If you have a vacant commercial property or land and want to earn a decent rent, leasing or renting out the property to a bank is a feasible idea.
There is no need to have a big property, you can rent an area as small as 50 square feet for a bank ATM.
However, renting out a property to a bank involves a lot of work and most property owners feel it is a hassle.
There are many advantages of renting out a property to a bank like long-term lease, lucrative rents, etc.
Knowing professional tips on how to rent out a property to a bank will make the process a cakewalk and help you earn a good income.
How to rent out a commercial property to a bank
Banks have specific prerequisites to rent a property for a bank branch or ATM. Here are some of them
- The property size should be suitable for the bank requirements. Every bank has a different space requirement. The official website of the bank will contain specific information about the size requirements for the bank branch and ATM.
- The property should be located in preferably a commercial complex or a mixed-use complex.
- The property should be easily accessible and have good visibility.
- The property should be free from any legal feud.
- There should not be any pending dues for the property.
- All the property papers such as property title, allotment letter, building plan approvals, tax receipts, encumbrance certificate, etc. should be available for verification.
- The property should have all the required permission from the municipal authorities.
If your property has all the prerequisites required, you can approach the bank for renting out the property.
You have to perform some research to gather information about prospective banks that you can rent out.
Here are some ways to gather information and reach out to your prospective renters.
Look for Ads or tenders
The first step in the process is to look for the ads posted by banks.
Usually, banks post ads for vacant land or buildings for bank branches and ATMs. The advertisements or tender notices contain all the detailed information about the requirements of the bank and the process to be followed to submit the application.
You have to simply follow the process and give an application to the bank authorities.
Search the bank’s official website
You can also visit the official websites of different banks to know whether they are on the lookout for vacant land or property.
For example, if you are interested in renting your property to IDFC bank, you have to visit their official website and search if they have any notices or ads for vacant properties in your area.
If you find an ad or notice, you can make an application by filling in the necessary details.
Call the bank’s customer service
Almost every bank has a customer service number. You can call the customer service number of your preferred banks and know the eligibility criteria and the requirements to rent out your property to the bank.
The customer service representative will walk you through the process and specific requirements of the branch.
Perform market research
Alternatively, you can enquire in the nearby bank branches about their intention to open new branches.
You can also research which banks do not have their branches within a 2 km radius of your area and contact those branches with a good offer to open a branch in your locality.
Post classifieds
Post classified ads in local newspapers or online real estate portals. Most online real estate portals charge a small fee to post property ads.
You must mention the specifications such as the address of the property, the area available, which floor it is located, amenities in the building, parking facilities, etc., and your contact details such as name, address, phone number, email id, etc.
The bank authorities will go through the listing and call you for further discussions.
How to rent your residential property to a bank
Banks are also looking to rent residential properties to provide accommodation to their employees. Most banks usually prefer long-term leases for this purpose.
If you have a residential property, you can approach the nearest branch office of the bank and provide the necessary details.
If the bank finds your property fit for accommodation, they will sign a lease with the terms and conditions agreed by both parties.
How to Rent your property to a bank ATM
If you have a small space or land, renting it out for a bank ATM is a good option. Renting out for bank ATMs is a safe bet as the banks often take premises on long-term leases and there are no rent defaults by banks.
Banks need an area between 50 to 100 square feet to set up ATMs. The property should preferably be on the ground floor and must have good visibility. Here is a step-by-step process of how to rent out your premises to a bank ATM.
- File an application for ATM installation by providing details such as the complete address, locality, nearby landmarks, space availability, etc.
- The bank will go through the proposal and study the feasibility of setting up an ATM in the area depending on the demand and expected footfalls.
- If the bank deems it possible to set up an ATM, you will be asked to submit further details and property papers.
- Once all the details are provided, the bank will verify them and enter into a lease agreement with you.
ATM rent per month
The rent offered by banks for ATMs depends on a variety of factors such as the prevailing market rate in the area, valuation of the property, location of the property, average footfalls in a day, etc.
The rent usually ranges between Rs. 60 per square foot to Rs.200 per square foot.
Procedures and Process to rent out your property to a bank ATM
Here are a few procedures you must know before renting out your property for a bank ATM.
- The area of the property should be between 60 to 100 square feet.
- The ceiling of the property should be made from class B concrete.
- You should submit a NOC from all the residents of the building.
- You will also have to provide space for the server room and installation of dishes for network connectivity.
- You must ensure an uninterrupted power supply to the ATM.
- You may be required to pay a security deposit of up to 3 lakhs to the bank.
The procedures are almost the same for every bank, though there are slight differences.
The websites of individual branches are the right place to find the exact details of requirements to rent out your property for a bank branch or ATM.
Let us know a few examples to get a clear picture of how to rent your property to a bank branch or ATM.
Rent your property to HDFC bank ATM
HDFC bank requires property with 80 to 100 square feet area to set up an ATM. If you have the required area, you must register with the HDFC bank by submitting the following documents.
Documents required
You have to submit personal documents, property documents, and financial details.
Personal documents
One of the following documents for ID proof – Aadhar card, pan card, or voter ID.
One of the following documents for address proof – ration card, electricity bill
Photographs
Property documents
Complete property documents such as title, encumbrance, tax receipts, etc.
Financial documents
GST number
Bank account and passbook
The process is almost the same for renting your property to SBI bank ATM, Axis bank ATM, and other bank ATMs.
You have to register with the respective banks which want to open an ATM in your area by submitting the required documents and waiting for their approval.
Banks rent both commercial and residential properties. They rent commercial properties to open new branches, install ATMs, and open service centers, while they rent residential properties to provide accommodation to officers and employees.
One can earn regular income by renting out personal property to banks for opening bank branches or ATMs.
Though the process seems hectic, it will be a breeze if you follow the proper process and submit all the required documents.
