Shajai Jacob | ApnaComplex Blog | Apartment Management Platform

Shajai Jacob
December 26, 2022

How Rental Platforms are Helping NRIs Monetise their Real Estate Investments

Real estate has always been one of the most attractive investments for Non Resident Indians (NRI). This interest has further gone up in the post-COVID phase with an ANAROCK report revealing that 71% of NRIs preferred investing in the Indian housing market. This was noticeably higher than the 55% of respondents who showed the same preference in the pre-Covid survey.

The inclination toward property investments has remained despite the emergence of other avenues such as bonds and mutual funds. However, there are also many challenges, particularly in ensuring that the investment remains lucrative. Renting your home is the most preferable option since it ensures a passive income on the property, thus increasing its ROI. However, managing rentals can be extremely challenging in one’s absence.

ApnaComplex Rentals offers an easy solution through end-to-end rental management. With a trusted Estate Portfolio Manager handling all your requirements, you can ensure that your property can accrue the highest possible returns. As a reliable and trustworthy rental platform, it is playing a vital role in helping NRI homeowners to manage and monetise their property.

Attractive returns on real estate

There are good reasons for NRIs to pick property over other options. This faith was further renewed during the pandemic when real estate emerged as a safe bet in a turbulent global economy. Some of the reasons for this preference are:

A home in India represents a powerful nostalgic connection for many NRIs.
As a retirement nest on their eventual return.
Healthy ROI since the property is widely viewed as a safe investment with assured returns.
Other options like fixed deposits or gold are more susceptible to market volatility.
A reviving Indian economy means robust ROI. This prompts a renewed interest in taking part in the booming India story.

However, owning a home is not without its challenges. It can be difficult to maintain a home for absentee owners. Vacant homes can fall into disrepair very quickly. Plus, even an empty home can mean indirect expenses, such as maintenance charges.

A rental management company like ApnaComplex offers the most viable solution. NRI landlords can ensure regular maintenance of their homes by renting out their properties. The rent also helps in offsetting any loan EMIs or other expenses while ensuring a regular income.

Rentals with ApnaComplex

ApnaComplex has emerged as the most viable solution for NRIs with properties in gated communities. As a one-stop rental management service, it can help them scout for tenants and ensure that all documentation is taken care of.

Single point of contact: With ApnaComplex Rentals, homeowners have a single point of contact through a dedicated Estate Portfolio Manager for every gated community. This makes it easier for owners to coordinate and follow up on any new developments.

Key management and site visits: The non-resident landlord does not have to worry about conducting site visits for prospective tenants. With multiple brokers, many owners also have the problem of leaving their keys with a trusted party. ApnaComplex Rentals offers key management where the key is entrusted to the EPM for safekeeping. All site visits are also handled by the EPM.

Trusted tenants: One of the biggest concerns for non-resident owners lies in checking the trustworthiness of the tenant. Many people prefer to leave their homes vacant to avoid any hassles. ApnaComplex offers KYC and background checks to ensure that only verified tenants are considered.

Maximum returns: Rental income ensures that non-resident property owners can earn a passive income on their investment. ApnaComplex ensures maximum rental yield, thus maximising your ROI.

All-inclusive services: With ApnaComplex you get access to a one-stop rental management service, from support with negotiations to rental or lease agreements. Many EPMs work with non-resident owners to ensure that all their requirements are addressed remotely and without any hassle.

Payment services: As a complete society management app, ApnaComplex also offers a payment module for rent and maintenance charges. Landlords can collect rent, pay maintenance and common area charges. They can also check the status of various payables and get reminders in case of overdue.

Move-in / Move-out services: With the ApnaComplex app, landlords can seamlessly manage their Move-in / Move-out requirements and ensure that all the paperwork is in order when a tenant moves in. With many societies now mandating move-in requests through the app, a homeowner can easily check all requirements remotely. You can read more about its benefits here.

If you want to know more about ApnaComplex Rentals, write to us at rentals@apnacomplex.com.

Rental Boom: What’s Driving it & Why it’s Here to Stay

The rental industry is on an impressive comeback trail. After the initial setback of COVID first phase, the industry has bounced back this year, reporting an impressive surge in residential rentals across the country. In cities like Bengaluru, rents have shot up by as much as 40%. Other metro cities have seen similar hikes

Apart from the resumption of the economy, this rebound also has far-reaching consequences for urban planning. It shows a healthy upward swing in real estate ROIs. It can be a decisive factor in determining future developments and further urbanisation. It will further encourage consolidation in the rental industry.

