A US based NRI's 2BHK in Kondapur had been vacant for seven months, losing ₹2,17,000 in rent. Probity inspected it, fixed seepage and electrical faults for ₹48,500, cleared dues, repriced it to market at ₹31,000 a month, and placed a verified tenant under a registered agreement with TDS set up, in 42 days.
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 owner, a software engineer living in the United States, bought a 2BHK apartment in Kondapur as an investment. After the first tenant left, a relative in Hyderabad listed the flat on rental portals. Seven months later it was still empty. The owner was paying society maintenance from abroad, had no clear picture of the flat's condition, and assumed the market had simply slowed.
It had not. Comparable 2BHK flats in the same society were being let within a few weeks. The problem was the flat itself and the way it was being offered.
What the inspection found
Our first step was a documented physical verification: dated photographs of every room, a video walkthrough, meter readings, and a conversation with the society office. The findings explained the vacancy.
| Finding | Effect on letting |
|---|---|
| Seepage from the common bathroom into the second bedroom wall, with peeling paint and a damp smell | Visitors walked out within minutes |
| Two dead switchboards and a tripping kitchen circuit | Raised safety doubts with families |
| Society maintenance arrears of ₹14,400 (eight months at ₹1,800) | The society would not issue move in permission |
| Electricity connection still in the builder's name, with ₹2,350 unpaid | Tenants could not get bills in a clear name |
| Listed at ₹34,000 a month | About 10% above comparable flats in the society |
| No photographs in the listing, and viewings only on weekends | Few enquiries, and slow follow up on those that came |
The plan and the spend
We sent the owner a written plan with quotes, and started only after approval. The rule was simple: fix what stops a good tenant from saying yes, and nothing more.
| Item | Amount |
|---|---|
| Bathroom waterproofing and wall treatment | ₹22,000 |
| Repainting affected rooms | ₹18,500 |
| Electrical repairs (switchboards and kitchen circuit) | ₹4,000 |
| Deep cleaning | ₹4,000 |
| Repairs subtotal | ₹48,500 |
| Society maintenance arrears | ₹14,400 |
| Electricity bill arrears | ₹2,350 |
| Total outlay | ₹65,250 |
We deliberately did not approve a full repaint, new modular fittings or appliances. Those would have added cost without changing the rent a tenant would pay for this flat.
The 42 day timeline
| Days | Action |
|---|---|
| Day 1 to 3 | Inspection, society meeting, written plan and quotes sent to the owner |
| Day 4 to 18 | Waterproofing, curing, painting, electrical work and cleaning |
| Day 6 | Society and electricity arrears paid; society confirmation obtained |
| Day 12 | Electricity title transfer filed with TGSPDCL under the owner's Power of Attorney |
| Day 19 | Relisted at ₹31,000 with professional photographs and weekday viewings |
| Day 26 to 38 | Viewings, shortlisting and background verification of two families |
| Day 40 | Agreement signed and registered, deposit received |
| Day 42 | Handover with signed inventory and dated photographs |
Why we priced lower, and why it paid
The relative had held out for ₹34,000. We priced at ₹31,000 after checking recent lettings of the same configuration in the society and nearby. The arithmetic was not close. Every month empty at the right price costs ₹31,000. Holding out for an extra ₹3,000 a month only makes sense if it does not add even one month of vacancy, and at ₹34,000 the flat had already sat empty for seven. Our rental yield data by locality is the starting point we use for this kind of pricing.
Getting the tax and paperwork right from day one
Because the owner is a non-resident, the tenant must deduct TDS on every rent payment under Section 393(2) of the Income-tax Act, 2025 (formerly Section 195). Most tenants do not know this, and most first tenancies with NRI landlords go wrong here. We built it into the agreement and the handover.
- TDS rate: 31.2% of ₹31,000 is ₹9,672 a month, so the tenant pays ₹21,328 to the owner's NRO account and deposits ₹9,672 with the government.
- Tenant's filings: the tenant obtained a TAN, deposits TDS monthly, and files the quarterly return, now Form 144 (formerly Form 27Q), then issues Form 131 certificates.
- Owner's side: the owner's CA reviewed whether a lower deduction certificate was worth applying for, given his actual tax position in India.
- Agreement: a properly drafted agreement with a TDS clause, a Power of Attorney recognition clause and NRO account details, registered as explained in our guide for landlords.
Results
| Measure | Before | After |
|---|---|---|
| Status | Vacant for seven months | Let to a verified family |
| Rent lost during vacancy (at ₹31,000) | ₹2,17,000 | Nil from day 42 |
| Monthly rent | Nil (asking ₹34,000) | ₹31,000 |
| Outlay recovered | Not applicable | ₹65,250 is about 2.1 months of gross rent |
| Society and electricity dues | In arrears, connection in builder's name | Cleared, transfer filed in owner's name |
| TDS compliance | No process | Set up in the agreement and tracked quarterly |
Lessons for NRI owners
- A long vacancy is usually a property or pricing problem, not a market problem. Get an inspection before cutting rent or blaming the market.
- Fix what blocks a yes, not everything. Seepage and safety issues lose tenants; old but clean fittings rarely do.
- Clear dues before listing. Society arrears quietly stop move ins.
- Set up TDS at the start. It is far harder to correct after a year of missed filings.
- Keep dated records. The handover photographs will decide the deposit settlement when this tenant eventually leaves.
Frequently asked questions
Why do NRI flats in Hyderabad stay vacant for months?
In our experience the common causes are visible defects such as seepage, pricing above comparable flats, unpaid society dues that block move ins, and slow or weekend only viewings. A documented inspection usually identifies which of these applies.
Should I spend money on repairs before letting my flat?
Spend on what stops a good tenant from agreeing: water damage, electrical faults, cleanliness and basic safety. Cosmetic upgrades rarely raise the rent enough to justify their cost.
How much TDS does a tenant deduct when the landlord is an NRI?
For most individual NRI landlords the effective rate is 31.2%, which is 30% plus 4% cess, deducted from every payment with no threshold under Section 393(2) of the Income-tax Act, 2025.
Can Probity manage a letting without the owner visiting India?
Yes. Inspections, repairs, society and utility work, tenant verification and registration of the agreement are handled locally, with approvals from the owner in writing and a registered Power of Attorney where signatures are needed.
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
- Income Tax Department: Form No. 144 FAQs
- TGSPDCL downloads: title transfer forms
- IGRS Telangana, Registration and Stamps Department
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.
Is your Hyderabad flat sitting empty?
Start with a documented inspection. We will tell you exactly what is stopping it from letting, and what it will cost to fix.