Long - term rentals vs short - term stays: which investment strategy is better?

 Understanding the best strategy for rental investments

Investors are often big on real estate because of its potential to generate handsome rental income.  This passive income is often preferred, due to the straightforward process involved.  Once the tenant is finalised and the paperwork is completed, the homeowner typically doesn’t need to interfere with the tenant, and , it is guaranteed that a set amount will be credited to their account monthly.  However, with the emergence of short-term rentals, the concept of renting has turned on its head.  Homeowners now need to be more hands-on, but does this also increase the ROI?

“Long-term stays usually refer to renting for six months or more-sometimes even stretching into years.  Short-term stays involve renting for shorter durations, typically less than six months.

“Short-term rentals can potentially generate higher income via every stay as compared to long-term rentals.  However, occupancy rates can fluctuate seasonally, impacting overall income.  Long-term rentals offer predictable, consistent income, but the potential for higher returns is limited.

Thus, it is extremely crucial to exercise due diligence and conduct thorough research before diving into any rental investment of this nature.  The investment for both types of rentals is significant, and their returns could be determined seasonally or by their proximity to local attractions.  Therefore, to help determine the conflict between the two rental options, a real estate firm explains each rental option in detail, along with their drawbacks.

SHORT-TERM STAYS

HIGHER RETURNS WITH HIGHER EFFORT

Higher Potential Income:

A well-located apartment in Mumbai’s Bandra or Goa’s Candolim can earn two or three times more through short-term rentals compared to long-term leases, especially during peak seasons.

Flexibility:

Owners can use the property themselves when needed.  This is particularly advantageous in vacation destinations like Udaipur, Goa, Shimla or Puducherry.

 Diverse guest base:

Short-term rentals attract a mix of tourists and business travellers, reducing dependency on a single market segment.

Price adaptability:

Rates can be adjusted based on demand.  During special events that hold cultural significance to that area or the country, short-term rental prices can skyrocket.

HOWEVER, SHORT-TERM RENTALS COME WITH THEIR OWN SET OF CHALLENGES:

Higher Operational Costs:

Frequent cleaning, maintenance, and guest management increases cost.  In cities like Bengaluru, where the IT sector drives short-term corporate stays, maintaining high standards is crucial but expensive.

Seasonal Fluctuations:

Cities like Shimla or Manali see high occupancy during peak seasons but might struggle during off-seasons.

Regulatory Uncertainties:

Many Indian cities are still grappling with regulations for short-term rentals.  In Goa, for instance, there have been ongoing discussions about licensing requirements for short-term rental properties.

More hands-on management:

Short-term rentals require active management.  In a city like Chennai, where both business and leisure travellers are common, catering to diverse needs can be time-consuming.

LONG-TERM RENTALS

LONG-TERM RENTALS STABILITY AND STEADY INCOME

Steady income:

In cities like Mumbai and Delhi, where housing demand remains high, long-term rentals provide a consistent monthly income.  For instance, a two-BHK apartment in Mumbai’s prime location can yield a steady monthly rent of Rs 60,000-70,000 and sometimes even more that that depending on the location.

Lower maintenance:

With tenants typically staying for years, the property experiences less wear and tear.  This is particularly beneficial in older properties in areas like Kolkata’s Park Street or Delhi’s Connaught Place.

Easier management:

Long-term rentals require less day-to-day involvement.  An apartment in Bengaluru’s Indiranagar, for example, might only need attention during yearly maintenance or tenant changes.

Appreciation focus:

Investors can focus on long-term appreciation.  Properties in developing areas have seen significant value increases over time, alongside steady rental income.

HOWEVER, LONG TERM RENTALS ALSO HAVE DRAWBACKS:

Lower to moderate yields:

Rental yields in most Indian cities hover around one to three percent annually for residential properties, which is relatively low as compared to other investment options.  Whilst commercial properties, offer yields of around four to six percent.

Tenant risks:

Issues like non-payment or property damage can be significant.  There is also a possibility of evicting problematic tenants becoming legally complex.   

What are the legal aspects of farmland and ownership?

 Here is a look at the legalities of farmland ownership

Owing a piece of land is often seen as one of the best investments possible.  The valuation of the land continues to grow and there is always a possibility of infrastructural growth happening in and around that particular area.  If not for that, one can surely make the most of the land by using it as farmland and generating plentiful yield all year round if done right.  That being said, owning farmland is quite different from buying property or buying just a normal piece of land.  Several laws in place need to be checked for and consulted with before making the purchase.

