Addressing rental concerns

Bengaluru has some 40,000 unsold units in the residential space awaiting its owners.

The real estate story of the ‘City of Gardens’ has always been that of fast growth and development. From budget housing to mid-income and the luxury segment, Bengaluru today boasts of innumerable options suiting every buyer’s budget -from the aspiring middle-class to the uber rich.

The city’s success is largely attributed to its IT sojourn as well as lifestyle and service industries’ that have flourished in the Karnataka capital. This has given rise to a migratory population in large numbers, contributing to a healthy trend in ‘for-hire’ market.

Attractive avenues

The influx is largely of young aspiring Indians from other states wanting to explore Bengaluru as a career destination; many embrace the city for job deputations or placements. One does see some discomforting issues and disputes, beginning with improper drafts, registrations (or the lack of it). Normally, the hired broker helps you with the agreement, but over the years with the growth of housing portals, the buyer and seller connect with each other directly.

Should the need be to own or buy a property outright, you must know that Bengaluru has fathomed a cosy ground, consolidated over time and is now poised for a growth path in the future. For high-technology service enterprises, Bengaluru remains a hot and happening ground that could only see development in the period to come.

But according to many industry reports, the last year wasn’t a great one for Bengaluru, especially in the residential segment. However, the relaxed FDI norms, improving economy, takers for the India story in the international circuit could well supreme its influence on the cityscape, now. The budget or mid-income segment could do better than the luxury, and one gets that impression as you travel down the City. Lots of projects under construction are vying for your attention.

According to a report, Bengaluru has some 40,000 unsold units in residential awaiting its homeowners. Most of these units are in the price bands comforting the higher middle-class buyer, but takers for budget homes in the bracket of Rs 20-35 lakhs have picked up, powering a healthy trend there.

Things to keep in mind

If you are one of the many looking to rent out a place rather than own it, there are many factors to consider. Right from the fine print on the agreements to the elaborately detailed leases, there are major avenues to be explored before zeroing in on any realty space. To help you get started, here are some guidelines:

First and foremost, rental deeds need to be registered with authorities and it is in the interest of both the licensor and the licensee to do so. Especially, in cases of deed renewals, there is a complete lax on the part of the licensee to renew. Agreements are generally classified into two types, leave and license agreements and/or lease agreements. A few things to look for in rental agreements before you sign on the dotted line are:

 Checking the veracity of the owner.
NOC from society or lender bank, if mortgaged.
Length of contract, mentioning start and end date.
Mention of use of facilities like clubhouse, parking, etc.
Clear payments or dues of utility bills like electricity, water, as also society dues and property tax, rent escalation or percentage incremental for the following year, in case of longer term.

Do peruse the above points clearly and only then, enter into an agreement to avoid any pitfalls later.

From close to five-billion-dollar investments in property sector, Bengaluru has received the highest chunk invested in development of commercial assets. This simply means a steady need of employment is sure to propel the residential segment into a robust tomorrow. So, if Bengaluru is on your map, the time to invest is now!

(The author is executive director, Housing.com)