The demand for rented housing properties slightly decreased due to huge inventory that is being generated by gated community projects. Earlier, the demand for rental properties is huge and however with huge supply of inventory in to the market with entry of gated communities brought adequate demand–supply ratio. Each gated community brings around 500-2,000 flats in to the market, said R Naveen Kumar, MD, easytolet.in.
However, tenants are also increasingly looking to rent the properties in gated communities even at little higher rental values. Tenants are ready to travel to far-off location for the amenities if he finds a property at almost a similar rental value. This movement has created vacancy in the flats of normal apartments and independent houses, he said.
Earlier, living in a independent house is a luxury. However, these days, tenants are sceptic to living in these houses because of the security provided (video surveillance with proper guest entry records) at the gated communities.
The landlords of standalone apartments and independent houses cannot compete with the facilities provided by the gated community, but they have to at least regularly maintain their houses to attract tenants, said Naveen.
Talking about opportunities in the market, he said, there is huge demand for bachelor accommodation with the almost 90 per cent of the landlords doubtful to rent their property for them.
However, bachelors with jobs have disposable income and don’t mind paying extra rental as they share among house mates. The major concern for the landlords to rent is the maintenance and cleaning of the property.
If landlords let their property to bachelors by proving maid services by including those costs in rentals rather than nagging them about cleaning the house, it creates win-win situation between both the players.
The landlord has to know who is his customer market the strengths of the house to him.
For instance, if a landlord has a four bed room house at a HITEC city, it is difficult to rent the house for families as the people who are working in the IT sector are individuals or nuclear families. Instead, he need to market his house for corporate as a guest house accommodation.
There are different people with different needs. There are tenants who are ready to travel to their offices from far-off locations for properties in lower rents, pollution free zone and greenery. Landlord needs to highlight these things when they are letting their property and target the relevant tenant, he said.
There is also a need of emotional connect between a landlord and tenant. If a landlord builds trust, the tenant does not get a thought to relocate as he feels it as his own house. It also reduces the iteration and vacancy rate drastically to the landlord, said Naveen.
The rental housing in the City is not effected with political agitations. There is a 5- 10 per cent hike in rental values.
However, the market have a direct relation with the job market and businesses in the City. The new companies starting off in the City will create a demand and layoffs will lead to vacancies, he added.