Thiruvananthapuram: With the whims of owners determining the rent of houses, the rates have skyrocketed for residential buildings. The building owners oppose stricter rent control laws claiming that it will only make housing more expensive.
"I was shown a two-BHK house with only a two- wheeler approach road near Anandavalleswaram temple and the rent demanded was Rs 6,500 per month. The rent of a similar house with car parking is Rs 6,500 and even caution deposit is the same. The criterion to determine rent has not been fixed or institutionalised," said G. Gopikrishanan, a techie.
Several factors like the age of building, proximity to public amenities, neighbourhood, approach road and the beauty of building traditionally decide the cost of houses. However, none of these have been institutionalised in the unorganised house renting sector.
"In Chennai, fair pricing is nine per cent gross return per annum on the total cost of a building. The rent for the building will rise depending on a score card made on amenities like power back-up, basketball court etc. The rent can decrease based on scores like type of wood used for windows. Here, the rent estimation is crude and not institutionalised," complains a tenant who works at Kinfra park.
The rent in areas near Kazhakoottam has spiralled with up to 15-20 per cent increase annually in the last five years. But the rate of increase is less towards the southern parts of the city. The corporation is in the process of profiling the houses for the latest tax rates and the number of houses on rent in the city is yet to be ascertained, a corporation official said.
