Now, realty startups targeting NRI space

Property management firms are becoming point of contact for all services such as leasing/renting, maintenance and legal documentation

The real estate startup space is turning its attention to non-resident Indians (NRIs) to tap their growing needs for property management. One such startup PropCare aims to be a point of contact for all property related services including leasing/renting, maintenance and legal documentations at just 2 per cent of annual rental or Rs 25,000.

Currently, PropCare offers these services in Gurgaon and plans to expand it to all the major realty markets including Bengaluru, other parts of Delhi NCR, Mumbai and Pune in the first phase of growth, company's founder and CEO Amit K Lalit told Business Standard.

"The plan is to have a pan India presence for PropCare. We mainly target NRIs who have properties in India apart from those who have multiple properties across the country. We manage negotiations between tenants and landlord, renting agreements, payment of all utility bills, interiors as well as legal documentation and rent collection/deposit to client's accounts," he said.

Experts say many such companies have come up recently to target NRIs market and this space will witness action as such property management companies become a coordination platform for all their property needs back home.

PropCare is fully funded by Lalit as of now but it will look to raise funds from private equity firms and other financial institutions in the near future. It has been in the business for less than a year and has relied on word of mouth publicity and free advertising.

Apart from maintenance issues, clients are also given information on housing and landlord/tenant laws, rent value according to the prevailing market conditions and notices/legal process to deal with non-paying tenants, he said.

Overall, the housing market is going through a phase of slowdown, which has not even spared the rental market, where rents are only growing at a marginal 8-10 per cent level on an annual basis.

"This space (property management) market has huge potential and we are charging a nominal fee to give our best of our services to people who are staying away from their asset location," he said.