property management

property management

A Beginner’s Guide to Property Management in India

A Beginner’s Guide to Property Management in India

Published on

Published on

October 23, 2024
October 23, 2024

words by

words by

Sunny Garg
Sunny Garg

Read time

Read time

3 Mins
3 Mins
property management
property management

This guide provides an overview of property management in India, exploring its types, responsibilities, growth factors, and emerging trends.

A Beginner’s Guide to Property Management in India

Owning property can be a great investment, but managing it? That’s where the challenge comes in. Property management involves much more than handing over keys—there are legal obligations, financial tasks, and tenant relationships to consider.

This blog will break down what property management entails and shed insights on the current landscape of property management in India.

What Is Property Management?

At its core, property management involves overseeing and managing real estate properties on behalf of the owner. This can apply to various types of properties, including residential, commercial, and industrial spaces. 

Property managers typically handle day-to-day responsibilities like maintenance, repairs, security, and the overall upkeep of the property. Their role ensures the property remains functional, safe, and appealing for tenants.

They often work for owners of investment properties, such as apartment complexes, single-family homes, condominium units, or shopping centres. In some cases, they may also be hired by real estate companies or associations to manage larger portfolios.

In short, property management is the art of balancing tenant satisfaction with maintaining and preserving the value of the property over time.

Role of a Property Manager

A property manager plays a crucial role in ensuring that a property runs smoothly while meeting the needs of both the owner and the tenants. Their primary responsibilities revolve around two key goals: 

Protect the Integrity of the Property

One of the primary responsibilities of a property manager is to maintain the property in excellent condition. This includes overseeing regular maintenance, handling repairs, and ensuring the property complies with safety regulations. This not only enhances tenant satisfaction but also helps preserve the long-term value of the property.

Generate Revenue for the Property Owner

Generating consistent revenue is another core responsibility of a property manager. This includes finding reliable tenants, collecting rent, and minimising vacancies. A well-managed property is more likely to attract and retain tenants, which leads to a healthy cash flow for the owner. 

Responsibilities of a Property Manager

Once a project wraps up, property developers are generally quick to jump to new ventures and leave the day-to-day management to dedicated property management professiinals. This helps them save time and maintain smooth operations. The responsibilities of a property manager include: 

  • Screening and qualifying tenants

  • Drafting, signing, and renewing leases on behalf of the owners

  • Managing contracts and leases

  • Advertising and marketing rental properties

  • Creating and managing budgets

  • Collecting rent

  • Scheduling repairs and regular maintenance

  • Ensuring legal compliance with landlord-tenant laws

  • Supervising property staff

  • Handling taxes and financial reporting

  • Minimising vacancies and retaining tenants

  • Coordinating move-in and move-out processes

  • Managing tenant complaints and disputes

  • Conducting property inspections

Types of Property Management

Depending on the type of property being managed, Property management comes in various forms. These include:

Residential Property Management: This involves overseeing residential properties and handling responsibilities like tenant relations, maintenance, rent collection, and leasing. It can include:

  • Single-family homes

  • Vacation rentals

  • Multifamily homes

  • Student Housing

  • Condominiums

  • Apartments

Commercial Property Management: This type focuses on managing properties used for business purposes, such as:

  • Shopping centres and malls

  • Hotels

  • Office properties 

  • Co-working spaces 

Industrial Property Management: This includes the management of industrial properties like:

  • Warehouses

  • Manufacturing and distributing facilities

  • Mills

  • Research and Development Facilities

Special-Purpose Property Management: This category includes properties designed for specific uses, such as:

  • Theatres

  • Sports Complexes

  • Community Centers

  • Senior Living Communities

  • Places of worship

  • Museums and Galleries

So, how do you decide if your property needs a manager?

Who Needs a Property Manager?

Property managers can be valuable for a wide range of property owners, including: 

  • Owners with multiple properties who need help managing the workload or lack the expertise to handle day-to-day management tasks.

  • Investors who only want to profit from rental properties without managing them directly.

  • Busy property owners who don’t have the time to oversee property maintenance and tenant issues.

  • First-time landlords who may not be familiar with all the legal and practical responsibilities.

  • Owners of high-end or luxury properties who require specialised services to meet higher standards of maintenance and tenant relations.

  • Owners of commercial properties who need assistance with managing larger spaces and multiple tenants.

  • Absentee landlords who rely on professional services to manage their properties from afar.

  • Vacation rental owners who need help with short-term rental operations and guest coordination.

  • Real estate companies or associations that oversee large property portfolios.

  • Property owners living abroad who need local expertise to manage their real estate.

In some cases, real estate brokers might also offer property management services. For example, a broker in a tourist area might help property owners by managing vacation rentals in addition to buying and selling properties. They handle everything from listing and showing the property to leasing and maintaining it for the owner.

Now, let's take a closer look at the property management scene in India.

Do Property Managers in India Need Licensing or Registration?

In India, property management does not require a specific license or formal registration. Unlike some countries where property managers must be licensed, India does not have uniform regulatory requirements for property management across all states. 

However, real estate agents and brokers who may also provide property management services are required to register with the Real Estate Regulatory Authority (RERA) under the Real Estate (Regulation and Development) Act, 2016 (RERA Act) in many states.