The nature of farmlands is such that one can cultivate crops and use them for generating business.  Hence this type of land often targets investors who know agricultural land or large businesses whose backbone relies on agricultural produce.  To make sure these lands are protected, there are several laws in place that one must adhere to before investing in farmlands.

 

“The eligibility criteria for purchasing agricultural land in India vary across states, subject to specific laws and regulations.  For instance, Tamil Nadu has no restrictions, allowing anyone to buy agricultural land. The state allows a person to purchase a minimum of 59.95 acres of agricultural land.  In addition, if there has been no agricultural activity on the land in the last 10 years, it can be converted into non-agricultural land.  However, states like Karnataka, Maharashtra, and Gujarat prescribe certain limitations.  Karnataka restricts land purchase to state-based agriculturalists with an income cap of Rs 25 lakh from non-agricultural sources.  In the state of Maharashtra, and Gujarat prescribe certain limitations.  Karnataka restricts land purchase to state-based agriculturalists with an income cap of Rs 25 lakh from non-agricultural sources.  In the state of Maharashtra, only agriculturalists are allowed to purchase land with a ceiling of 54 acres.  Non-agriculturalists need to obtain permission from the district collector to purchase agricultural land.  Similarly, in the state of Odisha, permission must be obtained from a sub-collector/revenue office to buy land belonging to an SC/ST individual by a person from another caste.  Non-native buyers in the state of Himachal Pradesh u/s 118 of HP Tenancy and Land Reforms Act, 1972.

Permissions play a vital role in determining the sale of farmland to the right investor.  Different states have laws for those who can or will be allowed to purchase land in their state.  Unlike buying land normally where an investor can simply purchase land by going through a series of legal steps, in the case of farmlands, the state decides who it can allot the land based on various factors.  “In Karnataka, Tamil Nadu, Andhra Pradesh and Rajasthan there is no permission required to acquire a farmland however , the one major condition is that he/she needs to be a resident citizen of India.  In certain other states like Maharashtra only an agriculturist (either owns an agriculture land anywhere in India directly or through succession or is in the cultivation business) can buy the agriculture land.  In some states you need to be domiciled to buy the agriculture lands, so the laws around owning agricultural lands differ from state to state.  Where the buying of agricultural land is restricted, one needs to obtain permission from the local authorities mentioning the reason to buy”

These laws are in place and applicable to Indian residents who wish to buy farmland.  For NRIs there is a slightly different set of rules.  In most cases, NRIs cannot directly acquire farmland in India and that can only be passed through ancestral property.  “Non-resident Indians (NRIs), Persons of India Origin (PIOs), Overseas Citizens of India (OCIs), and foreign citizens face restrictions outlined by the Foreign Exchange Management Regulations.  These individuals cannot acquire agricultural land but can Inherit it from their ancestors.  However, such land cannot be sold or transferred to ineligible parties and must be used for agricultural purposes”.

Once all the major legalities taken care of and everything is in check, one needs to know the categories of farmlands.  As simple as it may sound, farmlands aren’t restricted to just one type.  There are several categories that farmlands are classified into and they all serve different purposes as per the need and requirement of the investor planning to buy it.

Types of farmlands as follows:

Wedlands:  Typically used for growing paddy and other water-intensive crops, these lands have high moisture content and are often located in regions with substantial rainfall.

Drylands:  Used for cultivating crops that require less water, such as pulses and millets.  These lands are more suited for regions with lower rainfall.

Plantation lands:  Dedicated to growing cash crops like tea, coffee, rubber, and spices, often found in hilly or high rainfall areas.

Horticultural lands:  Used for cultivating fruits, vegetables, and flowers, requiring specific soil and climate conditions.

Pastoral lands:  Primarily used for grazing livestock and maintaining fodder crops.

Fallow lands:  Land left uncultivated for a period to restore its fertility.

Forest lands or eco sensitive lands:  The lands which fall under the gazette notification of Eco-logical parks of India where Agricultural activities are restricted.

Once the buyer finalises the farmland to buy, the next step is to adhere to the legal aspects after checking for state laws for ownership.  The legal step forward is to ensure that all the documents and the purchase of the land go smoothly.

TITLE VERIFICATION AND ENCUMBRANCE CERTIFICATES:

The cornerstone of farmland ownership is verifying the title.  A clear title ensures that the property is free from legal disputes and encumbrances, such as liens or mortgages.  It’s recommended to track the title back at least 40 years to confirm a clean ownership history.  Encumbrance Certificates (EC) are equally important as they disclose any existing liabilities on the property, including mortgages, leases, or restrictive covenants.  This document is essential for confirming the seller’s legitimacy and ensuring no legal obstacles in transferring the property.

