Renting out your property is not an easy task. In addition to that, if not handled properly, then it can invite a number of problems. There are a few important things to keep in mind if you want to avoid common problems like misuse of the premises by the tenant, non-payment of maintenance fees on time, delay in payment of rent, etc. Hence, in this article, we present the checklist of things that will help you in avoiding the trouble later.
Fixing the correct rent amount is the first and foremost step to keep in mind when you are renting out your property. Before fixing the amount, do thorough market research about the current trend. For instance, you can talk to neighbours and real estate professionals in that area. The rent and the capital value of the property are directly related. Therefore, if you are fixing a higher rent amount, then you should justify it by providing extra furnishing or premium services.
A legal document or a rent agreement binds the landlord and the tenant together. Both the parties have to follow the mutually agreed terms and conditions. When there is a dispute between the two, this agreement plays a crucial role. Hence, draft it with extreme care.
Registration of lease
It is necessary to register the lease agreement once it is ready. Only the registered lease agreements can be used as a piece of evidence in the court if there is litigation. Section 17 of the Registration Act 1908 states that registration is mandatory only in those cases where the lease period is over eleven months.
Hiring a professional
When you want to rent out your property, then you have to spread the word loud and clear. Approaching a professional is a traditional as well as the most professional way to do that. It eases the entire process by offering personalised services to the tenant as well as the landlord. As a result, the procedure becomes hassle-free. Reliable and professional assistance is available in the real estate market. One can avail it as a part of their maintenance facility.
This is an extremely crucial point to keep in mind when it comes to the background check of the tenant. Under Section 188 of the India Penal Code, not doing police verification is a punishable offense. In addition to that, the risk of renting out the property to a person with a criminal record is also lowered.
Security deposit and rent increase
Tenants have to pay a security deposit. You can adjust this amount against any rental defaults or other charges payable under the agreement. For any possible damage to the property, this amount can be asked by the landlord as a preventive charge. However, at the end of the lease, the landlord returns this deposit to the tenant. Moreover, it is stated in the document that the rent can be increased annually. It is an accepted practice.
Founded in 1987, Omaxe is one of the leading real estate developers in India with a total of 118.61 million square feet of delivered space in real estate and construction contracting. For the last 32 years, it is continuing to deliver excellent quality and real estate spaces along with guaranteeing customer satisfaction and redefining lifestyles. Contact Omaxe Group if you are considering property investment in India. It is a trusted real estate developer and it is present in a total of eight states of India including Uttar Pradesh, Madhya Pradesh, Punjab, Haryana, Uttarakhand, Rajasthan, Delhi, and Himachal Pradesh.