My friend's father (Say, Mr. X) in India had invested in a piece of land long time back. Two years back, he sold that land to a real estate builder. The agreement of the deal was the following:

"The builder shall pay Rs.25 lakhs (approx $40000) to Mr. X. In addition to this, the builder will construct 50 apartments in total on that piece of land. Out of these 50, he will give 20 to Mr. X free of cost".

The construction work will be finished soon and Mr. X will get the possession of those apartments by early next year. He doesn't want to sell them as he is not sure how to invest the amount generated from the sell. Bank deposit is not an attractive option. In addition, selling all of them will lead to huge amount of tax. The only option is to put all of them on rent. But Mr X is getting old and he is not in a position to handle the tenants on a regular basis. My friend lives outside India. So, he wants to know: "how to manage these 20 apartments?"

  • Hire someone to manage them. Don't they have property managers in India?
    – littleadv
    Commented May 13, 2016 at 7:58
  • @littleadv Property management companies is still not main stream. Quite a few are in Commercial and Industrial space. There are some companies who do Retail, but its limited to Metros. There is no regulation and hence its more like an individual contract.
    – Dheer
    Commented May 13, 2016 at 8:13
  • 4
    I don't think this question is on-topic here. This website is about personal finances and money, but this looks like far into the realm of commercial finances.
    – Philipp
    Commented May 13, 2016 at 9:17

3 Answers 3


If he can't manage, best is he sells it off. Its easier to manage cash. Not sure what tax you are talking about. He should have already paid tax on fair market value of the 20 flats. If the intention of Mr X is to gift to son by way of death, then yes the tax will be less. Else whenever Mr X sells there will be tax.

how to manage these 20 apartments?

Hire a broker. He may front run quite a few things like showing the place etc. There is a risk if he is given a free hand, he may not get good quality tenant. There are quite a few shark brokers [its unregulated] who may arm twist seeing the opportunity of an old man with 20 flats.

See if you can do long term lease with companies looking for guest house etc, or certain companies who run guest house. They would like the scale, generally 3-5 years contracts are done. The rent is good and overall less hassle. The risk is most would ask to invest more in furnishing and contracts can be terminated in months notice.

If the property is in large metro [Delhi/Bangalore/Chennai/etc] These places have good property management companies. Ensure that you have independent lawyer; there are certain aspects of law that may need to be studied.


I have no idea about India, but in many countries there are companies that specialize in property management. This means they will take on the business of maintaining the properties, finding tenants, doing paperwork and background checks, collecting rents and evicting tenants if necessary. Obviously for this they require a fee, but essentially the owner gets to sit back and do nothing except collect a cheque every month. In my country some real estate agents are in this business as well, though for 20 apartments I would be looking for a specialized firm.


There are many property management companies are available in India. You can easily find trusted companies just searching on the google. They manage all these things legally. You just try this

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