Property Tax Receipts and Land Measurement:

Before purchasing farmland, it’s critical to review previous property tax receipts and related bills to avoid future taxation issues. Collecting all past documents, invoices, and tax receipts ensures there are no outstanding dues on the property. A land measurement certificate, obtained from a surveyor, verifies the exact area and boundaries of the agricultural plot as stated in the title deed, ensuring the accuracy and legitimacy of the land purchase.

Essential Documents for Due Diligence: 

• Index of Land 

• Mutation Extract 

• Family Tree History 

• Patta Book 

• Khata Certificate 

• Survey Documents 

• ROR (Record Of Right) 

• Nil tenancy  

• PTCL (Prohibition of Transfer of Certain Lands Act) 

• 79A and B endorsement 

• EC and Mother Deeds

Fencing, Access Paths, and Demarcation:

Proper fencing and clear access paths are vital for securing ownership rights and protecting the property from encroachment. Investors should ensure that farmlands have well-defined boundaries and demarcations to avoid disputes and unauthorised occupation.

Avoiding Real Estate Scams:

The Indian real estate sector, including agricultural land, is prone to scams and frauds. Common warning signs include too-good-to-be-true offers, unclear ownership, and pressure to make quick decisions. Buyers should exercise caution, conduct thorough due diligence, and seek professional advice to avoid falling victim to real estate fraud.

In conclusion, before buying a farmland it is best to get informed about the local laws in place along with the state laws. Further on as things seem favourable, adhere to the laws set in place for farmlands or seek legal assistance to guide you through the process of acquiring a farmland. Farmlands despite being simple are categorised differently and one must be certain of the type of farmland they wish to invest in before making the purchase.

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மத்திய அரசின் இலவச சமையல் சிலிண்டர் எப்படி பெறுவது என்பதை பற்றித்தான் தெரிந்துக்கொள்ள போகிறோம். இந்தியாவில் வறுமைக்கோட்டுக்கு கீழ் இருக்கும் குடும்பங்களில் உள்ள பெண்களின் நலன் கருதி, பிரதம மந்திரியின் உஜ்வாலா யோஜனா திட்டத்தின் கீழ் இலவச சமையல் சிலிண்டர் வழங்கப்பட்டு வருகிறது. இந்த திட்டமானது உத்திர பிரதேசத்தில் 2016-ம் ஆண்டு மே 01-ம் தேதி மத்திய அரசால் இந்த திட்டம் கொண்டு வரப்பட்டது. அந்த வகையில் நாடு முழுவதுமாக வறுமைக் கோட்டுக்குக் கீழ் இருக்கும் குடும்பங்களுக்கு ஐந்து கோடி சமையல் சிலிண்டர் இணைப்புகள் வழங்கும் நோக்கத்தில் இத்திட்டம் செயல்பட்டு வருகிறது. சரி இப்போது இந்த திட்டத்திற்கு எப்படி விண்ணப்பிப்பது என்று விரிவாக படித்தறியலாம்..!

பிரதான் மந்திரி உஜ்வாலா யோஜனா திட்டம்

தகுதி:

மத்திய அரசின் மூலம் இலவச சிலிண்டர் வாங்குபவர்கள் இதற்கு முன் சிலிண்டர் இணைப்புகளை பெற்றிருக்க கூடாது. இந்த திட்டத்தில் விண்ணப்பிக்க போகும் விண்ணப்பதாரர்கள் கண்டிப்பாக குடியுரிமை பெற்றவர்களாக இருக்க வேண்டும்.

சான்றிதழ்:

இலவச சிலிண்டர் இணைப்பு திட்டமானது குடும்பத்தில் இருக்கும் பெண்களுடைய பெயரில் தான் சிலிண்டர் வழங்கப்படும். இலவச சிலிண்டர் திட்டத்திற்கு தேவைப்படும் ஆவணங்களாக, நகராட்சி தலைவர் அல்லது பஞ்சாயத்து தலைவரிடம் இருந்து வறுமைக்கோடு சான்றிதழ் பெற்றிருக்க வேண்டும்.

