Chennai House Rental due for further hike

Chennai residents occupying rental houses may get ready for further hike in rent due to the recent announcement by State Government of Tamilnadu to increase the property tax with effect from April 2008. The proposed increase would be in the range of 25% for residential properties, 100% for Industrial establishments and 150% for commercial buildings. The GO has provided detailed guidelines for the valuation of the properties and included even the vacant land properties in the revision. The revision is applicable to entire Tamilnadu with valuation guidelines as applicable to respective region and type of property. The entire process is planned get completed by June 2008.
The bottom line is that every individual house owner, business owner and tenant should realign their budget to meet this additional expense from April 2008 onwards.

Chennai House Rentals Skyrocketed !

"Where are you working" is the first question you will have to answer to the house owner if you are looking for rental house in Chennai. Land lords prefer to let out their properties only to IT professionals who can fork out a big sum as monthly rent as they earn bulk pay packages. In these days house owners do not bother to rent out their properties to bachelors who are IT professionals. In cities like Chennai having conservative background, it is so surprising to see a batch of bachelors living in residential apartments. The reason is house owners can get more rent from bachelor occupants than families. As these guys share and pay the rent, each one does not bother to pay upto Rs.2500/- for a 2BHK house that can be comfortably occupied by four. The house owner gets a lump sum of Rs.10000/- per month against Rs.6000/- or 7000/- that he might get if he lents out the flat for a family.

An year ago, a 2BHK house was available for rent at Rs.4000/- per month. Now this standard has sunstantially risen to Rs.6000/- levels. Interestingly we are not able to see any "Tolet" board in the city as the houses getting vacated are immediatly occupied by the next tenant.

The surprise is not over. Get ready to experience the next shock if you are looking for residential property for rent in Chennai. While house owners hike the rent almost double that what it was an year ago, they are not ready to take anything less than 10 months rent as advance. An advance of upto Rs.1.00 lakh is a dream sum for middle class families who are not part of IT glory in the city. Worst scenario is that house owners asking such middle class families to vacate to replace them with IT professionals.

While common people like us do not have any say on such inequalities, law should be made enforceable against such undue demands made by house owners. Let's wait and see who is going to bell the cat !