Renting out


There are innumerable residential houses, commercial spaces, office space and industrial sheds are available on RENT in every nook and corner.

Commercial establishments, offices spaces and industrial units are not permitted to run in residential zones – legally, but many are leasing or renting it out.  In the event, such a situation arise that there is a dispute between the landlord and the tenant, both of them, prefer to approach the court for the redressal of their grievance, will be rapped by the court.

If the duration or the rent period is beyond 11 months, the rent agreement has to be registered in the office of the sub-registrar, but 99% of the landlords and the tenants does not execute the proper rent agreement and register the same in the jurisdictional sub-registrar office to evade stamp duty and registration fee and in the event of any dispute, they land up in trouble.

It is very important to verify the ownership before entering into the rent agreement.  In many cases, the tenants enter into agreements with agents and persons who are not the owners.

It must be noted that, these days, 90% of the properties are bought on LOANS, in the event of default by the borrower, the financial institution will attach and take over the possession of the property, the ignorant tenant will be at the receiving end, when he is forced to vacate.

It is also very important to know very well that there are no irregularities or illegalities in the construction of the building and must have been approved by the appropriate planning authorities, but none of the tenants are bothered about it, they realise their mistake, when there are legal and other issues of demolition or eviction or possession taken over by others.

Please check thoroughly regarding the ownership, taxes paid and compliance to the plan before the payment of advance.

RENTAL MARKET IN BANGALORE


THE RENTAL MARKET OF RESIDENTIAL AND COMMERCIAL BUILDINGS HAVE TAKEN A BEATING AND THE RENTS ARE DOWN BY 5% TO 25% DEPENDING UPON THE LOCATION.  THOUGH, THE COMMERCIAL BUILDINGS HAVE 50% TO 75% OCCUPANCY RATE, BUT THE DEMAND IS STAGNANT AND THERE IS ABUNDANT SUPPLY, NATURALLY, THE RENTAL REVENUE IS SLIDING.

THE RESIDENTIAL BUILDINGS, INCLUDING APARTMENTS IS VERY BADLY AFFECTED AND ESPECIALLY THE SINGLE BED ROOM AND TWO BED ROOM HOUSES AND APARTMENTS WHICH WERE BEING RENTED OUT AT EXORBITANT RENTS IN THE RANGE OF RS.10,000/- TO RS.20,000/-, IN ALL MOST ALL THE AREAS ARE DOWN BY ALL MOST 10% TO 30% AND THE OCCUPANCY RATES ARE DOWN BY 25%.

THOUGH, THE DEMAND HAS COME DOWN, IN SOME GOOD APARTMENT COMPLEXES OR BLOCKS, THE RENTAL RATES HAVE REMAINED STAGNANT IN BANGALORE EAST AND NORTH TALUKS, WHERE THERE IS CONCENTRATION OF IT INDUSTRY.

THE RETURN ON INVESTMENT THROUGH RENTAL INCOME HAS COME DOWN CONSIDERABLY AND INVESTORS ARE SLIGHTLY WARY ABOUT INVESTING WITH THE TOP BUILDERS.  

THINKING OF SAVING SOME MONEY, IF YOU ARE A TENANT, LOOK FOR A NEW ACCOMMODATION WITH LOW RENTS. 

ARE YOU A TENANT?


IF YOU ARE A TENANT, THEN YOU MUST CHECK THE FOLLOWING DETAILS.

1). WHO IS THE OWNER?

2). ID AND ADDRESS PROOF OF THE OWNER?

3). TITLE DOCUMENTS OF THE PROPERTY whether IT STANDS IN THE NAME OF THE PERSON WITH WHOM YOU HAVE ENTERED INTO THE RENT OR LEASE AGREEMENT?

4). UP TO DATE ENCUMBRANCE CERTIFICATE.

5). UP TO DATE TAX PAID RECEIPT.

6). KATHA CERTIFICATE.

7). KATHA EXTRACT.

8). WHETHER THE LAND LORD OR THE OWNER AVAILED ANY LOAN ON THE SCHEDULE PROPERTY? AND IF SO, HAS HE BEEN REPAYING IT?

9). WHETHER THE LANDLORD OR THE OWNER HAS PAN CARD OR PAN NUMBER OR IS HE AN INCOME TAX PAYEE.

Rental housing- a new legislation


A government-appointed, 19-member panel headed by Jaithirth Rao, chairman, Value & Budget Housing Corporation has recommended a new legislation for regulating rental housing and suggested that tax benefits be given to encourage developers to set up rental housing projects.

The suggestions include the setting up of fast track tribunals for speedy resolution of all rent-related cases, and giving infrastructure status to large rental housing projects to enable them to avail of tax holidays, which will lead to lower costs and has also suggested that affordable rental housing should include affordable hostels, dormitories and flats that are smaller than 60 sq m.

In Metropolitan Cities like Delhi, Mumbai and Bangalore, which have a migrant population of 30-40%, may prefer to rent houses instead of buying them.