Although property managers themselves do not need special licensing, it's important for them to comply with relevant laws and regulations such as:

  • Rental Laws: Each state in India has its own rental laws that define landlord-tenant relationships. Property managers must have a proper understanding of these laws so that they can draft valid rental agreements and manage tenant disputes effectively.

  • Building and Safety Codes: Property managers must ensure that the building adheres to local building and safety codes. This includes following all relevant municipal regulations related to fire safety, electrical systems and overall structural integrity.

  • Registration of Agreements: Property managers must register lease or rental agreements with the local authorities. This process makes the agreement legally valid and enforceable. Failure to do so can lead to legal complications and make it difficult to resolve disputes between landlords and tenants.

  • Taxation: Income from property is taxable under Indian law. So, the property manager must ensure that all applicable property taxes, income taxes on rental income, and other related taxes are paid on time to avoid penalties and legal issues.

Growth of Property Management in India

The property management industry in India is growing rapidly, particularly in major cities like Bangalore, Mumbai, Hyderabad, and Chennai. This growth can be attributed to the increasing demand for residential and commercial spaces in these cities. High-rise apartments and gated communities are becoming more common, driving the need for property management services.

Several factors are fueling this growth:

  • Government policies and tax deductions: Favorable policies and tax benefits related to rental income make it more appealing for property owners to hire property management firms.

  • Rise of PropTech: The growth of technology-driven property management platforms, known as PropTech, is transforming the industry. Infact the property management software market in India is is anticipated to achieve a revenue of approximately US$ 248.2 million by 2030. These tools streamline everything from tenant screening to rent collection, making property management more efficient and less hands-on for owners.

  • Urban migration: Many people are moving to cities for better job opportunities. This is leading to an increase in demand for well-managed housing. Property managers are stepping in to help owners meet this growing need.

Emerging Trends in Property Management in India

Property management in India is evolving to meet the changing needs of modern living. One of the most notable trends is the rise of communal living and co-living spaces

As more people move to cities for education and job opportunities, shared living arrangements are becoming increasingly popular. These spaces are particularly appealing to young people who value flexibility and affordability.

Co-living spaces are often managed by professional property managers who take care of everything from housekeeping and maintenance to rent collection and tenant communication. These professional services lead to increased tenant satisfaction while ensuring that the owner’s property is well-maintained and efficiently run.

Managing co-living properties often involves creating a sense of community while ensuring privacy and handling the logistics of multiple short-term tenants. This requires a new level of expertise in property management to balance the needs of communal spaces with efficient operations.

Additionally, the fast-paced, busy lifestyle of the working class is driving the demand for property management services. With long work hours and limited time for household maintenance, many working professionals prefer to live in properties where a property manager takes care of the daily upkeep. This allows tenants to focus on their work and personal lives without the stress of managing a property themselves.

In summary, the rise of co-living spaces and the busy lifestyles of urban dwellers are shaping the future of property management. 

How Crib Simplifies Property Management

To meet the growing needs of modern tenants and contemporary living arrangements, you need a platform that is well-equipped to handle every kind of requirement. Crib stands out as a reliable partner in property management, offering a range of services, including: 

Finance Management: Managing finances in shared living spaces can be challenging. Crib simplifies this with easy rent collection, pro-rata calculations, and tax compliance. It accepts various payment methods and generates insightful reports, giving you a clear view of your financial health.

Tenant Management: Crib ensures a smooth experience for tenants with quick bookings and hassle-free onboarding through secure digital signing. It helps you create a sense of community for the tenants so that you can increase tenant satisfaction and retention.

Operations Management: Managing all aspects of large shared living spaces can be challenging, particularly the daily operations. Crib simplifies your day-to-day operations by automating complaint handling and issue tracking. This feature ensures that tenants' problems are resolved quickly so that the property keeps running smoothly.

Sales Management: Crib puts all property data in one place for your sales team. It tracks room occupancy, monitors vacant and occupied spaces, and provides up-to-date bed status. This helps your sales team make quick and informed sales decisions.

Safety Management: Crib incorporates Aadhaar verification during onboarding and maintains accurate records of tenant attendance. Additionally, it streamlines outpass requests. These features help you build a secure environment for all your residents.

Whether you're managing student housing or a co-living space, Crib has the tools you need. The best part? Crib is a white-label app that adapts to your brand identity. 

Connect with us on WhatsApp today, and let us show you how Crib can meet your operational needs while maintaining your unique brand presence!

Written by

Written by

Sunny Garg

Sunny Garg

I am currently building Crib, India’s No.1 Property Management App that automates transactions and communications for co-living and student housing enterprises. Feel free to connect with me at sunny@crib.in if you think we can work together!

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. Crib does not guarantee its accuracy and is not liable for any damages or inaccuracies.

I am currently building Crib, India’s No.1 Property Management App that automates transactions and communications for co-living and student housing enterprises. Feel free to connect with me at sunny@crib.in if you think we can work together!

Legal Disclaimer
The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. Crib does not guarantee its accuracy and is not liable for any damages or inaccuracies.

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