Benefits Of Owning A Service Apartment For NRIs
With India becoming a global business hub, the number of business travelers has been on an upswing in recent years. The influx of corporate, business travelers and on site skilled workers that visit the country for a limited period are often accommodated in private service apartments by their respective companies. This change from staying in hotels for a small or medium term to fully-furnished service apartments with equal comforts has helped companies save in accommodation expenses. Simultaneously, it offers the business traveler a chance to live comfortably with a secure personal space furnished with all modern day comforts. A large number of apartment owners are beginning to offer their apartments as potential service apartments for such business travelers. The rentals provided by business travelers are higher than average domestic rentals although the onus of furnishing the serviced apartment with all modern day features and comforts lie with the apartment owners.
Serviced Apartments – A perfect Option for NRIs
A large number of NRIs, investing in Indian real estate, can be the biggest beneficiaries of the growing serviced apartment market in the country. Most NRIs prefer to have their own apartment in India for personal use whenever they travel back to the country of their birth. Since serviced apartments are offered to corporate and business travelers for a short period of time ranging from a few weeks to a couple of months, they are perfectly suitable for NRI apartment owners.
Apartment owners can earn decent rentals from serviced apartments while they are leased out and it can be used for self-occupancy as well, during their short tenure in India during vacations. Since service apartments are used by various multinational companies and business houses for their guests and visitors, it removes any chance of dispute or forceful possession which can happen in case of domestic rentals, when you want to use it for your personal purposes. With every rental inked in black and white between the corporate house and apartment owner, chances of fraud are almost negligible making it ideal for NRI apartment owners.
Things to Know before Offering a Serviced Apartment
Before one may think that walking the service apartment route is a better option than domestic rentals, one must be aware of a few requirements for serviced apartments. Unlike other rentals, serviced apartments need to be fully furnished and well equipped with all modern day comforts like furniture, electronic gadgets, telephone and Internet, communication facilities and latest security measures. Basic facilities expected by most corporate clients include air conditioning, refrigeration, washing machine, furnished kitchen and television sets to name a few. The service structure and comfort level of a serviced apartment must be at par with a three or four star hotel accommodation. NRIs willing to offer their apartment as service apartments to various corporate and business houses must make sure that they travel to India periodically or have a person designated to take care of any repairs or renovation work during the rental period.
Business Potential for Service Apartments
With business houses and companies opting to locate to smaller cities and towns in the country, the need for service apartments is likely to witness a massive upside in tier 2 and tier 3 cities. With real estate companies also focusing their attention on smaller cities, NRI investors in real estate can look at a serious service apartment accommodation facility as part of their rental plans for the apartment.
