The NRI community happens to be the chief contributor of foreign revenue in India. They transfer money to India for their near and dear ones and investment purposes. Traditionally, NRIs have parked a great deal of income in the Indian real estate segment. This is because they want their remittance to appreciate and offer an excellent return on investment.
However, they are mostly based overseas and cannot make themselves present in India on a regular basis. This acts as a huge hindrance in managing their properties back home, be it collecting rent or protecting the same from any damage. Hence, for certain NRIs, this becomes a huge disincentive to put their money in real estate.
To tackle the problem there are certain modern-day solutions. One of them happens to be Rental Bonds, a service that aids in increasing investment in the realty domain. It can even make it convenient for investors to secure rent and upkeep their properties.
What’s Rental Bond?
A rental bond happens to be an agreement between the landlord, tenant and the surety provider. It is an institutional assurance to compensate for the losses incurred by the landlord. The rental bonds aside from assisting NRIs to deal with their properties in India, also aid in filling up the huge number of vacant residential slots. According to a reliable source, more than 11 million homes in urban parts of India are unoccupied as a result of several factors. The factors compromise the absence of rental housing policy, present legislations that are heavily unfavourable to landlords, very low rental yields etc.
So, the panacea for all the ills that dissuade people from investing in real estate could be rental bonds. The bonds assist in dealing with domestic accommodations easily and at a frugal cost, without hurting the prospects of any party, landlord or tenant. Therefore, through bonds NRIs can manage their properties back home from a foreign country with consummate ease.
Hence, it is pretty much evident that rental bonds can potentially maximise renting business in India, and minimize the large number of vacant residential abodes strewn across major Indian metropolises. Bonds also have the propensity to draw investments from NRIs into the Indian realty sector. This is a win-win situation for all, India in particular.
