Tuesday, January 3, 2017

Bangalore Tenant Trap - Maintenance

There are two types of maintenance
  • Monthly
  • While vacating 

Monthly

Monthly maintenance charges will be agreed and mentioned in rental agreement. It involves Security personal's salary, common area electricity, lift maintenance, water, etc. It varies between Rs.1000/- and Rs.5000/-.

The trap is that maintenance amount also will be increased based on apartment association decision at any point of time.

If maintenance is based on shared basis then it will not be constant each month. Based on consumption of common electricity and purchasing outside water through tankers, it may vary. Especially water scarcity and power cuts will be more in summer which increase usage of gen sets and purchase of water through tankers.

Personal experience*: Association decided to complete certain civil work which builder failed before hand over the apartment building. Like adding extra rails in staircases and repairing (common) punctured solar water containers at the terrace, patching work at parking lot, etc. These are not exactly maintenance (at least in view of tenant), it is capital civil work which will long even after tenant vacates the property.

You cannot vacate the house in protest for the amount increased as the cost of relocating to another house is huge. (Writing separate post regarding that in near future). Some land lords may bear the increase until rental agreement tenure but it will be eventual anyway.

Vacating

Land lord will charge one month rent for repainting, cleaning the house after you vacate. The trap is that it will be deducted from security deposit irrespective of the house condition (even house is already neat and clean).

Even if you vacate within few months also one month rent will be deducted. In current job market and nature of IT companies labour policies, moving to another city or company is very common.

I strongly believe that it will not cost 22k to repaint a 2BHK flat. Still in our locality it is common to deduct one month rent (22k in our case).

Wear and tear

When you rent a old flat then you may end up in this particular trap. Because of salt water geyser parts will be rusted soon. Tenant cannot replace a new geyser but land lard still insists it is coming under maintenance.

Some examples (not exhausting list)

  • Fan may start making lot of noise because of wore out bearing.
  • Kitchen sink tap may be leaking (worn out spindle - please note copper parts costs significantly)
  • Cup board handles may come out (because of low quality or rough handling of previous tenant)
  • Window hooks may come out because of heavy wind (if you stay at top floors) 
  • On/Off switch may be loose (wear and tear)
  • Plug points may be loose (wear and tear)
  • etc.

Land lord may include these into your maintenance##.

* This may not be common practice but i experienced this personally.
## If you live in the same house for 10 years, then these may be true in your case. But most of the cases, IT crowd switches job every 2 years as per a survey (you don't need a survey, this is very obvious)

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