Non-Resident Landlord Guide: Renting Out Indian Property from Abroad

If you own a flat or house in India but live overseas, you’re a non‑resident landlord (NRI). It sounds tricky, but the process is pretty straightforward once you know the basics. Below you’ll find the must‑do steps, common pitfalls, and simple tools that keep rent coming in without you chasing every payment.

Legal Requirements for NRI Landlords

First thing – you need a valid NRI status on paper. That means a passport with an overseas address and a PAN card. Most banks and property registries ask for a PAN to link any rental income to your tax filings.

Next, register your property under the Reserve Bank of India (RBI) Liberalised Remittance Scheme (LRS) if you plan to receive rent in foreign currency. If you keep the rent in Indian rupees, open an NRE/NRO account. An NRE account lets you repatriate money tax‑free, while an NRO account is for Indian‑sourced income and has a 30% tax deduction at source.

Don’t forget the local municipal taxes and water/electricity bills. Some states require a "No Objection Certificate" (NOC) from the original buyer if the property was purchased before 2010. A quick chat with the local sub‑registrar clears that up.

Practical Tips to Manage Your Rental from Abroad

Hiring a reliable property manager is worth the fee. Look for agencies with good reviews on Google or local Facebook groups. A solid manager handles tenant vetting, rent collection, and maintenance calls – you just get a monthly statement.

If you prefer a DIY approach, use online portals like 99acres or Magicbricks to list your property. They let you set up automatic rent reminders and accept payments through UPI or net banking. Make sure the lease agreement mentions the rent amount, due date, and penalty for late payment.

Tax time can be confusing for NRIs. You’re required to file an Indian income tax return if you earn rent, even if the money stays in an NRE account. Claim deductions for municipal tax, property insurance, and standard 30% depreciation on the building value. Many NRIs use a chartered accountant in India to file the return and avoid penalties.

Keep a digital folder with all documents – title deed, rental agreement, PAN, and bank statements. Cloud storage (Google Drive, Dropbox) makes sharing files with your accountant or manager a breeze.

Finally, stay on top of RBI rules about repatriation. You can move up to $1 million per financial year from an NRO account after paying the applicable tax. Plan your transfers early to avoid a rush at the end of the year.

Being a non‑resident landlord doesn’t have to be a headache. Follow the legal steps, pick a trustworthy manager, and automate payments. With those basics in place, you’ll see rent hit your account while you focus on life abroad.