As you become the proud owner of property, you need to property maintain your property so that you can get the appreciation at the time of sale and you earn recurring Income during the period you keep the property in your portfolio and pay the necessary Income Tax and State taxes like property tax .
Maintaining the flat is easier. You can appoint one of the local dealers in your area, who works for when it is to be Rented/Re Rented. He will shortlist the potential tenants for you, you can select the tenant as per your choice taking note of his salary, company he works with, consistent Income, family status etc. Once you have selected the tenant, the Dealer prepares the Lease agreement for you and forward it for your signatures and he can get it attested from Notary. In case you want the registered agreement, you have to pay the certain amount of fees based on your state and get it registered in the Local court. The fee varies is normally equivalent to 1 month Rent or a % of the yearly Rent.
Once the Tenant moves in the Flat, The Dealer will get the Police verification done. You as a owner of the Flat have to note that the maintenance charges and the Electricity bills are paid on time through the site and correspondence that you receive in your mail box from RWA / society maintenance company.
Regarding the day-to-day maintenance. the tenant will be responsible and if any structural repair is to be carried out, we suggest that you appoint a local contactor and ask him to forward the estimate and once you have approved, he can complete the work subject to satisfaction of you and tenant and you can release the payment. In case it is related to society, the RWA, maintenance company will do the repairs.
But in case of Building, Renting and maintainace is done through professional companies. These companies are small companies who normally maintains 8 to 10 such buildings. They maintain their Rent recovery staff, staff for Renting the flats in Building and routine maintain ace. They either take the building on fixed amount from you or pay % of the Rent collected, which is normally 10 % of the Rent collected.
As a NRI, we suggest that you hire a company of your locality and on Fixed rental basis, so that you get regular income and you are not bothered about the number of flats rented and you have to spend the time with these companies.
They will also take care of TDS deduction and deposit before making your Fixed monthly payments. For detailed calculation of TDS on Rent Read our Blog TDS on Rent. They collect the Rent in your name and prepare the Monthly statement and forward it you. We need to keep approximate idea of 1 month rent equivalent for Repair of the building.
For detail idea on Renting and maintenance and tax issues please contact our team for further guidance