Are you an NRI renting out property in India? Here is who can help to manage it; how to pay tax and remit money abroad

NRIs can legally own and rent out property in India while they are living abroad. Here's who can help to manage the house, how to receive rent, pay tax and remit money abroad. 

Non-resident Indians (NRIs) can legally own and rent out property in India, whether it is a family home they inherited, an investment flat they have purchased or a house they chose to keep after moving abroad.

Renting out such property can provide a steady income while also ensuring that it remains occupied and maintained.

However, managing a rental property from abroad can be challenging, particularly when it comes to handling tenants and repairs, collecting rent, completing documentation and complying with tax rules.

Here is what NRI property owners need to know about managing rent, getting professional assistance and repatriating rental income.

How to receive rent while living abroad?

An NRI can let out their property in India by using online rent agreements, digital tenant verification, e-stamping and a non-resident ordinary (NRO) bank account for rent collection, which can be further remitted abroad.

Tenants can transfer the rent amount through NEFT, IMPS, or UPI linked to the NRO account. Many landlords also set up automatic reminders or use a property manager to follow up on payment dates.

Funds in an NRO account are partially repatriable up to $1 million per financial year, subject to applicable conditions and payment of taxes where required. The house owner must also keep rent collection consistent and documented to make the repatriation process easier.

Many people may wonder if they can receive rent in their non-resident external (NRE) account instead as funds maintained in it can be fully repatriated outside India. However, Indian residents cannot make direct payments or deposit local funds into a NRE account.