Managing Rental Property in India from Abroad

Remote Property Management for NRIs

Owning rental property in India while living abroad is common. Managing it effectively requires the right systems and people.

Finding a Property Manager

A local property manager charges 5-8% of monthly rent. They handle tenant screening, rent collection, maintenance coordination, and tenant disputes. For NRIs with properties in South Delhi (Vasant Vihar, Vasant Kunj), established agencies serve the diplomat and expat rental market.

Tax Compliance

Tenants are required to deduct 31.2% TDS on rent paid to NRI landlords (under Section 195). Many tenants are unaware of this. Get a tax consultant to issue a lower TDS certificate (under Section 197) based on your actual tax liability, which is usually lower than 31.2%.

Rent Collection

Rent should be deposited into your NRO account (ordinary non-resident rupee account). This makes tax filing simpler and allows repatriation of up to USD 1 million per year from this account.

Maintenance Planning

Set aside 1% of property value annually for maintenance. Schedule a property visit or have your manager do a video walkthrough every quarter. Major items (painting, waterproofing, appliance replacement) typically arise every 3-5 years.