Finding possible buyers is not much different than finding possible tenants for your residential property. You can place ads at apartment complexes, shopping centers, and the local newspaper. Then you can hold open houses, arrange appointments to view the property, and negotiate terms.
The most obvious benefit of renting out your residential property is that you earn money while still holding ownership over the property. Although it may sound great there can be problems. You could possibly get a bad tenant that skips payments or damages the property during his/her stay. Of course you have the authority to kick them out but the damage has already been done. You now have to deal with the costs of repairing the property, losing out on the earnings that would have been earned while you find another tenant, and the devaluing of your property because of the damage.
To avoid bad tenants you need to screen them by asking them to fill out a rental application form. You should ask for all the information necessary to do a background check, evaluate their ability to pay, and you can ask for information that could be used to track them down incase they damage your property and skip town.
After you've found your best candidate, you will need to legally protect yourself (and your tenant) with a Residential Lease. A Residential Lease is a form that lays out any terms and obligations you provide to the tenant or that you want your tenant to follow. Any policy('s) you have on things like rules on damages and repairs or your policy on subletting should be included in your Residential Lease.
The Residential Lease legally protects you from any squabbles that often occur between tenants and landlords. What if their pet ruins the carpet? What if your tenant damages the wall(s)? What if your tenant misses a payment? What if your tenant abandons the property? It's best to clear these questions up immediately in your Residential Lease than argue about them later and not be able to do anything legally about them.
Having a Residential Lease will legally protect you and your property. The benefits of having one is obvious and the consequences of not having a Residential Lease are alarming.
With more supply than demand, prime residential property in Bangalore is scheduled for the much-awaited price correction. The city’s demand-supply mismatch fuelled a sharp increase in prices of premium residential property in the last one year, which is expected to fall marginally, with imminent supply in the market.
According to a survey by Cushman & Wakefield, a real estate consultancy firm, the existing demand for premium apartments in prime locations, such as, Richmond Town, Benson Town, Koramangala, Jayanagar, off M G Road, Cunningham Road, among others will reduce as an increasing number of independent bungalows make way for small premium apartment complexes, which will help stabilise the market, in the very near future.
A surge in real estate prices, attracted huge investments leading to increasing numbers of plotted developments and villa projects in peripheral areas, such as, Sarjapur Road, Hosur Road, Bannerghatta Road near Jigani, Bellary Road, Doddaballapur Road and Hoskote. This additional stock, according to the survey will help feed current demand, and over the next 8 to 12-months help to stabilise the continuous rise in price values.
As per the survey, barring a few micro-markets like the Sarjapur Road / Outer Ring Road; Brunton Road / Lavelle Road and the RT Nagar - Yelahanka stretch, which saw prices appreciate by over 10% during the December 2006 - May 2007 period, and most pockets clocked a moderate rise of under 5% in property prices in a majority of localities.
Anurag Mathur, Deputy Managing Director, Cushman & Wakefield, India says the last six months have seen exceedingly high price points and spiralling interest rates, thus contributing reduced interest from speculative investors, resulting in a clear shift to a largely end-user-led demand. More price sensitive locations and developments in certain parts of the city will witness a rationalisation of capital values, as the market reaches price thresholds, with new supply being infused in the market at high prices.
With South-East Bangalore seeing ample supply in the coming 12-18 months, this will contribute to a marginal correction in these localities, according to the survey.
It needs to be mentioned in this context that the supply situation for villas in the Whitefield - Sarjapur belt stands at 2,500 villas, for the current year, while approximately 1,40,000 units are expected to be delivered over the next two years.
Both Nicholas Copernicus & Property Vertical are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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