resident account (FCNR).

There is also a provision for loans. The RBI allows them to lend money for investing in property in India. In this case, EMIs can be paid in these ways:

  • Remit the amount from NRIs foreign bank account by using a regular banking channel
  • Issue post-dated cheques or use NRE, NRO, or FCNR account’s electronic clearance service (ECS). Alternatively, you may pay through rental income.

Power of Attorney

Power of Attorney empowers a solicitor or any other person to undertake transactions for immovable property in different places in India. It’s legally valid and compulsory to have a registered version of a Power of Attorney. This legal document authorizes another person to carry out transactions, or attend the registration or documentation procurement related to the sale or purchase of a property on behalf of the actual buyer.

It is legitimate to provide a special or specific power of attorney to any trustworthy adult Indian native. This option helps the authorised person to complete the necessary paperwork or intended formalities on behalf of the NRI when he is not physically present here to sign the deal.

Verify the Real-Estate Project & Company

Take into account that an under-construction property should be bought if it’s a part of a project registered with the Real Estate Regulatory Authority.  Also, find out if the National Banks for loans have pre-approved the project. It ensures that the due diligence about that real-estate project and the construction company has already been executed.

 

How S2NRI Help NRIs in Property Management?

How S2NRI Help NRIs in Property Management?

Property management is a practice of managing things involved in controlling, maintaining, and oversight of the apartment, house, bungalow, or any piece of land. These practices are applicable on residential, commercial, and real estate land.

Thanks to organized consultants and agencies that take care of these fixed assets as their own while adding more values like finding tenants!

Reasons why you hire S2NRI an NRI property management

  • Do the Paperwork

Renting a house requires police verification of the tenant. If possible, do seek the office identity of the tenant during screening for avoiding any problems in the future. Cover all necessary details like name, address, parents’ details, monthly rent, and all assets in the house. However, managing all of these things is cumbersome. Here, the expert non-resident property consultant can help.

  • Address Tenant Issues Easily

Tenant management can be a big challenge, and it can be more troublesome if you’re abroad. This process involves screening him, collecting rent, addressing disputes among different tenants, and maintaining the accommodation. Hiring a property manager can let you get off these challenges easily and quickly.

  • Odd Hour Requests

Requesting the landlord at 1 AM for letting in or sending a duplicate key can be difficult. Unaddressed odd-hour requests can lead to break-ins or evil practices. Apart from that, the sudden sewage blockage or fire, or short circuit may cause big trouble, which needs immediate solutions.

  • Legal Support  

NRIs emigrate, which makes tenancy management difficult. There are many legal concerns associated with paperwork, tenant screening, renewal, and eviction for being unable to pay rent. From distance, managing these things is not possible. Here, Services 2NRI comes into play, which offers legal and liaison services to NRIs. This is how we protect them from hassles that often appear in managing the property.

  • Property Maintenance & Repair

The most obvious reason to hire a property management agent is its timely maintenance. Not only does it keep the real estate maintained, but it also attracts prospective tenants who become ready to pay a high rent. From mending a wall or plumbing to renovating the entire premise-all matters associated with it can be resolved in a short period.

  • Enable Tenants to Manage Supplies

Most of the real estate management agents have contacts with vendors in the local area, which enable tenants to manage supplies of goods and services effectively. Property managers assist in availing housekeeping and supplies of commodities via trusted contacts of vendors, merchants, or suppliers.

  • Evicting Tenants without Hassles

Making tenants vacate the NRI property can be a nightmare. It requires patience, experience, and effective strategy. The property managers foresee the prospective challenges like delaying rent or confiscating the house. They take all legal steps before accommodating a tenant, which covers on-paper screening, renting, and rules to stay in. These practices help in maximizing rental income with the least requirement of any legal action. Besides, you may revise the rent as per the market trend.

  • Rental Income Tax

Rental income from the property in India can be taxable, as it is categorized as a capital income. You may find paying property tax tedious because it requires a lot of paperwork, forms to avail claims, and visiting the tax department frequently.  Here, you cannot do the plus and minus on your own. So, you need an expert advisor. Hire us to get end-to-end assistance on property-based tax deductibles.

  • One Time Investment for Lifelong Income

Property is the only thing that does not perish. Nor does its value decline. It consistently rises. The non-resident community requires professional support and consulting over its valuation and modification updates. This knowledge can improve the rental income, impacting maintenance and insurance costs.

  • Fill the Gap Between Tenant and Landlord

Property management in India needs expert managers who have all capacities and clarity over the related matters. Their expertise can help non-residents resolve real-estate-related matters over the phone or by physically visiting there if required. In addition, these experts can easily discover fake excuses or over smartness of tenants by arousing sympathy at the time of rent payment.

  • Consistent Source of Rental Income

The non-resident community often invests in real estate for seeking passive income. This is a bumpy way, which has a ton of hassles, especially in paperwork. A property management consultant can enable them to own and manage it effectively for a regular passive income without personally handling tenancy and legal responsibilities.

How does Services 2 NRI help emigrants manage property in India?

Services2NRI has been here for years, addressing non-residents’ concerns about tenancy and property management. We understand how challenging it is to effectively manage your farmhouse, apartment, or any property remotely. Our legal experts and consultants help you to have a peace of mind while having end-to-end assistance in:

  • Buying & selling
  • Utility bill payments
  • Statutory Payments
  • Property Monitoring
  • Rental Agreement Assistance
  • Property Management – Others
  • Encumbrance/ Khata/Patta, 7/12 Certificate
  • Tenant Management/ Vacating Inspection

How to protect NRI property in India?

