Chennai: Tough to come by tenants, most posh empty with ECR

Poor demand from expats and a general decline in real estate demand resulting from the COVID-19 outbreak have affected the market for the city's posh villas, most notably along the East Coast Road (ECR).

People invested in the villa mainly to cater to expats working in multinational companies in and around Chennai. As most expats have either left the country or moved to core areas of the city, the badge owners are now struggling to find tenants. As a result, a good number of villas are empty.

This has forced real estate developers to stop new projects as buyers have also become a difficult task. Most of the buyers were NRIs, Realtors.

The premium villa segment, which reached great heights in 2012, is losing its luster without any allowances being cut by expats and companies. According to estimates by real estate agents dealing with rentals for foreigners, the population that comes with ECR has fallen from 2,500 to 500 in four years.

Currently, about 60% of the 3,000 villas between Nilkarai and Uthandi on the ECR are vacant. The rent for properties with elaborate lawns and swimming pools previously ranged from Rs 1.2 lakh to Rs 2.5 lakh per month. Although some inquiries are being made about the demand from the residents of the city to relocate these posh properties, the deals are yet to take place as people are not ready to take up houses for such high rents. Owners do not want to reduce rent because the returns do not justify the investment they make and prefer to deal with a company as it did with expats rather than individuals.

In addition, many landlords prefer expats because there is no risk in vacating tenants and uninterrupted rents.

Mohan Kartha, a real estate agent who has been working with Accent Rentals for a decade, said that the villa market has now become a tenant market. Now, they are ready to revise their rent by 50%, but cannot find expats. Foreigners visiting the city earlier this year are being accommodated in a cheap rented apartment in core Chennai.

Srinivas Anikipatti, Senior Director - Tamil Nadu and Kerala, Knight Frank India said that the current status of ECR ​​has prevented a major developer from starting a villa project of 400 plots at Kovalam.

Bachelor's Faced Challenges While Looking to Rent a Flat

For most of us, bachelorhood is probably the best phase of life. Ultimately, we are free from major responsibilities. In addition, we get freedom to spend our time and money. But there are many challenges in the lives of single people. While there are hundreds of apartments available for rent in every city of India, finding suitable accommodation is one of the most difficult parts of living as a graduate.

Many landlords in India feel that singles have a tendency to remain unwell and rent a flat for them can be detrimental to property. In addition, there is a common bias about landlords that single men and women have a tendency to booze, party, and listen to loud music, which in turn creates a problem for others in society.

1) Higher rent

While the rent of a flat should be the same for a family or graduate, the fact is that a graduate has to pay more rent. Landlords feel that if they are renting their house to a single man / woman, they are allowing them to misuse their premises. Thus, they charge a higher amount to meet the maintenance fee. Another reason that makes landlords more expensive is that graduates change their housing more often. Therefore, they have to find a new tenant every time.

2) Huge deposits

The fact that unmarried people change their accommodation very often is like a nightmare for landlords. Thus, they want them to pay a large deposit for their house. By keeping a security deposit with them, the landlord ensures that tenants will not leave their flat without serving notice period.

3) Restriction on food habits

Many times, single occupants fail to find a flat due to following a specific eating habit. While this sounds ridiculous, it is true that landlords question their family background, race, and many frivolous questions about whether they eat non-vegetarian food, smoke or drink. While many landowners avoid renting non-vegetarian people, another broad-minded people tell them not to use the kitchen for cooking.

4) Enquiry

If you are a single man or woman, landlords can ask you hundreds of questions about their personal lives to ensure that you are fit to live in their home. The many questions that a landlord may ask you can include whether you have a boyfriend or girlfriend, will you bring your friends home often, etc. The landlord may be prohibited from being a guest, listening to music, or coming to the flat at the time of mugging.

5) Deep-rooted biased

If you are looking for rented accommodation, then you should work on your looks. Landlords can judge you for tattoos, ripped jeans, very short hair, spikes and other fashion trends. You should look well cultured and cultured.

Today, single rent hunting games are being lost due to the conservative vision of the landlords. So, if you are looking for a single male / female flat, make sure that you be patient while searching for your accommodation. Alternatively, you can take help from a real estate company that will offer stylish, serviced and well maintained flats for a single man / woman.

Do you know how to negotiate your rent as Tenant

It can be difficult to find a perfect flat in any city. And, even if you find a home that suits your needs, a high rent is something that can hold you back. But most people have no idea that the rent can be reduced. After all, leasing a property is a business for the landlord. And, he / she often quote a higher price because there is a common belief that the tenant will negotiate the rent below.

In our opinion, it is worth negotiating and getting the property at the best rental price. By saving on a small percentage of rent, you can save thousands of rupees a year. This will open many opportunities for you and your family.

If this is the first time that you are negotiating a rent, you may be a little nervous about being bothered for rent. So, to help you in this endeavor, here we have shared some useful tips.

How to Negotiate Rent as a New Tenant

When you go in for a home inspection, do not give immediate satisfactory comment, even if the property is like. It is better that you take a family member with you while going for home inspection. And, instead of saying what you like about the house, try to find some defect in the property and talk to your partner about it. This will make the landlord feel that he should reduce the rent.

If you think about understanding your situation, the landlord will deduct the rent himself, it will never happen again. Therefore, you have to start a conversation. Once you start it, don't be too stiff. Let the other person feel that he or she is also winning.

Also, think about what your landlord will cost you in return for a lower rent offer. You should give him some attractive offers, how good you are as a tenant. For example, you can assure that you will keep the house clean and well. Also, you can tell him that you will pay the rent on time.

