As per my calculations, the rent applicable on the new flat would be Rs. 758
Rental yields of a residential property vary between 2.5 percent and 3.5 percent of the market value of the property. For example, if the market value of your property is Rs 30 lakh, its rental value will range between Rs 75,000 and Rs 1,05,000 and monthly values will differ from Rs 6250 to Rs 8750. However, in some cases, the valuation may differ owing to demand and supply disequilibrium. If the property is in a category that is high on demand but witnesses limited supply, or any other positive external factor comes in play, the rental rate can go as high as 3.5 percent of the property but should not exceed it. On the contrary, if the demand is low, the rental rate should be 2.5 percent of the property value.
Amenities also have significant impact on the rental value of a property. A property with wall cupboards, fans, kitchen appliances, an additional balcony or storage space will indisputably command a slightly higher rent as compared to a property of similar market value as yours and located in the same micro-market.
Under the pagdi system, the tenant has certain rights over the property but not over the land. The tenant can even sub-let the premises or sell the property, by giving a share to the owner.
Regards,
Anaita Vas