This is evident by the strengthening of emerging players like ApnaComplex Rentals in streamlining the system. By leveraging technology to resolve existing challenges in the system while creating an improved user experience, ApnaComplex Rentals is playing a critical role in bringing accountability and expediting lagging processes.

What’s Driving It?

To understand this momentum, we have to look at the factors driving the revival. These include:

A correction: The surge in rentals can be viewed as a long overdue correction. In the economic upheaval of the pandemic, many landlords were forced to cut back on rents. Many also agreed to postpone rent collection. Apart from requests from tenants, they also faced political pressure. As a result, rental hikes were kept in stasis in 2020-21. Hence, the current hike indicates a correction as homeowners aim to recoup their losses.

Opening of offices: As economic activity resumed and the lockdown was removed, migrant workers and professionals started streaming back to their work. This led to looking for rented homes in metropolitan areas, pushing up the demand. According to an ANAROCK report, the hike in rental demand in the top seven Indian cities has been an impressive 10-20% in 2022 as compared to the pre-pandemic period in 2019.

Lagging supply: Even as demand goes up, supply has seen a reversal. Inventory swiftly dwindled as construction came to a virtual halt during the initial phases of the pandemic, leading to an imbalance between demand and supply. The result is that landlords in high-demand areas like gated communities are seeing an unprecedented surge in rental incomes.

The Road Ahead

The question now is whether it’s a brief corrective surge or will we see a consistent upward swing in rentals? All indications point towards the latter possibility. As companies encourage more employees to come back to office, demand for housing will spike further. The current pace of real estate construction projects is not fast enough to keep up. This means that rentals may continue to rise for some time.

Most importantly, the growth of the rental industry will come across different segments and not just gated communities. With the government expected to renew focus on affordable housing, tenants from different income classes will find more and better options. With more states expected to adopt the Model Tenancy Act in the coming months, the rental industry will also see much-needed transparency and regulation.

It is expected to facilitate further consolidation of organised players like ApnaComplex Rentals. This will lead to focus on maximising rental yields for landlords while ensuring that tenants get quick delivery and value for their money.

Creating a Paradigm Shift

The surge in rentals is now being led by organised players like ApnaComplex. Traditionally, the rental industry has been dominated by unorganised local brokers who were challenged by lack of resources in terms of technology or manpower. ApnaComplex is changing the status quo by providing benefits for all stakeholders including homeowners, the society, and tenants.

In a first for the industry, ApnaComplex Rentals offers the society a fee share from rental transactions. It also ensures a higher rental yield for the landlord (by 4.5% to 5%). This is further enhanced by a lower three-week transaction fee, as against higher market operating charges, ensuring maximum gains for the landlord.

If you want to know more about ApnaComplex Rentals, call us at 0120 71173344 or write to us at rentals@apnacomplex.com.

1 Comment InProduct News

ApnaComplex Rentals, creating a paradigm shift

Shajai Jacob
October 20, 2022

Data Insight With Personalised Service: How ApnaComplex is Driving the Change in Rentals

For years, the residential rental brokerage has been dominated by local agents. Largely unorganised, these agents often lived locally and had limited resources. Most rental agencies were effectively manned by a single agent who kept tabs on vacancies in the area. With the internet came the digitalisation of the rental industry. However, this was largely limited to property listings where people could view different vacancies in a city. The online portals rarely affected the local broker who continued to operate in silos, relying on their extensive network.

As the rental industry turns a full circle, we are again poised at a turning point where the online-to-offline model is fast gaining traction. Combining the data insight of a tech-first approach with personalised services of offline brokers, this model has evolved partly to meet changing customer requirements and partly in response to the need for hyper-accelerating rentals to meet exploding demand.

Working in Silos

Like other industries, the internet was expected to be a game changer in residential rentals. Online listings were expected to streamline the process, directly connecting the owner and the tenant, taking out any unnecessary third party from the equation. The reality was starkly different. Most such portals operated on a subscription basis where detailed information was only visible for a nominal fee.