How to Negotiate Rent as an Existing Tenant

After the expiry of the 11-month lease period, the rent of the house can increase by 10 percent as discussed in the rental agreement. This can be a major reason that you are changing homes every year. But if you are not comfortable with the rental increase, it is better to discuss the issue with the landlord.

By now, you can already create the impression of being a good tenant. Therefore, the landlord will definitely want you to continue living in the house.

Before negotiating rent with your landlord, check the rent of comparable apartments in your area. If you find that other flats in your area are available at a lower price, start making a list of examples. The more data you have, the better. But if you are already paying less than the standard rate for your flat, then it may not take much luck to negotiate.

Ideally, you should negotiate before your current lease expires. Make sure your landlord doesn't understand that you ran to find a place. In addition, it is difficult to say no to someone sitting on the phone with a person, because talk to him in person.

Important- Negotiation can be difficult, especially when you have no prior experience in bargaining. Just be confident in your expectations and be realistic with your expectations. Also, maintain a polite tone and respect your landlord during the entire process.

Should know about payment of guest accommodation agreement

Paying guest accommodation is becoming a preferred option among students and young employees. Staying away from his hometown, a Paying guest provides a homey atmosphere to flourish. Students look for excellent facilities, good food, high security and many other facilities when choosing paying guest accommodation in various cities, but they often ignore the importance of signing a Paying Guest Accommodation Agreement with the landlord. By doing this, they create sufficient scope to pay huge deposits and to rent for various facilities. In addition, they may end up in a variety of landlord-tenant conflicts, with no valid way of proving their point. Before digging deeper on the importance of a paying guest housing agreement, let us understand the important difference between a paying guest and a tenant.

Paying Guest vs Tenant

As a tenant one gets a separate flat or a different part of the rented house. And, the landlord is not allowed to enter that premises, without the permission of the tenant. On the other hand, a paying guest resides within the landlord's premises and can share many common facilities with him. Now, as the paying guest is not a tenant, he / she cannot enjoy all the privileges that have been given to a tenant under the law. But the government has provided special provisions for paying guests.

The Urban Development Department has come forward to regulate the functioning of payment of guest accommodation across the state, making their registration with the designated officer mandatory. In addition to determining registration with fees, the rules also specify the number of guests who can stay at a Paying Guest. In addition, the law also makes it mandatory for a landlord to sign a paying guest agreement.

Benefits of signing a Paying GuestAgreement

Once you have selected a Paying Guest, the next thing you need to do is a Paying Guest Agreement with the landlord. It may be possible that your landlord may not be convinced about entering into a legal agreement. If this is the case, you should convince them of the benefits of signing this agreement. A well prepared Paying Guest settlement protects both the owner and the guest paying against future legal battles. It also ensures that either party does not deviate from the rules that were previously agreed upon.

The Paying Guest Agreement also serves as proof of local address for the paying guest. Also, it will provide proof of the rent you are paying to the landlord and the facilities he is obliged to provide to you.

How to sign a Paying Guest Agreement?

A paying guest agreement must be documented on stamp paper. As long as the agreement is signed on the stamp paper, it does not need to be notarized. Remember that if there is no agreement on the stamp paper, it cannot be used as a document of proof in the courts in case of disputes.

The agreement must contain the name and permanent address of both the landlord and the paying guest. It should be signed by both the parties and two witnesses.

Also, the agreement should provide detailed information about facilities, rent, security deposit and the code of conduct expected from both parties.

Since the Paying Guest Agreementis a license to live and use the premises only, it can be made for 1 year, 1 month, 6 months or any period.

Simple Tips to Buy Earthquake Proof Flat

Earthquakes are considered to be the most dangerous natural disaster that causes mass destruction. In the past, we have seen many countries committing suicide due to this natural disaster as a massive death as well as mass destruction of properties. To protect your family from such devastating situations, you should buy an earthquake resistant apartment or house.

You will be surprised to know that earthquakes are the most vulnerable buildings in our country. In December 2014, the Supreme Court of India passed clear instructions on earthquake safety through a PIL. It states that all multi-storied buildings over five storey's should have an engraved metal plate mentioning the building's anti-earthquake range. But despite this, real estate developers have failed to maintain a high level of transparency in this regard.

Therefore, if you want to buy earthquake-resistant flats, you need to be cautious. In this regard, here, we have shared some useful tips.

Check the location - About 54 percent of the land in India is at high risk of earthquake. The National Center for Seismology has divided the entire country into five zones, namely, zones 1, 2, 3, 4, and 5. While Zone 5 areas are susceptible to high-intensity earthquakes, areas under Zone 1 are the safest. The entire northeastern region, the Himalayan region and the eastern and western parts of India are located in a high seismic zone. Therefore, if you live in these areas, make sure that your house or apartment is designed to withstand earthquakes with a minimum force of 7.

Inspect the structure of the house- Despite the strict provisions by the government for the construction of earthquake resistant houses; most buildings in India do not follow the prescribed techniques for earthquake resistant construction. To find out if your house is earthquake resistant, it is best to hire a civil engineer.

Look for an earthquake-resistant foundation - An anti-earthquake house is one that has a solid foundation. Ideally, the foundation of the building should be raised above the earth to resist ground forces. The foundation must include a bolt. And, the foundation should be built on a flexible pad made of steel, rubber and lead. This ensures that during an earthquake, isolators vibrate while the structure remains stable.

Find out if the house is made of earthquake-resistant material or not — usually houses are made of stacked bricks that are laid with mortar. But such construction does not ensure earthquake protection. Civil engineering experts suggest that the most dangerous structures are constructions with concrete blocks or unconfined bricks. Ideally, if your area is prone to earthquakes, the walls of your house should be made of concrete and wood. And, if your area is at high risk of earthquake, make sure the walls of your future house are reinforced through additional concrete or steel slabs.