The concept of Service apartments is a fashion that entered the Indian market in the early 2000s. By the textbook definition, a service apartment is the type of apartment that is fully furnished with all the basic amenities. These apartments are available for the tenants in both short term and long term plan. A typical service apartment includes all the furnishing and utensils thus saving the tenants from taking the effort also, the comfort services like parking, housekeeping, etc. are included in the rent itself.
In many ways, a service apartment is equal to living in a hotel. However, the cost associated with living in a hotel is much greater than living in a service apartment also hotels are generally incapable of meeting the needs of long term tenants. Also the sq. ft. area space is much more in case of a service apartment when compared to a hotel. Finally, the privacy that you can expect with a service apartment is something you can never get with living in a hotel.
With a quick occupancy rate, service apartments are seen as one of the most profitable forms of real estate in the market. When functional in a city, which is crowded by NRIs who come to India with contractual jobs, the demand rise is manifold, making it even more profitable for the developers.
But because it is a somewhat new concept in India, developers might take some time to tap this sector fully. However, if you are planning to buy a vacant property in a city like Bangalore, which is the hub of NRIs and people migrating in and out of the city for short terms, for investment purposes, there is no reason why you cannot think about putting up your flat as a service apartment in Bangalore.
Like any form of rent, the process of putting your house as a service apartment in the IT city can be extremely difficult or extremely easy, depending on your patience level. But if done right, this source of income is generally more stable and greater as compared to other forms of leases.
Here are some points to bring you in the zone –
Being a less tapped market, the concept of service apartments is most known by the expatriates and NRIs who come to Bangalore for jobs. So in order to make your fast go out as a service apartment fast, invest in city’s CBD and SBD areas, in this case, Whitefield, Hoskote Road, Electronic City, etc. as these are the one that sees the most demand from the contractual employees’ buyer group.
Get the right tenant
Finding the tenant for a service apartment is easier as compared to find a tenant for an otherwise traditional rental apartment. You have two sure shot ways to keep the tenants coming – list your property in top property classifieds websites and contact the HR and Administration department of offices near your property and ask them to advertise your property internally (in the company).
Keep tab of Facilities
What differentiates a service apartment from any other flat on rent is the facilities that it has on offer. Be sure that your house is fully furnished with the cooking utensils ready in sets. Also, ensure that your society understands that the requirement of tenants such as car parking, lifts, and maintenance is to be taken care of like any other occupants of the society.
It cannot get any more beneficial and any less hassle free as putting your flat on rent as a service apartment, the initial cost of furnishing your house could be high but the returns are proportionally greater. It is time you see this as a viable future of your invested property in Bangalore.