இலவச சிலிண்டர் பெறுவது எப்படி – தேவைப்படும் ஆவணம்:

மத்திய அரசின் இலவச சிலிண்டர் திட்டத்தில் பயன்பெறும் விண்ணப்பதாரர்கள் ஆதார் அட்டை அல்லது வாக்காளர் அடையாள அட்டை, குடும்ப அட்டை, குடும்பத்தில் இருக்கும் உறுப்பினர்களின் ஆதார் அட்டை, பாஸ்போர்ட் சைஸ் போட்டோ, சாதி சான்றிதழ், முகவரி ஆவணம், விண்ணப்பதாரரின் ஒப்புதல் கடிதம், ஜன் தன் வங்கிக் கணக்கு அல்லது பேங்க் பாஸ்புக் போன்றவை தேவைப்படும் ஆவணமாகும். மேலும் இதற்கான விண்ணப்பப் படிவத்தை சரியாக பூர்த்தி செய்து மேலே குறிப்பிடப்பட்ட ஆவணங்களுடன் அருகிலுள்ள கேஸ் ஏஜென்சியில் சமர்ப்பிக்க வேண்டும்.

பயன்:

இந்த பிரதான் மந்திரி உஜ்வாலா யோஜனா திட்டத்தின் கீழ் இலவச சமையல் சிலிண்டர் பெறுவதற்கு ஆதார் எண்ணுடன், மொபைல் எண் கட்டாயமாக பதிவு செய்திருக்க வேண்டும்.
விண்ணப்பதாரர் முதல் முறையாக சிலிண்டர் இணைப்பை பெறும்போது, அவற்றிற்கான பணத்தொகை விண்ணப்பதாரரின் வங்கிக் கணக்கிற்கு செலுத்தப்படும்.
அந்த பணத்தை பயன்படுத்தி மத்திய அரசின் இலவச சிலிண்டர் இணைப்பை பெற்றுக்கொள்ளலாம். இத்திட்டத்தின் கீழ் பயனடையும் விண்ணப்பதாரர்களுக்கு மாதத்திற்கு ஒரு இலவச சிலிண்டர் மட்டுமே பெற முடியும்.

வழிகாட்டி மதிப்பு நிர்ணயிக்கும் அதிகாரம்: சார்-பதிவாளர்களுக்கே மீண்டும் வழங்க முடிவு

 சென்னை: புதிதாக உருவாகும் மனைப்பிரிவுகளுக்கு வழிகாட்டி மதிப்பு நிர்ணயிக்கும் அதிகாரத்தை, சார் - பதிவாளர்களுக்கே மீண்டும் வழங்குவதற்கான பணிகளை பதிவுத் துறை துவக்கி உள்ளது.

தமிழகத்தில் அங்கீகாரமில்லாத மனைப்பிரிவுகளில், மனைகள் விற்க தடை விதிக்கப்பட்டுள்ளது. இதனால், ரியல் எஸ்டேட் நிறுவனங்கள், புதிய மனைப்பிரிவுகளுக்கு நகர் மற்றும் ஊரமைப்பு துறையின் அங்கீகாரம் பெறுகின்றன.

புகார்

அங்கீகாரம் பெற்ற பின், அந்த மனைப்பிரிவு நிலங்களுக்கு, குடியிருப்பு பகுதிக்கான புதிய வழிகாட்டி மதிப்புகளை நிர்ணயிக்க வேண்டும். சில ஆண்டுகளுக்கு முன் வரை, அந்தந்த சார் - பதிவாளர்களே இந்த மதிப்புகளை நிர்ணயித்து வந்தனர். இதில் முறைகேடுகள் நடப்பதாக எழுந்த புகார் காரணமாக, இந்த அதிகாரம் பறிக்கப்பட்டு, மாவட்ட பதிவாளரிடம் ஒப்படைக்கப்பட்டது.

மாவட்ட பதிவாளர்கள், குறிப்பிட்ட கால வரம்புக்குள் புதிய மதிப்புகளை நிர்ணயிக்க வேண்டும் என தெரிவிக்கப்பட்டது. ஆனால், புதிய மதிப்பு நிர்ணயிக்கும் பணிகளை, மிக மிக தாமதமாக மேற்கொள்வதால், வீட்டு மனைகள் விற்பனை பாதிக்கப்படுவதாக புகார்கள் எழுந்தன. இதற்கு தீர்வாக, பதிவுத் துறை புதிய முடிவு எடுத்துள்ளது.