More importantly, they lacked the network and reach of local brokers. The model depended on homeowners listing their property, but found few takers. Quite often the contact details were of brokers who used these portals to increase their reach. In fact, local brokers were often more likely to close the vacancies in their catchment area, further strengthened by personal service.

Yet, they too faced challenges. Most potential renters are now increasingly likely to do their initial research on the web. They also expect end-to-end support that can strain smaller brokerages. There have also been concerns about ethical conduct where a broker may try to reduce the rent to find suitable renters in a short time.

Online-to-Offline Approach

A new generation of tech-savvy consumers and the increasing digital penetration in our daily life is now creating another paradigm shift, bringing together online and offline approaches in a manner to enhance each other’s advantages. Online reach is becoming increasingly critical to reaching the millennial buyers who form the dominant demographic in the real estate industry today. They are more likely to look for their next home online than meet multiple brokers.

The increasing digital penetration has further accelerated this trend, giving us the tools to refine our search and correct the current imbalance between surging demand and low supply. However, there is also an increasing realisation that this must be supplemented with personalised service. A digital-only approach bypasses the personal touch that can be instrumental in building long-term relationships. Hence, leading to an approach where offline and online can be combined.

ApnaComplex Rentals, Creating a Paradigm Shift

ApnaComplex Rentals leverages its tech-first approach with a pan-India network to bring together both online and offline models in rentals, thereby creating a smooth end-to-end service. On the technology side, it benefits from data insight derived from the app’s adoption in gated communities. Rental availability can be determined from move-in / move-out data, while lease agreements help in predicting availability.

With an extensive network in gated communities, built on continued relationships with Management Communities and Resident Welfare Associations, we can also access a verified pool of tenants and landlords. This resolves one of the persistent challenges of carrying out relevant verifications.

It is further supported by an offline approach where an on-site Estate Portfolio Manager (EPM) handles all requirements on behalf of the landlord, including assisting with the lease agreement and move-in. ApnaComplex Rentals also activates the unorganised local broker community in AC micro markets while partnering with leading real estate portals to funnel leads. This ensures that demand can be met in a short span.

In short, ApnaComplex Rentals benefits all stakeholders.

Largest platform for verified pool of tenants and landlords
Society gets a share in transaction fees
End-to-end rental management for landlord
High rental yield
Three week transaction fee, lower than market rates
Quick closing of demand by tenant
Strong offline network with a dedicated EPM and local brokers

If you want to know more about ApnaComplex Rentals, call us at 0120 71173344 or write to us at rentals@apnacomplex.com.

What is a Rental Agreement & Why you Should Get One

The rental agreement is the most important document in the renting process. It is that crucial deed that lays the foundation for the rental transaction, its duration and renewal. As a legal document, it also provides both the landlord and the tenant protection against any unfair practices by either party.

ApnaComplex Rentals is a one-stop rental management service that can help landlords and tenants with formulating and registering a rental agreement. In addition, they can also benefit from move-in / move-out services, home insurance coverage, and getting the property ready for occupation.

What is a rental agreement?

A rental agreement is a contract between the landlord and the tenant that governs a tenancy that lays down related terms and clauses. As a legal document, these terms and conditions are enforceable, thus making it critical in protecting the rights of both parties.

A rental agreement typically contains the following:

Name and contact details of tenant(s) and landlord
Description of the unit, including address and inventory (e.g. equipments and furniture)
Proportion or area of the property
Duration of the tenancy
Rent details including security deposit and rent due date
Terms, responsibilities, and rights of both parties
Clauses for extending or terminating the agreement

Since these clauses will be binding during the term of the tenancy, it is highly recommended to read the agreement carefully before signing. Make sure that all the terms are as per your negotiations.

Importance of Rental Agreement

Even today, the rental landscape is rife with unregulated transactions that have plagued this segment. People may choose to forgo a rental agreement to avoid paying a registration fee or to hide their income or spending. Instead, they rely on verbal or written agreements that have no legal standing. This can have disastrous consequences.

We have landlords who raise rents or evict tenants without proper notice. On the other hand, we have tenants who refuse to pay rent or evict on time. A rental agreement is meant to protect both parties. Its benefits include:

Protecting the rights of the tenant(s) and landlord
Defining the tenancy duration and its renewal or termination
Proof of residency for the tenant
Reducing the chances of disputes between the tenant and landlord

In terms of paperwork, the necessity of getting a rental agreement can differ from one state to another. However, as both central and different state governments push towards promoting ethical transactions and transparency in the segment, rental agreements will become legally mandatory.

