If you are renting out your property, remember to market your property well, hire a broker and quote a rent in tandem with the current trend.
The real estate sector has been going through a roller coaster ride since the last four to five years. Need for transparency has become the need of the hour. With intervention of RERA, acceleration became a game changer in realty business. It is now very important for all the landlords and the tenants to know the intricacies during the renting out transaction. Renting out a property involves marketing the home, doing proper paperwork and taking accountability of the tenants. It also comes with certain challenges, comprising of searching the right tenant, safeguarding the property from misuse by tenants, keeping a check on the damages and maintenance, and making sure that there are no interruptions in rent payments. So, if you are a home owner and planning to give your property on rent, here is a checklist that will help make the process smooth for you:
Marketing the property
In today’s time, buying or renting a property is just a click away. Now with growing internet use, people make a wise move by marketing their property on various certified real estate websites. This makes many eyeballs catch your display which can get you good and genuine deals. The only thing you need to do is to create a precise profile. Uploading property details with photographs can be a perk. You could also consider a conventional way of advertising through a newspaper and/or word to mouth.
Hire a broker
You can approach the tenant directly but hiring a broker can be an added advantage. Make sure they are RERA certified to save you from any malpractices. These professionals are well-versed with market updates. They smoothen out the entire process of finding the right home. They also provide services like creating rent agreements and other paper work including tenant verification. They can also verify the details of the landlord. With a broker, the process becomes hassle-free and time saving, however, it comes with a cost.
Particulars of furnishings
It is essential that landlords should allow the tenants a personal visit to the property to show the exact condition of the rooms, kitchen, doors, windows, bathrooms, fixtures, fittings, etc. This is to avoid any sort of confusion. It would also be handy when you would want to analyse any damage done by the tenant. If the tenant wants any change in the house, make sure you discuss it before you close the deal. It is important for the landlord to inform the tenants about the bifurcation of maintenance charges, prior to renting the property.
As rental market is currently taking a high leap in real estate industry, the landlords can ask for references from the tenant, preferably from the same city where the property in question is. This is to feel comprehensively sure about your future tenant.
Fix the rent
Once a tenant finalises the house, the next thing is to fix up the rent amount. It is advisable that before you do so, check around for the current trend. Setting it higher in contradiction to what the trend is would make it challenging for you to find a tenant. If you are quoting a higher rent than the market trend, make sure you justify it by providing some additional furnishings or any other premium services including special security devices or automation.
Advance and rent increase
A security deposit of some specific amount in advance is a common feature for every agreement. A landlord is entitled to ask for this amount as a preventive charge for any damage caused on the property or in case due to some valid reason the tenant may not be able to pay the rent on time. It is also a common practice to increase the house rent annually.
Rent agreements are mandatory while giving the property on rent. Ensure that terms and conditions are clearly put across and all the papers are duly signed. Tenants should read the agreement very carefully prior to signing the documents. This document binds both the parties to rules which have been mutually agreed upon. Furthermore, the lease agreement should be read prudently by both parties and in case of any confusion it should be clarified then and there. The owner should evidently specify the lock-in period and upsurge in rent after the expiry of lease agreement. Usually, landlords renew the agreement after 11 months along with a hike in rental, but depending on the condition, it can be tailored for a long time with deposit of advance and security.
This is a very important and mandatory process to check the tenant’s background. This will lower the risk of renting the property to a person with a criminal background. As a landlord, you need to acquire the legal identification documents attached to the verification form and submit them to the nearest police station. You must not evade doing so just to avoid tax declaration.
No commercial usage
There are many cases where the tenants use their rental residential property for their commercial purpose to avoid high rents. Many of them open their small office or establish an academic center in this residential property. To avoid such a situation, it is very crucial that a landlord should make it clear in the rent agreement and give timely visits to the house for routine check.