இது குறித்து, பதிவுத் துறை அதிகாரி ஒருவர் கூறியதாவது: 

புதிய மனைப்பிரிவுகளுக்கு, சார் - பதிவாளர்கள் அனுப்பும் பரிந்துரைகள் அடிப்படையில் தான், மாவட்ட பதிவாளர்கள் மதிப்புகளை நிர்ணயிக்கின்றனர்.

இதில் பெரும்பாலான பகுதிகளில், புதிய மதிப்பு நிர்ணயிக்கும் கோப்புகளை, மாவட்ட பதிவாளர்கள் பல மாதங்கள் கிடப்பில் போடுகின்றனர். இதனால், மனைகளை விற்க முடியாமல் வர்த்தகம் பாதிக்கப்படுவதாக, பல்வேறு தரப்பில் புகார்கள் வந்தன.

அதிகாரம்

அதையடுத்து, மதிப்பு நிர்ணயிக்கும் அதிகாரத்தை, மீண்டும் சார் - பதிவாளர்களுக்கு வழங்க முடிவு செய்யப்பட்டுள்ளது.

இதே போன்று, பதிவாகும் பத்திரங்களின் விபரங்களை, வில்லங்க சான்றுக்கான அட்டவணையில் சேர்க்கும்போது ஏற்படும் பிழைகளை திருத்தவும், தற்போது மாவட்ட பதிவாளர்களுக்கே அதிகாரம் உள்ளது.

இந்த அதிகாரத்தையும் சார் - பதிவாளர்களுக்கு வழங்க முடிவு செய்யப்பட்டுள்ளது. இவ்வாறு அவர் கூறினார்.

நன்றி தினமலர் நாளிதழ்

Original parent document not necessary to transfer property, rules Madras High Court

Justices R. Subramanian and R. Sakthivel hold that even non traceable certificate from the police need not be submitted if the original document had been lost

Sub Registrars cannot refuse to register a property transfer document merely because of non production of either the original parent document of the property or a non traceable certificate from the police if the parent document had been lost, the Madras High Court has held.

A Division Bench of Justices R. Subramanian and R. Sakthivel held it would be suffice to submit certified copies of the parent document and that the Sub Registrars could always cross check the genuineness of those copies with the original records available with their office.

The judges pointed out the right to hold property was a constitutional right under Article 300A. Hence, it was a step superior than the fundamental rights because it could not be subjected to restrictions and no one could be deprived of property without a reasonable compensation.

The right to hold property also encompasses the right to deal with the property by way of sale deed, gift deed, release deed and so on. The law relating to transfer of immovable properties was governed by a substantial enactment named The Transfer of Property Act of 1882.

The fundamental principle of law relating to transfer of immovable property was caveat emptor (the principle that the buyer, and buyer alone, is responsible for checking the quality and suitability of goods before a purchase is made), the Division Bench highlighted.

Therefore, the buyers of immovable properties must be careful in not purchasing properties from persons who do not hold a proper title or those which were under encumbrance, Justice Subramaniam wrote while authoring the verdict for the Division Bench.

“Even if a person sells a property that does not belong to him, there is no provision in the Registration Act of 1908 enabling the Sub Registrar to refuse registration except Sections 22-A and 22-B introduced in 2022 by the State legislature insofar as Tamil Nadu is concerned,” the Bench added.

Sections 22-A and 22-B too do not authorise refusal of registration on the ground of non production of the original parent document. However, the Inspector General of Registration (IGR) had given such authorisation to the Sub Registrars through Rule 55-A of the Tamil Nadu Registration Rules.

“We are unable to resist observing that Rule 55-A has been stealthily introduced as a subordinate legislation only to enable Sub Registrars refuse to register instruments indiscriminately,” the Bench said and pointed out that a statutory rule could not be inconsistent with the provisions of the Act.

Though Rule 55-A provides an alternative of submitting non traceable certificates issued by the police if the original parent document had been lost, the judges said, they were conscious of the fact that in the present day scenario, hardly any certificate gets issued without paying a hefty price.

“We should also be conscious of the fact that any certificate from any government department, as of today, comes only at a price for an ordinary citizen. An elaborate procedure has also been fixed for issuance of non traceable certificate. We have come across several instances where, because of the high pricing and the complicated procedure involved in obtaining a non traceable certificate, instances of people obtaining non traceable certificate from the neighbouring States has increased,” the judges wrote.

The judgement was passed while allowing a writ appeal filed by P. Pappu whose release deed, for transferring her rights over ancestral property to her brother, was refused to be registered by the Sub Registrar at Rasipuram in Namakkal district. Her counsel N. Manokaran pointed out the appellant had, however, submitted a certified copy of the parent document issued by the same Sub Registrar’s office.