Model Tenancy Act & Rental Agreements

The Union Government had proposed the Model Tenancy Act with the view of regularising the rental landscape. Under the act, states have to set up a ‘rent authority’ under which landlords and tenants have to register their agreement. The act will replace existing regulations in states that already have such a system.

However, it is important to understand that even when it comes into effect, it may not apply to all rental agreements. First, it is only applicable to tenancy periods exceeding 11 months. As a prospective law, only agreements registered after the act comes into force will come under its jurisdiction. Existing agreements will be governed by current regulations.

The improved regulatory framework is also expected to attract bigger players and developers. For instance, ApnaComplex includes rental agreement assistance as part of its all-inclusive services in this segment. Apart from a critical value-add, this agreement is also part of our commitment towards promoting ethical practices in real estate.

If you want to know more about ApnaComplex one-stop rental management service, call us at 0120 71173344 or write to us at rentals@apnacomplex.com

2 Comments InProduct News

Shajai Jacob
September 22, 2022

It’s Boom Time for Rental Housing Demand. What Does it Mean for You

The rental housing market is going through a boom with major metros seeing a hike in prices when compared to the pre-COVID period. Housing rents in Mumbai Metropolitan Region and Bengaluru have gone up by as much as 15-20%. In Pune, the hike is anywhere between 10-20% while the NCR has seen a 10-15% rise. Similarly, rents have gone up by 8-10% in Chennai and by 5-10% in Hyderabad and Kolkata.

What do these developments mean for landlords or tenants? Even as property owners try to maximise their profits, what can it hold for renters who are desperately seeking suitable accommodation? How do both of them find the best possible deal?

If you need help in navigating this landlord market, ApnaComplex offers a one-stop rental and resale management service. The all-inclusive services start with scouting for rentals, and includes assistance in digital rent agreement, move-in/move-out, and collecting rents.

The Housing Rental Boom

This price hike indicates a much-needed correction after a two-year-long COVID slump when rentals were slashed or plateaued. Job losses coupled with many professionals moving to their hometowns saw rentals falling in metropolitan areas while there was increased interest in smaller towns.

As offices open up and people return from their hometowns, there has been a surge of demand in bigger cities. On the other hand, new developments came to a halt during the last two years, resulting in the current shortage of housing options, especially in premium gated communities. Together, these factors have led to a landlord’s market where the homeowner pretty much gets to set the terms.

As a Landlord

For homeowners, it makes sense to cash in on the current boom to recover losses. Apartments, condos, or villas in most gated communities are likely to find takers within minutes of posting a listing. In this scenario, there are two key factors that homeowners have to keep in mind:

Finding out the rentals in the area to ensure maximum yield
Ensuring a reliable tenant who has the capacity and willingness to pay rent on time.

These issues can be challenging for many homeowners, especially if they are not located in the same area. With fluctuating rentals, it can be difficult to keep track of the current rates. Similarly, tenant verification takes time and effort that may not be possible for every homeowner.

With ApnaComplex, Rentals homeowners have the means to meet all these requirements in one place. Through a dedicated Estate Portfolio Manager (EPM) they are informed of current rates. The manager also helps homeowners to scout for suitable renters, assist in the move-out process, and carry out tenant verification.

As a Tenant

A landlord market means a tough time for tenants as they scramble to find suitable accommodation within their budget. In this scenario, they may be forced to pay more than expected while settling for a home that is often less than their ideal standard. For tenants the main factors to keep in mind are:

Finding the best deal for their money
Ensuring a rental agreement is in place
Go with a verified landlord

As a rental management service, ApnaComplex helps both the tenants and homeowners reach a mutually agreeable deal. This is followed by a duly-signed rental agreement to protect the interests of both parties. A verified repository of rental properties means that tenants can also trust the veracity of the listings. With an EPM acting as a single point of contact, the platform also eliminates the need to work with multiple brokers.

As property owners aim at maximising their rental yields and tenants try to find a suitable accommodation, ApnaComplex offers them a highly viable alternative where both parties can find an acceptable solution. With reduced fee for ApnaComplex users and no upfront or sign-up fee, it is also a more economic alternative.