economic times website article
Putting a house on rent is an emotional decision for many individuals. They get sick worrying about the kind of tenants they may get, and also how they would take care of the property and so on. Still, many decide to rent it out because locking up a house doesn't make any financial sense. Also, an unoccupied apartment shows more signs of decay.
According to real estate experts, such people should take a shot at leasing their property to companies. This is especially a good option for people who are living far away from their apartment or even abroad. Most multinational and large companies look for apartments to house their expatriate as well as Indian employees.
They prefer to take a house on corporate lease, especially if the employees are posted for 2-3 years' projects. A company lease accommodation (CLA) can mean less headache for the landlord, as the company is liable for any default, damage or any breach of the terms and conditions that are usually outlined in the agreement.
Individual vs corporate lease
"The most important advantage that a corporate lease offers over a personal lease is the vastly enhanced safety factor. The possibility of fraudulent activity of any kind in a corporate lease is minimal, since the corporate assumes complete responsibility for the occupant. The rent comes on time, and the owner stands a very high chance of getting another occupant from the same company immediately on the expiry of the lease period," says Om Ahuja, CEO - residential services, Jones Lang LaSalle India.
According to real estate experts, such people should take a shot at leasing their property to companies. This is especially a good option for people who are living far away from their apartment or even abroad. Most multinational and large companies look for apartments to house their expatriate as well as Indian employees.
They prefer to take a house on corporate lease, especially if the employees are posted for 2-3 years' projects. A company lease accommodation (CLA) can mean less headache for the landlord, as the company is liable for any default, damage or any breach of the terms and conditions that are usually outlined in the agreement.
Individual vs corporate lease
"The most important advantage that a corporate lease offers over a personal lease is the vastly enhanced safety factor. The possibility of fraudulent activity of any kind in a corporate lease is minimal, since the corporate assumes complete responsibility for the occupant. The rent comes on time, and the owner stands a very high chance of getting another occupant from the same company immediately on the expiry of the lease period," says Om Ahuja, CEO - residential services, Jones Lang LaSalle India.
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Corporate leases are understood to be for longer period of time, which is usually agreed upon at a flat 10% increase year on year. This, however, restricts the owner from commanding the market rent, which can be extracted in case of individual lease, since individual leases are for a period of 11- 22 months only.
"People who let out property on individual leases perceive a risk of encroachment or an overstay even after the period of expiry of the lease, which may be difficult to tackle. But with corporate leases, companies refrain from getting into disputes over their leases since they are usually conscious about their image," says Shveta Jain, director - residential service, Cushman & Wakefield - India.
"People who let out property on individual leases perceive a risk of encroachment or an overstay even after the period of expiry of the lease, which may be difficult to tackle. But with corporate leases, companies refrain from getting into disputes over their leases since they are usually conscious about their image," says Shveta Jain, director - residential service, Cushman & Wakefield - India.
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