House rent shoot up in Chennai

House rent shoot up in ChennaiCHENNAI: Finding a house for rent at an affordable rate is becoming increasingly difficult in this booming metropolis with real-estate brokers ruling the roost and imposing their terms.

Full-time brokerage agencies have gained monopoly over part-time brokers in the city and its outskirts which have witnessed several Information Technology companies, industries and auto giants setting up their facilities in the last few years.

Middle class families, who find it difficult to afford even a small house within the city limits, point fingers at the brokers accusing them of earning huge profits without investment, hard work or even taxes.

Small brokers say the increasing rents are due to the emergence of full-time agencies, who are controlling house brokerage operations throughout the city. However, big agencies blame it on the IT boom and economic growth. But, no one denies that the house rents are spiralling.

“At this rate, poor and middle class families will have no place in the city anymore,” said Selvi, who is searching for a rented house for the last six months in Vadapalani area of the city. She had joined a school as a teacher here.

“My family members have gone through every street and lane in the area. They did not find a single `to let’ board, which used to be very common till five years ago.”

“Brokers are in charge of every house and they are increasing the rent by 25 to 50 per cent in addition to demanding high commission,” she lamented.

Source: Economic Times

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9 Responses to “House rent shoot up in Chennai”


  1. 1 Sridharan Jul 3rd, 2007 at 2:01 am

    Hi,

    This is very true in Chennai. What is happening in Chennai as what i assume is young profeesionals get a job in the IT or its equivalent industry. As we know the salaries are high and hence they are pressed by the income tax.

    One good option is to go in for a housing loan and get the IT releif.

    This is with one guy. Likewise there are thousands of people applying this strategy.

    Since there is a huge demand, the real estate prices are unimaginable to the common man.

    These IT people take loans for amounts like 30 to 50 lakhs and their repayments are close to 30,000 and above.

    Many people stay with their parents since they have settled years beofre and need not give rent. But they let their new homes for rent as high as possible and use this rent and advance to settle their loans. On top of it, they also keep the tenants for a year and for the new tenant the rent is increased.

    If this is going to be the scenario, people who earn more than 50,000 per month can only afford to survive in Chennai. But who is controlling these activities in the city? Is there any law for fixing the rents? i don’t think so.

    I can understand new developments in the IT and other industries can increase the demand, but the cost of living has to raise in proportion to these developments.

    Imagine a worst case of heavy recesion in the IT industry. What will happen to these heavy repayments? Who has got the purchasing power to buy these costly houses?

    there are lots of other things which we can talk about. anyway i have shared my viewpoints

    Thanks

    Sridharan

  2. 2 Ansari Aug 13th, 2007 at 11:57 am

    Brokers are ruling the City or somebody else is operating
    them. There is no control on this kind of activites in this
    Country. Our Finance minister must look at this and put some
    TAX on this kind of income, also it has be legalised and
    if any body dont want to follow they must be punished.
    People work in the corporate comapnies only have to face
    all of the Tax problems and peoples running 100% proof business.
    Rich peoples are becoming more rich and poor peoples becoming more poor now.

  3. 3 Kamal Kumaar Vaswni Feb 6th, 2008 at 8:35 pm

    After staying eight years in one house in the interior of Alwarthiru nagar, Chennai 87 Our land lord is now worring us to increase the rent, Last year we started giving him Rs. 400 extra, and this year he is demanding Rs. 500 more,
    I have crossed my 50’s and am employed in a company for a limited salary, my job as is my last for a nother two or three years, the landlord keeps threatning that he can get much more rent for the house than what we are paying etc. can any one please give me some advice as to how we can handle this situation.
    Thanks
    Kamal Kumaar Vaswani

  4. 4 Jai Feb 7th, 2008 at 3:59 pm

    Mr.Kamal

    I’m from chennai and right now, the real estate market is very tight in chennai. Check it out with ur neighbours what they are paying. If they are paying more than what u pay, sorry u need to pay more/match and better suggestion is downsizing to smaller house or moving to neighbouring suburb/ walk to bus stop for 300 to 500m (rent will be lot lesser than just outside bus stop and good for health-walking) / bicycling to train station (if u can keep ur bicycle in ur friends place) from inner areas where rent is lesser. (Or) Speak to ur landlord if he’s very understandable (i don’t think he is)

    Thanks
    Jai

  5. 5 sk Feb 16th, 2008 at 5:21 am

    the state government should take steps to help the tenants from being driven away by the greedy landlords

  6. 6 suresh kumar Mar 5th, 2008 at 3:58 am

    Its absoultely true,
    That all house owners are controlled by brokers because all house owners are willing to keep the tenant one year only.
    My owner in vannadurai for single bed room he charged 5500 300 (maintenance) initially and now demanding 7000 suddenly.They know that if i vacate new tenant will occupy by 8000 with 80000 advance.what tamilnadu govt is doing only god knows.the house is consturcted such that all electrical connection of motor and their own portion is shared to all tenants.There is no parking place.ristriction to go to terrace .always they locked.daily morning and evening gate opening and closing should be done by tenants.Lot of issues then even people want house in adyar or thiruvanmiyur or besant nagar due to presettled mind adn opportunities.Brokers are becomming lakhiers.IF there is no rent control tamil nadu govt will face lot of protest from the people.

  7. 7 SDS Apr 4th, 2008 at 1:27 am

    The State government should try to bring some rule, like rent agreement should be registered in Gov offices, greedy landlords should a least pay the IT.

  8. 8 Caleb Apr 17th, 2008 at 8:43 pm

    What is the maximum percentage of increase in rent that a landlord can impose on the present rent? is there any rule for the same?

  9. 9 Rajkumar Jun 16th, 2008 at 10:51 pm

    Its very true that house rent is at its peak today. Even I have suffered this year. We were paying Rs 3000 + Rs 250 for maintenance since August last year for our house which is located in the inskirts of Medavakkam. We have to travel atleast a km to reach Bus stop, shops, Market etc. Now I was told that I have to pay Rs 5000 as rent to our home from August 08. Can you imagine a raise of Rs 2000 for a house which is located very interior that too within a year. This is the major problem with most of the rented houses in and around Chennai.

    The real problem is nothing but brokers. The easiest Job in chennai at the moment is Real estate. One bicycle is enough, no need for any capital or even an office. No surprise the house owner is attracted for a higher price. Most of us have one question in our mind, whats the Govt’s steps to control rent in Chennai. 90% of the people dont know what Rent Control Board means. It is a hard truth that only the middle class people are the sufferers. We have to pay rents, IT for the salary, family expenses etc. But when we look at these brokers, we can see how easy is their job. They are not paying IT, they do not have license, no sealing limit of brokerage/commission etc.

    Govt has to step up and do something to check the brokers. Mr Chidambaram should know that these brokers are getting lot of money without any IT. They should bring some proper channel like the authorized agents in the registrar offices. Not everybody own a house in Chennai and majority live in rented houses. Not everybody work in IT sector and majority earn only Rs 10000-15000 per month. If this is the case soon the middle class will come under poor category.

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