Thursday, February 22, 2007

Abandon All Hope Ye Who Enter The Chennai Real Estate Market

For the medieval scholars who I know frequent this blog will be happy to know that I've uncovered a missing chapter to Dante's Inferno here in Chennai. In the last couple weeks as Padma and I have been searching the city for an apartment we have come to the realization that the final stage in a soul's journey though hell can easily be accessed though any broker or classified ad in the newspaper.

Let me explain. For those of you who have only had the opportunity to find apartments in sane and honest cities in Europe or the United States, you might not be able to wrap your head around the infernal state of land lording here in Asia. And, no I'm not just talking about the silly questions that brokers and landlords ask before renting, or the way that the price fluctuates seemingly at random. That's just part for the course. The real pain comes after you've found a place you like.

Take this great two-bedroom flat we discovered in the heart of Kilpauk. It was in our price range, had lots of light, decent flooring, bathrooms galore and a functional kitchen. It was more or less perfect for what we wanted and we told the broker that we would take it. He smiled knowingly and said of course we could have it and rubbed his palms together in anticipation of his fat brokering fee. All we were going to have to do was talk to the landlord, pay him a wad of cash and move in. Or so we were told.

The only catch was that the landlord was out of the country and we would have to wait a week for him to return. So we call off the brokers we had been talking to, give up places that were equally good and waited. Until Wednesday of the next week.

At that point we meet the landlord in his office in Anna Nagar (he sells hip-replacement devices for a living). We asked him some basic questions about the place. Such as, why do we need to give a 10 month deposit? Can we paint the place? When we give him the deposit can we get a receipt for the money? They were the sorts of questions that anyone would ask who is about to part with $2500.

He was smug and business like. "If you don't want it, I can find someone else to move in no problem," was his answer to everything we said.

We left feeling unsure about whether or not we really wanted to have him as a landlord--the apartment was nice, but he certainly wasn't. But we had promised to give him a deposit of 5000 rupees to start the transaction.

Then at 9:00 AM this morning my phone rang with the broker on the other end. The apartment was mysteriously not available anymore. Apparently landlords only want tenants who have tons of money and no questions. So we spent another two hours looking at places today and nothing was any good. It looks like this may take longer than we had expected.

Only when we had that realization did it happen. The ground opened up beneath our feet and the concrete let out a poisonous burp of sulfur and tar. When we came to our senses was a dusty manuscript in Dante's own hand. It's first words?

"Abandon All Hope Ye Who Enter The Chennai Real Estate Market"

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4 Comments:

At February 22, 2007 9:03 PM, Blogger conrius said...

Focusing on Chennai.

1. Supply and Demand: IT/BPO etc. folks with tonnes of disposable income and desperate need for a roof over their heads. Most IT folk don't land a job in their hometowns, need a place to live. Bachelors with lots of money to throw around is an inviting proposition to most LL's.

2. Laws: Once a tenant gets into a house in India, it is virtually impossible to evict him. Unlike most European countries and US, where you can go to small claims court and evict a tenant within a week, the Indian legal system makes it close to impossible to evict a non-paying tenant in less than 1-2 years (Yes non-paying!). There is no way to judge the character of any person when you meet one. Hence a hefty deposit which provides one with a hedge against you not vacating/causing trouble later on.

3. Greed: Its part of our culture. Every man for himself and for himself only. While it might sound crude to put this out there, we are an unashamedly greedy lot. Not to go on a rant here, but most tragedies in Indian history could have been avoided if only we had looked out for each other. Anyways.

4. Conservative Chennai: Chennai is very conservative wrt rest of India. We still look down upon people who drink, who go out nights and most definitely partying. If you had been in Chennai say 10 years back, you would have had a tough time entertaining yourself. There were no baristas/bistros, no clubs/discos (Save the few in 5* hotels), no pubs (except for the bars operated in a gray area behind the liquor store). Not wanting to sound rude, you are a white man, a novelty not seen face to face by many Chennai folk. They will assume you have certain habits and traits.

5. Apples and Oranges: Do not lament about a 2500$ deposit. Technically speaking, real estate in Chennai city sells on par with NYC or Tokyo. If you decide to get a 2 BR apt. in NYC/Seattle city how much would it cost you? How much would the first month's security deposit and last month's rent come to? It all evens out in the end.

Unsolicited advice and info., doesn't help you any further in finding a house, but hopefully gives a different view of things.

 
At February 22, 2007 11:31 PM, Anonymous Anonymous said...

My comments:

#2 I personally know a family who was evicted less than 3 months after moving into their posh home, because the landlord decided he wanted to sell the place. This was a corporate lease with a MNC, NOT a situation in which the tenants were not paying their rent. Guess what? I was shown that VERY SAME HOUSE 6 months later - the landlord still hadn't sold it. My bet is he never intended to sell it, he just wanted to keep the fat deposit.

3. Greed. Yep.

4. I'm a white, monogamous, married woman who, because of my religous beliefs, does not drink, smoke, or party. I have two young kids. I'm about as conservative as it gets, short of being Amish. But, all the Indian people see is a big, white, walking ATM machine.

We have been to Chennai twice trying to find a home for our family. We're on our third house choice. Our realtor (unfortunately company-hired) lies to us continually, refuses to show us all the properties on the market unless I find them and force her to, and doesn't even recognize hook-ups etc. for Indian appliances, let alone western ones. I've been shown more than one house that was wiped out from the tsunami and hasn't had anything done to it yet. I've been shown many houses which had interior doors locked and "no one could find the key". One house, in Kotta Puram, had no city water (my driver found this out for me, NOT the realtor). According to my expat friends in Chennai, this is no better or worse than I can expect from other expat relocation services. Apparently, I am supposed to rent a house without even seeing all the rooms in it, let alone checking out the electric and water supply.

The landlords universally promise the moon and deliver dust. Our current landlord has just informed us that he will not sign the lease until after March 5 - for "tax reasons" (read: his astrologist probably told him not to). We chose the house and met with him on Feb 3rd. He is also insisting that we keep and pay for the cadre of servants that he employs there, who keep multiplying every time we check again (first they have one child, then two children, then there's a gardener, then a pool boy....). Our 2nd house's landlord waited until the last minute to ditch us too - after we had already bought furniture for the house! Keep in mind, they aren't even signing a lease with an individual; they are signing with a well-known international company.

I don't pretend to understand it anymore. You are right, it IS straight out of Dante's inferno.

Good luck.

 
At February 23, 2007 6:21 AM, Anonymous Anonymous said...

Good luck dealing with the backwater hole that is Chennai.A word of advice to the non Indians...take an Indian who you can trust to negotiate with the thieves!

 
At November 20, 2008 11:47 AM, Blogger Smaps said...

hey,

Just wondering scott if you ever DID find a place in Chennai. I'm an American female, about to head to Chennai for short-term work between the months of January and April. I am in need of an apartment and wouldn't mind sharing with a roommate, as my budget is quite tight. Wondering if you have any ideas! Feel free to email me, madekelin@gmail.com

Thanks!

 

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