After taking a back seat for decades, the rental segment of the residential realty space is picking up. Potential home buyers are turning to rentals as they are unable to purchase their dream house on account of astronomical capital values. The trend towards rentals is also drawing a greater number of home owners who have begun to rent out their flats.
There are however, instances of litigations especially due to the lack of safeguards on the part of the owners. If the correct procedure is followed, home owners will have a steady source of additional income as demand, already high, is projected to increase further.
A few decades ago, landlords were reluctant to give their properties on rent mainly on account of three apprehensions.
One, the fear that the property may be grabbed by the tenant and will not vacate when you want him to, resulting in long-drawn legal battle for eviction. Two, the fear that the flat would be misused and proper care may not be taken. Third, the fear that the property may be sublet to a third party.
There were lakhs of vacant flats in cities across the country a few decades ago, and none of the owners had the courage to risk it by giving it on rent. There were two main reasons. The main reason was the lack of adequate laws to protect the properties and second, there was also a lack of awareness that an agreement, if entered into carefully, could actually benefit both landlord and tenant.
In last decade, many laws came in to force, which not only guide the legal procedure for such deals but also protects the interest and property of the owner. This empowered the courts to take stronger action in cases of violations or breach of agreement. Law enforcement agencies have also been looped in with mandatory regulations such as verification. This has given relief and support to the owners.
The other factor is the changing profile of the tenant. A new breed of educated professionals began to migrate to cities to take up emerging job opportunities or take up residence upon job transfer. There was demand from corporates, multinationals and even students. The fear among owners began to disappear and professionalism is creeping in albeit slowly.
Benefits from rental
Rentals are beneficial in two ways. One, the income and secondly, the person who moves in, invariably takes care of the premises, thereby