Sir,
There was a time in the past when house rents in Mysuru were affordable. The scenario has changed unimaginably now and it would cost anywhere between Rs. 15,000 and Rs. 20,000 to rent out a decent accommodation — what with Mysuru rates competing vigorously with Bengaluru.
Landlords would feel bad, squirm and very apologetically approach their tenants every three/four or several years to raise the rent. And when they did get the raise, it would only be marginal.
Now, to add fuel to the fire, some greedy and unkind landlords are collecting 10% increase in the rent every year. This is breaking the backs of the unfortunate tenants. 5% raise every year has become the norm in many cases, although income of the tenants remain stagnant for several years.
Tenants are also forced to vacate under some pretext or the other for the landlords to thrive in a demand-supply situation. People with not many resources can only dream of a roof over their heads and their entire life gets economically stunted paying (abnormal) rents.
We used to hear quite a bit about Rent Controller in the bygone days. Does this office still exist and is it monitoring the exploitation of the tenants by the landlords? The economic status of families here simply cannot be compared with those in Bengaluru et-al and therefore the raise in rent every year should not be more than 3% in a city like ours. Will the authorities look into this please?
– Mubasher Mirza, Bannimantap ‘C’ Layout, 25.2.2019
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This is one side of the story, Now a days, on an average 1800 RS/SQFT for construction.
For example to construct a 2 BHK house with 1200 SQ FT with all amenities it will around cost around 21,60,000, with all additional fitting like solar, underground tank, compound wall, federal approvals and connections it will shoot up to 25 lakhs.
Upon that, plot cost on an average in your area itself it is not less than 4500 RS/ SQFT in Bannimantap, so it will cost around 54,00,000 lakh.
54,00,000
25,00,000
79,00,000 in Total for 2 BHK House.
After so much investment, hectic negotiation with brokers, maintenance, can you imagine return on investment, it is merely in between 2 to 2.5 % per annum. So called wise people who are not worried about interest they just do FD in banks where they get 7 to 8% return out of that, they pay up to 3 % rent and other luxuries in rest 5%.
It is well said “Fools build house and wise live in it”
Landlord only to recover only his construction cost he has to wait for approximately close to 15 years.
Don’t forget the repair costs for Owner when tenant vacates!
Decent Housing has become unaffordable to common man, be it owning the same or bearing the high rent for it to live . Affordable housing policy by the government is loosing relevance, as the cost of sites and construction has gone to stratospheric heights. MUDA must strictly allocate site’s only for applicants who constructs and live in it. Sites allocated but house not constructed by the allottee within say 2 to 3 years must be cancelled and confiscated. Reselling of muda sites must be banned for allottee, if he unable to construct.