R30,000 per sq ft, then the capital value is about R2.10 crore.
The 3 per cent of this value is R6.3 lakh per annum translating into a monthly rent of R52,500. The flat owner should set a target of R50,000 to R60,000 depending on other value factors.
If a building is in a prime location with good proximity, garden or parking , compound, lift, security etc and the flat is well painted, with decent furniture and fixtures, good ventilation and sanitation etc the same flat may fetch up to R80,000 per month.
The customer is ready to pay more for such flat is because one, he does not have to spend anything on amenities and secondly, he gets better life style by just paying a marginal increase. “Usually people prefer to pay more for the furnished flats instead of raw ones even if they are available at cheaper rents,” says Krishna Pande, an Mumbai-based broker who specialises in rental deals.
The services of local real estate agents are preferable to advertisements in newspapers or websites. The broker gives human face to the deal and acts as a mediator for the entire process. He gets potential customers through his database or broker’s network.
The selection is based mainly on location and rent. He will inform you of the prevailing market rates and may correct your asking price if need be. He usually charges one month rent as his brokerage. However, if the same party or licensee continues to extend the stay, the brokerage can be reduced to half of that amount.
The broker may assist you in negotiations, rent finalisation as well as deposit amount, confirming the mode and period of payment, finding the antecedents of the customer, execution of agreement, registration, and police verification. For owners with spare flats that have to be regularly rented out, having a fixed broker is usually beneficial as renewals are regular and in some cases, brokers can be appointed on monopoly basis or sole-renting arrangements. Further, brokers themselves advertise the property through newspapers and websites and their expertise would be invaluable