With the continued migration of residents both within the country and abroad, investors in real estate have all along been finding it difficult to manage their properties during their absence. There were a few options except to rely on relatives or friends for such needs. But time is changing especially with India liberalising investment norms by foreign companies. One area that has virtually caught the attention of the foreign companies involved in property management is the tremendous potential at metros and secondary towns.
Asset management wing of the real estate sector is growing very fast in India. Property managers provide a range of services to property owners including property maintenance, renting, renovating, and security of a residential or commercial property. Property manager liaisons with owners, tenants and contractors to make the whole owning/renting process seamless and generate a highest possible return for property owners. The main factors responsible for leading the booming growth of property management services in India includes the following:
One Stop Solution for Property Owners
Only owning a property doesn’t suffice in earning a good rental income. Instead you need proper management and care of the property. A property owner needs to - refurbish the property in case of any damages, look for a good tenant when the property is vacant, the safety of the property and fulfilling all the dues including bills and taxes on time. Property management firm takes all these tasks care on behalf of a property owner in very nominal charges. Moreover, they are experts in their field and get all these works done flawlessly.
Property management firm deals with the tenant and gets all the legal documents completed including police verification, rent agreement, etc. Moreover, they collect the rent, pay the bills & taxes and keep track of each & every important thing associated with the property.
Increasing Demand for Residential Real Estate
There might be several economic or other disruptions in the growth of real estate sector in India, but the fact is that growing Indian middle-class needs house to live in. According to an estimate approximately 60 crore people in India would be living in cities by 2030. These numbers speak the kind of demand we are going to see in Indian residential real estate market.
As more and more people would be moving into cities and demanding the houses, the demand for property management services is bound to go up. Currently, we can see this trend in various metropolitan cities as well where the property owner doesn’t have time to look after their properties due to other pressing obligations. And they take the services of property management firms like Propdial.
The real estate sector is one of the most globally recognised industries. In India, real estate is the second largest employer after agriculture and is slated to grow by 30 percent over the next decade. The real estate sector comprises four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations.
The Indian real estate sector has witnessed high growth in recent times with the application for office and residential spaces booming, and so the Property Management services have also grown rapidly in last few years. The property manager is the owner's partner in maximising the return on investment of the property. Management companies deal directly with prospects and tenants, saving you time and worry about marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.
Many real estate professionals have looked at property management and changed their minds when the scope of the management tasks and record-keeping are fully understood. It's a niche for the more detailed and responsive in the profession. Plus, a good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands. Although hiring a property management company has many advantages, using one can be expensive. And, even apart from the cost, relying on a property management company is not for everyone.
There are an estimated 30 million NRIs living in 130 countries around the world. Even PIOs are keen to invest in the growing opportunities available in Indian real estate market. But a lingering doubt is that there are land grabbers, tenants not vacating the premises and inadequate workforce to maintain the property back home. With India continued to be the largest recipient of remittances, with remittances rising from $49.6 billion in 2009 to $55 billion 2010, overseas Indians are keen to look at investment opportunities in real estate.
The author, Vinay Prajapati, Founder, Propdial