Finding force in his submissions, the judges said: “When a certified copy has been produced and it is not impossible for the Sub Registrar to have it verified with the original record that is available in his own office, insisting upon a non traceable certificate appears to be rather a wasteful exercise.”

The Bench also wrote: ‘Driving the executant of a document to obtain a non traceable certificate in case of lost document in every case, will only result in encouraging under hand dealings.”

It ultimately set aside the registration rejection order and consequently directed the Sub Registrar to register the release deed executed by the appellant without insisting upon production of the original parent document.

https://www.thehindu.com/news/national/tamil-nadu/original-parent-document-not-necessary-to-transfer-property-rules-madras-high-court/article68775029.ece

Published - October 20, 2024

Thanks: The Hindu

Virtual home tours beyond ease and convenience

 Virtual home tours beyond ease and convenience

Digital tours are also contributing to a greener planet by minimising the number of resources

Not just scouting and shortlisting, but also the preliminary checks are now being done online.  Homebuyers do not have the time to personally visit tens of properties to check if any one of them fits their vision for the new home.  Virtual tours have thus been the solution, but real estate experts have noticed how this practice is also helping with another key concern.  Experts state that virtual home tours present substantial environmental advantages that align with broader sustainability goals. 

The surge in virtual home tours post-pandemic

“During the pandemic, real estate companies adopted virtual tours to facilitate property viewings without physical contact.  This trend continued post-pandemic due to the convenience and efficiency it offers both, buyers and sellers.”

Real estate agencies quickly adapted, leveraging technology to create immersive 3D experiences and interactive floor plans with detailed visualisation.  This approach not only appeals to the tech-savvy generation but also expands market access, enabling international and long-distance buyers to view properties without the need for travel.

Potential homebuyers can now navigate through a property, analysing all details, from the comfort of their own home.  They can also view and compare multiple properties in a short period while saving commute time.  Additionally, virtual home tours also reduce the stress of scheduling and commuting.

The seller has the ease of virtual staging, a process where furniture and decor are digitally added to empty rooms, helping buyers visualise the potential of a space.  The ability to measure dimensions and view floor plans adds to the practical benefits.

“Some companies offer immersive 3D experiences, interactive floor plans, and detailed visualisations.  This approach not only appeals to the tech-savvy generation but also expands market access, enabling international and long-distance buyers to view properties without the need for travel.” 

Environmental benefits of virtual home tours 

Virtual home tours help in reducing carbon footprints in several ways: 

Reduced carbon emissions

Traditional home tours often involve extensive travel, particularly when buyers are looking at multiple properties or in different neighbourhoods. Each visit typically requires a car journey, contributing to carbon emissions. Virtual home tours eliminate the need for such travel, significantly reducing the number of car trips and carbon emissions. 

Decreased resource consumption

Conducting physical home tours consumes various resources, such as fuel for transportation and paper for brochures and floor plans. “Virtual home tours, on the other hand, are mostly digital and require minimal physical resources. This shift reduces the need for paper brochures, stationery, gifts, etc.”  

Energy efficiency

“Homes shown in traditional tours need to be well-lit and often air-conditioned to ensure a comfortable viewing experience for potential homebuyers. This in turn leads to increased energy consumption, particularly if multiple viewings are scheduled throughout the day,” COO at a real estate developing company. Virtual tours mitigate this need, as buyers can explore properties online without requiring the home to be prepared physically each time. This results in lower energy use and, consequently, a reduction in carbon emissions associated with energy production.

Waste reduction

Real estate transactions generate significant amounts of waste, from printed materials to disposable items used during open houses. Virtual home tours reduce this waste considerably by minimising the need for physical marketing materials and disposable goods. The digital nature of these tours means less waste is produced, contributing to a cleaner environment. 

Promoting sustainable practices

The adoption of virtual home tours is part of a broader trend towards digital transformation in various other sectors. By embracing these practices, the real estate sector sets a precedent for sustainability and innovation.

It encourages other sectors to consider how digital solutions can reduce environmental impact, fostering a culture of sustainability.  As technology continues to advance, the capabilities and adoption of virtual tours are likely to become more popular in real estate transactions.  This change not only enhances the buying and selling experience but also aligns with global efforts to address environmental challenges.  Through virtual home tours, the real estate sector can play a pivotal role in promoting environmental sustainability.