Of landlords, tenants and rentals
|
The rental scene in Kochi has been witnessing a fall in demand, notwithstanding the boom in the real estate sector.
|
Though the real estate sector has been witnessing a boom for some time, the situation is somewhat different when it comes to the rental scene.
Those in the rental and leasing business say that the demand for rented premises has been decreasing in Kochi. Many people who were in the business have closed down their offices, due to the fall in demand.
The trend of more and more people going in for bank loans, which comes in easy and affordable terms, and constructing their own houses, has had its impact on rental and leasing business. The number of people opting for houses on rent or lease has declined considerably.
Jomon V.J of Kochirealtors.com. says: "As loans are easy to get, people have second thoughts on going for rented buildings. They prefer to take loans and buy or construct a house."
Renting out
Flats, villas and apartments stand the best chance of being given out on rent. Independent residential building owners are renting out their first and second floors. The reasons - additional income, children moving out for higher education leaving vacant space and need for more security, especially if the landlord is often travelling.
Those who already own a house in the city rent out their houses and move on to a newly acquired flat on the city outskirts. The trend of renting a smaller house and letting out one's own house for a higher rent is also not uncommon. "Such people often prefer to move to a quiet place such as Kakkanad," says Charles, who runs CIERS Consultancy Services. The prime season for rentals is the summer holidays, when people often are transferred to other places and newcomers arrive in Kochi.
Preferred locales
Panampilly Nagar is the most preferred location, when it comes to renting a house. The north and south areas of Kochi are also preferred locales.
NRIs, while on vacation to their hometown, rent furnished houses. For them, it's a viable option. Foreigners, who return to India every few months or in a year, rent a house and pay the rent every month. They prefer to have a base here rather than come to Kerala every year and search afresh for a house on rent.
Rentals
Waterfront residential complexes offer the highest rental value. They come at anywhere between Rs.10,000 and Rs.15,000 a month. Furnished flats are also rented out for around the same tariff. "One-room premises, such as a part of a house being rented out, cost Rs.1,000 to Rs.1,500," says Mr. Jomon
Commission rates for real estate brokers are half-a-month's rent from both the landlord and the tenants. The average rent in almost all locales of the city is Rs.2,500.
"Flats in Thevara and Vytilla are often rented by organisations. They are converted and used as guesthouses," says Stanley Joseph, Proprietor of Aann's Real Estate. Waterfront villas too are preferred.
In Vytilla, a three-bedroom house could fetch up to Rs.7,000 a month, while in Kaloor, such a house could cost slightly less with a maximum of Rs.6,000 per month. Though five-bedroom houses too find takers, it is the two and three-bedroom houses that are most in demand.
Rental agreements
Agreements are often written only for 11 months after which it is renewed along with a revision in the rent. Why then, is the period restricted to 11 months? Benoy K. Kadavan, advocate of A.K. Avirah and Associates says: "There is no time-limit for a house to be given on rent. The law does not prescribe any such period. The 11 months period is being prescribed only for allowing the landlord to raise the rent after the contract period."
The present law governing rent control is the Kerala Buildings (Lease and Rent Control) Act, 1965. This law is a social welfare legislation passed to protect the tenants from the exploitation of landlords. Thus the statute favours the tenants. It provides very few grounds for eviction by the landlord. These include rent arrears, the landlord asking the tenant to vacate the premises for his own requirement, the tenant subletting the building without the consent of the landlord and the tenant using the building in such a way as to reduce its value, said Mr. Kadavan.
Says Mr. Charles, "Some landlords refuse to undertake maintenance, leading to a dispute between the landlord and the tenant. There have been many such cases."
Demand for a new legislation, which is more balanced between the landlords' and tenants' interests is then need of the hour. The present law requires a change in tune with the business trends. Mr. Kadavan says, "Certain protective measures should be provided to the tenant against the arbitrary exercise of powers by the landlord."
Common fears
The fear of being dragged to court inhibits some building owners from giving their buildings on rent.
And it is not always easy to secure building on rent. You are looked at suspiciously, especially if you do not hold a transferable Government job or are bachelors or single women. Most landlords prefer someone they are sure will move out from their premises on a short notice and will pay the rent on time. They want all these and more to fall in place. Tenants, similarly, want a landlord who would maintain the building as and when required.
RESMI JAIMON
Printer friendly
page
Send this article to Friends by
E-Mail
Property Plus
Bangalore
Chennai
Hyderabad
Kochi
Thiruvananthapuram
