Do you want to rent out a commercial property for ATM installation this year? While it is a fact that demand has gone up considerably for ATMs (automated teller machines) throughout the country due to urbanization and population growth, you will have to keep a few things in mind in this regard.
Know more about the process of installation
Here are a few usual processes for installing ATMs:
· You have to file your application for ATM installation to the NBFC/bank.
· You should include property information including the location, landmarks, and so on.
· The institution will examine your proposal and based on the customer footfalls and demand in the area, process your application likewise. Banks usually prefer freehold units without encumbrances/mortgages.
· If your application gets approval, you will have to submit all vital details in the form given by the financial institution.
· You will also have to provide space for the server room and enable network connectivity.
· You will have to sign the lease agreement with the bank for the rental unit.
Some other aspects that you should not forget
Here are a few other things that you should always keep in mind:
· Rentals may hover between Rs. 60-200 per sq. ft. although it may vary as per your location and many other factors. It is also subject to change based on the bank’s policies.
· First decide the model of leasing and calculate the costs while working out your rental income. You should also check the maintenance costs and security charges involved.
· White-Label ATMs are not under any bank ownership, being the property of NBFCs. They sign service-level agreements with sponsor banks and network providers.
· Brown-Label ATMs share costs or outsource operations to third parties. Service providers have ownership of ATM hardware, although the sponsor bank offers the network connectivity and cash management. The ATM machine has the sponsor bank’s logo.
· Franchise ATMs are preferred in areas with higher customer traffic.
· You will have to pay a security deposit to your bank which may range between Rs. 2-3 lakh based on the number of ATMs that are installed, the space, location, etc.
· The deposit is refunded when the lease agreement expires. For ATM franchises, there are no monthly rentals and you will have to pay for maintenance on the site which may be around Rs. 25,000-30,000. The income depends on the daily transaction count.
· For White-Label ATMs, around Rs. 15-25,000 in earnings are possible from NBFCs who are establishing machines.
· The leased property surface area should be at least 60-100 sq. ft. while the ceiling should use Class-B concrete.
· The property should have NOCs from all building residents. Network connectivity provisions should be available on the roof.
These are some vital things that you should not forget, while choosing to rent out your commercial property for ATM installation purposes.
