Property is a long-term investment for every individual. It is established by investing lifetime savings too. We build properties to generate to earn a certain amount of side income. Renting is a great option to opt for as a side earning through your properties i.e. plot, shop, flat, independent house, and others.
Giving your thing on rent to some stranger for a period of time is not an easy task. It will become a risky task and a headache if it is not done properly. Doing it properly means handling it wisely so that you should not face any hassles later on.
Renting a property is not a simple task. It is crucial work indeed, finding your ideal tenant is yet difficult. If it is not done properly then you can face issues later on. So here we try to make the work less complicated for all landlords by providing the DO’S and DON’T’S list before giving property on rent.
The DO’S
- ADVERTISEMENT– Without advertising nobody would ever know about your rental property. It is the most important step to get your tenants.
In this technical era, it is very convenient to approach brokers or clients directly. The number of websites available like magicbricks.com, 99acres.com, etc. Using a transparent platform like here in Rentberry may give you a fully digital, long-term rental experience; in this case, it will make the process faster, easier, and safer for both renters and landlords, thanks to several unique features.You can easily upload your property details like photos, location, and amenities if possible. If anyone will be interested in your property can easily contact you till then you have to wait.
But if you are not friendly with the technology you can advertise in newspapers this may charge you small fees or you can contact to your nearby broker of the area to get interested clients to you.
- FIX THE RENT – Fixing the amount of rent for your property is an initial step. Rent for commercial properties is high as compared to residential properties in the market. The landlord should decide the correct amount for rent. It is essential that you should fix your rent according to the market; you cannot charge high rent as per your needs. For this, you can research the current rate in the market for both commercial and residential properties. You can check nearby property rates in your area to get more information about the rates.
Rent can differ according to the size (per square feet or meter or gaj), location, facilities, amenities like swimming pool, parking, water supply, gym, etc and rental property is furnished, unfurnished, semi–furnished, a number of rooms available, etc.
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- PREPARATION OF RENTAL AGREEMENT—A rent agreement is a legal document, a compulsory step that should be followed by every property owner before giving it for rent.
It is a legal document that binds both tenant and landlord with legal and agreed terms and conditions. This is a safe and secure step for the future. In case of any property dispute happen later this document will help you a lot.
The rent agreement should have all terms and conditions clearly to avoid any confusion or difficulties in the future.
Make sure this agreement has all the details mentioned such as
- Details of tenants like full name, and permanent address. Monthly rent, date of expiry of agreement or agreement duration, security deposit. The name of the landlord should also be mentioned in it.
- Including rent, Other amounts should be mentioned whether it is monthly or yearly maintenance deposit, other expenses like water bill, electricity bill, etc should be included in rent or not. Mode of payment in cheque, cash, and date to pay rent monthly.
- You should include penalty charges in case of any damage to your premises.
- You must specify the facilities which tenant can use like parking area, swimming pool, gym, club house, park or any other amenities of the society.
- The document should also include the terms and conditions for premature termination of the agreement.
The rental agreement made for commercial properties is for longer terms as compared to residential properties.
- REGISTERING THE AGREEMENT—Make your agreement legal and then register it as soon as possible. According to section 17 of the Registration Act, the rent agreement should get registered if the lease period is more than 11 months. It is legal evidence the property owner has which is beneficial in case of any legal dispute happens in the future. It is the only evidence that is considered legal in the court. Registration and stamp duty is paid legal formalities to be done.
- TENANT BACKGROUND CHECK—A background check is unable to be ignored. In common language, it is also known as POLICE VERIFICATION. As per section 188 of Indian Penal Code, not getting the background check of a tenant is a punishable offense.
It is needed for safety purposes and it also lowers the risk that you may not rent the house to some criminal background person or some illegal activities will happen over there.
The landlord can check their premises from time to time and get in contact with tenants to ensure the safety or any misuse of premises.
For police verification, you just need to fill out the form provided on the online portal of the police department’s websites. You can also fill out the verification form and submit it to the nearby local police station.
- SECURITY DEPOSIT—A security deposit is an extra amount that is paid early by the tenant to assure the safety and maintenance of your premises. Ask for a security deposit from your tenant. It is protection money that can be used as an outstanding payment or arrears for repairs i.e. if damages happen owner can use that security money for repairs. If the tenant escapes the rental premises without informing the owner then this security deposit money came to the rescue.
If your property is well maintained when the tenant is vacating, then only you can return the full security deposit amount to the tenant at last.
The Don’t’s
- Don’t skip to making the rent agreement even if your tenant is a known person or family.
- Don’t forget to register the rent agreement. It is to be done as soon as possible.
- Don’t forget to take the signature of the tenant in the rental agreement before he/she enters the property.
- Don’t let your tenant keep pets or play loud music or any other condition if their society members do not allow it.
- Don’t rent Bachelor if it is not agreed by the society committee members. Do follow the rules of society also.
- Do not try violence in case of any dispute in between the lease period or at the time of eviction of the tenant. Do follow legal procedures for it.
- Don’t visit your rental premises at inappropriate times for the check.
Finding an ideal tenant is not easy. Every year people face the problem of misuse of their property very often. Tenant Eviction, misuse of property, not paying rent on time, and many more.
This is a huge issue for landlords after they give their properties for rent. Legal formalities like background verification of tenant, legal rent agreement, registration, and others are pivotal and necessary so that landlords should not get stuck in any difficulties later. You should consult the best and most trustworthy experienced experts for all legal formalities.
Above are the important points to be noted before renting your property. Discuss all do and don’ts with your tenant. For more legal advice and help you have the perfect choice for any legal assistance or services.
LEX SOLUTIONS is the best choice to opt for legal services to landlords before giving property for rent. LEX SOLUTIONS is the best law firm in Chandigarh who have experienced and professional lawyers in Chandigarh. They provide the best professional guidelines, advice, and services to their clients. LEX SOLUTIONS are the safe and secure hands to provide you with the best services.
