News Point: In a housing market like India where the tenants are a sizeable lot in the metro cities, Track2Realty survey finds out reasons why they are unhappy lot.
In terms of pure economics renting out a property as against buying it may sound to be logical due to poor rental yield across India, the market reality beyond fiscal prudence is not that simple. In most of the Indian cities the tenants have to pass through a number of uncomfortable questions ranging from food habits to personal lifestyle choice before they can get a rental property for living. The process itself is very tedious and prone to leave grey zones.
No less than eight out of ten, as many as 82 per cent, have experienced apartheid and/or harassment by the landlords. A vast majority of them, 74 per cent to be precise, have gone through so much of turmoil with the rent agreement clauses that they demand a standardized rent agreement across the country, so that neither the landlord nor the tenant could arm twist each other. 70 per cent of tenants even suggest a standardized screening process to cut the ambiguity around the process of getting a house on rent.
These are the findings of a pan-India survey by Track2Realty, the real estate think-tank group. Track2Realty conducted this survey in ten cities – Delhi, Noida, Gurgaon, Mumbai, Pune, Bangalore, Hyderabad, Chennai, Kolkata and Ahmedabad. The survey was aimed at getting into the psychograph of the tenants, in terms of their choices & concerns. They were asked a set of open-ended and closed-ended questions about their experiences in the rental market.
What tenants want
82% tenants have experienced apartheid and/or harassment by the landlords
74% tenants demand a standardized rent agreement across the country
70% tenants even suggest a standardized screening process to cut the ambiguity around the process of getting a house on rent
76% wish for some legal guideline to ensure there is no interference while staying in a rented house
70% suggest there is a Tenancy Tribunal like many other countries to settle the disputes
64% tenants question why should there be the time consuming process of yearly contract renewal
78% question the rationale of mandatory yearly hike, even when the prevailing market rate is at standstill
56% tenants have faced discrimination on the basis of food habits, personal lifestyle choices, birth place etc
82% single tenants agreed to have faced humiliation
66% singles are paying more rent than the prevailing market rate to avoid the new round of uncomfortable questions of the next landlord
70% Indians demand a comprehensive rental housing policy to settle the grey zones
58% maintain that they would not mind paying a bit more if the rental housing policy covers their concerns
More than three-fourth of these tenants, 76 per cent, categorically say they wish there is some legal guideline to ensure there is no interference while staying in a rented house. 70 per cent even suggest there is a Tenancy Tribunal like many other countries to settle the disputes, if any.
“I took this rented apartment in Gurgaon and there was no mention or written clause that I can not invite my friends in the apartment to stay overnight. Later the landlord started creating trouble over this non-issue and things got so ugly that eventually I had to vacate. I feel everything can not be put into written clause and there has to be an arbitration tribunal for tenants, the way I saw this in New Zealand,” says Gaurav Kumar, a software professional.
Nearly two third, 64 per cent, tenants even question why should there be the time consuming process of yearly contract renewal. They question why can not one time contract state all the clauses for short stay and long stay. Even more number of tenants, 78 per cent, question the rationale of mandatory yearly hike, even when the prevailing market rate is at standstill.
“I took this 2BHK apartment for INR 14,000 a month on Noida Expressway. The supply soon far exceed the demand, added to the poor construction quality of the project, that made its rental value fall to INR 12,000 by next year. But still my landlord pressed for 10 per cent increase, even though I tried to reason him out. I could have also got another flat in INR 12,000 but the additional cost and hassles of shifting made me compromise. This market trend is not right,” opines Shreya Mathur, an MNC employee.
There are many others, 56 per cent, who have faced discrimination on the basis of food habits, personal lifestyle choices, birth place etc. Singles in the city are the worst to suffer this harassment and no less than 82 per cent of the single tenants agreed to have faced this humiliation. Many of them, as many as 66 per cent, are actually paying more rent than the prevailing market rate just to avoid the new round of uncomfortable questions of the next landlord.
“At times I feel I have no choice but to accept the reality of ghetto mentality. I may not like it but the prevalent landlord mindset forces even liberal people like us to look for a rented apartment where my community is dominant. I mean why should my non-vegetarian food habits or partying affect the landlord whose only concern should be rent on time,” Rajni Mishra, shares her experience in Mumbai.
70 per cent of the Indians are hence demanding a comprehensive rental housing policy to settle the grey zones in this segment. As a matter of fact, a substantial number of tenants, 58 per cent, maintain that they would not mind paying a bit more if the rental housing policy covers their concerns.