Deploying a property manager can help you in protecting the property in India. He can help you with all of the following things:

  • Discover Verified Tenants

Accommodating a house requires a tenant. But, this can be a wrong decision if no proper verification goes on. The screening is necessary, which cannot happen remotely. Here, the experienced agent can help in screening the tenant properly if he has a clean record.

  • Regular Check-up of the Property

There may be the case of an unconstructed or vacant property. These agents can regulate the monitoring of your property to check if the property is intact and unoccupied. In case of any illegal acquisition, these agents timely inform and protect the property.

  • Timely Rent Collection

Calling tenants every month is annoying. Hiring an expert can take this responsibility, and you just sit back, having peace of mind while adding more capital through a passive source of income (i.e. rent) every month. The utility bills are also paid by them on time.

  • Fix Interiors and Maintain

Renting out your fixed asset can help you keep your house maintained cost-effectively. Moreover, it’s not a painstaking experience to personally come down here, compromising on work and investing a massive amount in your property maintenance. The professional consultants support in all of these matters while saving hundreds of dollars.

  • Liability Payments

Leasing out a property pushes you to monitor the timely payment of utility bills. The experienced consultants take all responsibility for coordinating your liabilities like property tax & khata, etc.

Tips to Consider Before Drafting a Rental Agreement

Tips to Consider Before Drafting a Rental Agreement

What is a Rental Agreement?

It’s a legal contract of the rental between a landlord and a tenant. It states the guidelines for temporary possession of the property. This agreement differs from a lease, which is for a fixed term.

This contract plays a key role in settling down the conflicts between the tenant and the landlord. Sometimes, their relationship turns bitter due to complaints and misunderstandings. This agreement becomes crucial in resolving the matter.

Who should draft this rent agreement?

This agreement can be drafted by either the tenant or the owner of the property. In the case of NRIs, the property management company will be responsible for it.

It requires registration from the court or sub-registrar office. However, it may be notarized.

There are certain things that should be taken into account before renting out a property or drafting a rental agreement. Below are a few requirements for it.

Requirements for Drafting

To draft the rental agreement, you need to follow these steps:

  • Openly talk & discuss important matters like rent, security deposit, maintenance charges, etc.
  • Roughly draft with details like names of both parties involved in the agreement and address of the property.
  • Mention important clauses in the document.
  • Purchase a stamp paper of recommended value. Print what you have drafted on the stamp paper.
  • Get the paper signed by both tenant and landlord in the presence of two witnesses.
  • Visit the local sub-registrar office to get it registered.
  • In case of NRIs, a Power of Attorney in the name of the NRI property management agent or company will be required.

However, the cost drafting can be equally shared between the property manager and the tenant. The metropolitan (like Delhi) citizens have to get it legally registered to avoid a penalty of INR 5000. Or, the landlord can be imprisoned for three months because it would be a violation of the Delhi Rental Act Control.

How does an ideal rental agreement look like?

The ideal rental agreement should have a list of clauses that avoid any type of disputes or conflicts. For this reason, it should not miss out on a few key points, which are here for your concern:

  • The ownership agreement should be properly documented, and a copy of the similar one should be attached during the registration of the rental property.
  • There should have a clear mention of the contract period of the rental property. The notarization can be sufficient if the period of the agreement is less than a year. In case it exceeds, the registration from the sub-registrar office is a must.
  • Both parties should agree on the drafted terms and conditions that apply to both the tenant and the landlord.
  • All facilities, utilities, and appliances should be listed out in the agreement, which is likely to e offered to the tenant.
  • Do mention the provision of the repair and maintenance of utilities. This agreement should clearly read out the state of responsibility of payment for repair and maintenance.
  • This paper should state a crystal clear amount of rent and deposit. In addition, there should be scenarios wherein the landlord can terminate the contract and withhold the security deposit.
  • There should be a clear mention of restrictions that the landlord may put on the tenant. It could be anyone related to the choices of food and the guests of the opposite gender coming to the property.
  • The rent agreement should clearly read the purpose of the rented property. If it’s a commercial building, it cannot be used for a purpose other than any commercial purpose. There should be a written approval of the owner if one is using it for some other purpose.
  • Furthermore, this contract should be renewed at the end of every 11th month. There should be a track record of the security deposit and refunds if the agreement lapses.

Types of Rental Agreement

  • Rental Agreement

It is a commonly used document when a landlord agrees to accommodate his property to a tenant on rent. The purpose is only renting a residential property. This document is essential to form a favourable environment with the assurance of security from the lawsuit.

The tenant has to pay out a security deposit, which is refundable in most cases. Apart from that, there should be a monthly rent to be paid to the owner. This agreement ends in 11 months and should be renewed at the end of this tenure.

  • Lease Agreement

This agreement is crucial when a party accommodates the property for a particular number of years. The period of the agreement should not be less than a year. In this case, the monthly rent or security deposit is not required.

It is simply because the lump sum amount is paid to the owner. The owner parks this amount in the bank and earns interest on it. As the tenant vacates the property, the least amount is released to his account.

  • Commercial Agreement

The commercial agreement is drafted for accommodating property to carry out commercial purposes. The tenant is not allowed to rent it out to another party. In this case, also, the security deposit is a must, which should be paid before renting the property. Besides, the monthly rent should be paid in the account of the owner.

In the case of the lease agreement for the commercial space, it is a must to pay the lease amount before renting the property. As the lease expires, the tenant may receive the lease amount without any interest.

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