Things to know before opting for “Rental guarantee” schemes

The largest commercial building in Shamshabad. If you invest Rs.36 lakhs, we will pay Rs.54,000 as rent every month.

A prime commercial building in Sadashivapet. Upon investing Rs.30 lakh, you will get Rs.25,000 per month as rent.

These are the promises being made by some tricksters who are trying to deceive people to collect money, even before preparing plans for building apartments. They are bombarding the social media with attractive advertisements under one prelaunch scheme or another. They are promising lower prices, terming it as a golden opportunity for people and they are taking away the hard-earned money from people.

 

Further, another kind of scamsters also have entered the realty market. Rent guarantee in commercial complexes is being offered to buyers. Shamshabad is not yet developed and the required infrastructure to live there is also not ready. But these builders are offering to develop a world-class commercial complex in such an area. If someone invests Rs.36 lakh in it, they are offering to pay rent every month. Several commercial buildings on the main roads of the city are seen empty without tenants for the last few months. The owners of the buildings and those who invest in them are facing various difficulties as tenants are not coming in. Under these circumstances, people should not believe those promising rent every month in commercial structures somewhere in Shamshabad or Sadashivapet. Here are the few things you need to keep in mind.

• Find out first the price of the space being sold in a commercial complex – Rs.5,000, Rs.10,000, Rs.20,000 or Rs.30,000 per sq.ft
• Inquire about the price of similar property in other commercial complexes in the neighbourhood. This will give a clear idea on whether you are buying at the property for right price
• If there are no other commercial buildings in the locality, it is best not to invest there as it takes a lot of time for an area to develop
• For how many months, the rent is guaranteed
• Assume that the commercial building has been completed and you purchase some space. Unfortunately for you, no tenants came in it. Then who pays you rent? Will the developer pay the rent or asks you to wait until the tenant arrives? Is the builder assuring to pay interest against your investment for that period
• Go ahead and buy commercial property only after assessing what would happen if the developer does not get permission to build the structure. One must ascertain on the time taken to return the amount along with interest against your investment