The essential guide for first-time landlords in India
Renting out your home is a lucrative option today especially due to the high demand of property and the rise of middle aged working class. While renting out your home or a part of your home can be financially beneficial, it comes with its own set of responsibilities. As a growing trend a large number of senior citizens have been renting out their residential properties to help them financially. While renting out is a good option especially for the elderly, they are more prone to frauds with bad tenants and other troubles. Here is a checklist one must follow before renting out your apartment. The list is equally beneficial for elderly as well as first time home renters.
Fixing the Rent: Before renting out the apartment and a right calculation for the desired rent must be incorporated by the home renter. Some housing societies charge an annual fee from members who rent out their apartments while allowing the tenants to use the facilities of the housing society. In an ideal situation, the housing apartment rentals are between 2 to 3 percent of the annual capital value of the apartment. Rentals however vary from location to location, depending on the amenities attached and the location of the housing society. One can also hire the services of a broker who can help land owners get a good rental price.
Background Check: Getting a background check on the potential tenant is one of the most important ways to ensure the right tenant for your property. Some housing societies have well defined rules for tenants for example some may not allow married couples. It is imperative to keep a check on the housing society rules before finalizing one’s tenant. One can also do a quick background check with the employers of the potential tenant to get a brief overview of his or her personality traits. It is also recommended to keep a record of the various identity cards of the tenant and share with the police as mandatory is a lot of urban cities.
Follow all Legal Procedures and Paperwork: It is recommended to prepare a proper legal rent document with the aid of a professional legal expert. Police verification and registration of the rent agreement with all terms and conditions need to be signed by both parties before any possession is given. The rent document must have clearly defined roles and payment schedules for the tenant. If the tenant is to pay his or her own electricity and water bills, clear demarcation must be mentioned in the agreement to avoid any complications or misunderstanding.
Have a well Defined Vacating Period: In case of an emergency whether the landlord wants possession back before the stimulated rent agreement time frame or the tenant wants to leave, a dedicated vacating clause must be signed by both parties. The tenant and the flat owner should give each other a prior notice of three to six months depending on mutual settlement if they want to terminate the contract. Such a sub clause removes any unwarranted fears in the minds of both the tenant and the land owner.
