WORK FROM HOME MODEL MAKE LANDLORDS IN CITIES FACE HUGE CRISIS: DETAILS! 

With many IT companies opting for work-from-home (WFH) amid the COVID-19 pandemic, real estate is one sector that has been badly hit. 

Due to work-from-home model, lakhs of techies have left Bengaluru to work from their hometowns or other convenient locations. This new WFH trend or model has become a bane for landlords who solely depended on the rent that they received.

According to Bangalore Mirror report, few landlords in the city are struggling to pay their equal monthly installments (EMIs) on the loans which they availed from financial institutions. Meanwhile others have either agreed to reduce the rent or put their business plans on hold.

While speaking to media house, Praneeth Puttappa, a landlord from Kudlu, who used to get Rs 20 lakh per month as rent from commercial as well as residential buildings. Now, receives Rs 12 lakh per month. There is also no guarantee that he will receive the original amount anytime soon due to the pandemic. 

Not just that, the pandemic has also forced him to put a commercial complex projects on hold until next year, Bangalore Mirror further reported. 

“The project was nearing completion but I had to postpone it due to the ongoing crisis. The deadline has to be extended till March 2021. I am currently spending Rs 1.50 lakh for four security guards and a supervisor, including a monthly charge of Rs 12,000 to the Bengaluru Electricity Supply Company,’’ Puttappa said.  

“It is not prudent to invest money on the project till the situation gets better,’’ he further added. 

Another individual identified as Y Sharada Reddy from Gupta Layout said that she used to receive Rs 1.25 lakh as rent per month. She owns 20 dwellings at Garudacharpalya near Mahadevapura from which the monthly rent is around Rs 7,000 for a 1-BHK and Rs 15,000 for 2-BHK flats. 

“I took a bank loan to construct the building. With tenants vacating the buildings, I am finding it difficult to pay the EMI. I also have to pay for my children’s school fees. I don’t know how to handle the situation,’’ she sadly said.