A retired couple owned a ten unit building in Madhapur with three vacant flats, ₹1,86,000 in unpaid rent and seven different agreement formats. In six months Probity standardised agreements, moved all rent to bank transfer by the 5th, settled the arrears, filled every unit, and raised monthly rent billed from ₹1,50,000 to ₹2,04,000.
About this case study: this is a composite. It combines facts from several similar Probity engagements, with names, addresses and identifying details changed to protect client privacy. Figures are representative of these engagements and are not a promise of results for any other property.
The situation
The owners, a retired couple living in Hyderabad, built a four floor building in Madhapur with six 2BHK and four 1BHK flats. For years they managed it themselves: collecting rent in cash and by assorted transfers, handling repairs as they came up, and letting flats to whoever a neighbour or broker sent. As their health and energy declined, the building drifted.
| Area | Position |
|---|---|
| Occupancy | 7 of 10 flats let (5 of 6 two bedroom, 2 of 4 one bedroom) |
| Rent billed each month | ₹1,50,000 (5 × ₹24,000 plus 2 × ₹15,000) |
| On time payment | 3 of 7 tenants paid by the due date |
| Arrears | ₹1,86,000 owed by three tenants |
| Agreements | Seven different formats, two expired, several missing basic clauses |
| Records | A notebook and bank statements; no monthly statement of who had paid |
| Maintenance | Reactive only; one vacant flat unlettable because of water damage |
The owners' brief was short: steady monthly income, no confrontations with tenants, and one clear statement every month.
Step 1: Put a structure in writing
Before touching tenants, we signed a management agreement with the owners that fixed the service standards on both sides. Three commitments mattered most, because they were exactly what had been missing:
- Rent due from tenants by the 5th of each month, by bank transfer only, into a designated collection account.
- Remittance to the owners by the 10th, by bank transfer, net of approved expenses.
- A monthly occupancy and collection statement sent with each remittance: every flat, its tenant, rent due, rent received, arrears, and expenses with bills.
Writing these down protects owners and managers alike. A manager who does not remit on time or does not report monthly is in breach, and owners can see it immediately. Our rent collection service runs on these standards.
Step 2: One standard agreement for every flat
We met each sitting tenant, explained the change of management, and moved all seven onto one standard agreement as their terms came up for renewal, starting with the two that had expired. The standard agreement covered rent, deposit, the payment date, escalation, maintenance responsibilities, notice periods, a move in inventory and the consequences of late payment. Agreements for longer terms were registered, as our landlord registration guide recommends.
Step 3: Settle the arrears without a court case
The three tenants in arrears were handled individually, with every conversation confirmed in writing.
| Tenant | Arrears | Outcome |
|---|---|---|
| Tenant A (2BHK) | ₹72,000 | Paid in full over four months alongside current rent |
| Tenant B (2BHK) | ₹69,000 | Paid in full, part from a salary advance |
| Tenant C (1BHK) | ₹45,000 | Waived in exchange for vacating within 30 days with the flat in good order |
| Total | ₹1,86,000 | ₹1,41,000 recovered, ₹45,000 waived |
Waiving ₹45,000 was the owners' decision, made on our recommendation. The alternative was a legal process that would have taken far longer and cost more in lost rent than the amount waived. Tenant C's exit followed our move out and deposit process, with a joint inspection and a signed settlement.
Step 4: Fill the vacancies with verified tenants
That left four flats to let: the three original vacancies plus Tenant C's. The water damaged flat was repaired first, using the same fix only what blocks a yes approach described in our Kondapur case study. All four were relisted with photographs at rents matched to the building's existing levels, and every applicant went through background verification before an agreement was offered. The last flat was let in month five.
Step 5: Move maintenance from reactive to planned
With income steady, the owners approved a small monthly maintenance reserve, held from collections and shown on every statement. It funds a quarterly inspection, sump and tank cleaning, pest control and a post monsoon inspection each October. Repairs above an agreed limit need the owners' written approval with a quote.
Results after six months
| Measure | At handover | Month six |
|---|---|---|
| Occupancy | 7 of 10 | 10 of 10 |
| Rent billed each month | ₹1,50,000 | ₹2,04,000 (6 × ₹24,000 plus 4 × ₹15,000) |
| Tenants paying by the due date | 3 of 7 | 9 of 10 |
| Arrears | ₹1,86,000 | Nil (₹1,41,000 recovered, ₹45,000 waived) |
| Agreement formats | 7, two expired | 1 standard format, all current |
| Owner reporting | None | Monthly statement with remittance by the 10th |
Lessons for owners of multi unit buildings
- Consistency beats toughness. One agreement, one due date and one payment method did more for collections than any confrontation.
- Put the manager's duties in writing too. Remittance dates and monthly statements are what let an owner trust a manager, and hold them to account.
- Price arrears against time. A negotiated exit can be worth more than a full claim that takes a year to recover.
- Verify every new tenant. The arrears problem began with tenants nobody had checked.
- Budget for maintenance before it becomes an emergency. One neglected leak cost this building months of rent on a single flat.
Frequently asked questions
How do you recover rent arrears from tenants in Hyderabad without going to court?
In most cases through written, individual settlements: an instalment plan alongside current rent, or a partial waiver in exchange for vacating in good order. Every agreement should be confirmed in writing, and legal notice kept as a last resort.
Should rent be collected in cash for a multi unit building?
Bank transfer only is far safer. It creates a clear record for every flat, supports tax reporting, and removes most disputes about whether rent was paid.
What should a monthly property management statement include?
For each unit: tenant name, rent due, rent received, arrears, and any expenses with bills, plus the net amount remitted to the owner and the date of remittance.
Can existing tenants be moved to a new standard agreement?
Yes, usually as each current agreement comes up for renewal. Expired agreements should be replaced first. Explaining the change in person and in writing helps tenants accept it.
Is this a real client case?
It is a composite drawn from several similar Probity engagements, with identifying details changed to protect client privacy. The figures are representative of those engagements.
Official sources checked
- IGRS Telangana, for registration of longer rental agreements
- India Code: Transfer of Property Act, 1882 and Registration Act, 1908
- Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB)
This guide is general information for property owners and is not legal, tax or financial advice. Rules change, and your facts matter. Confirm your specific situation with a Chartered Accountant or a Telangana advocate before acting.
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We set up the agreements, collections, monthly statements and maintenance plan, then run them every month.