Property has been a valuable asset from time immemorial- whether you sell it or offer it for rent. But along with the rewards comes the mayhem too. If not cautious about a few things, this area of trade can be both dangerous and disturbing. It would be more of a snag than a profitable venture. It doesn’t matter whether you are letting your apartment or house for the first time or second, you need to know few things. Here is a list of ten things to be kept in mind before letting out your property on rent which will keep you at peace and financially secured.
Responsibility: Living a landlords life
Before you plunge into the idea of renting out your property, think twice! The job requires a lot of responsibilities which the landlord needs to shoulder and that’s not easy. Surely benefits are on the list, but oddities are also innumerable. Maintaining repairs, collecting rent, frequent follow-ups, settling any issues are a few to name. Only if you feel confident, then go ahead.
Legal Papers: Hiring professionals
Avoid legal controversies at any cost. This is a very crucial area as there should not be any legal issues regarding the property you are offering on rent. If in any confusion, legal advisors should be approached for professional help. It will be the best suited way to relieve you of any future pandemonium. Please note that you will have to show whatever income you are getting from letting your house on rent, you can use hra calculation tool to find your rax responsibility.
Legal Agreement: Basic rules
Consult a legal advisor to develop an agreement meant for the tenants. Here you can incorporate basic dos and don’ts through legal language, which suits your needs. Destruction of property due to housekeeping negligence is one major area which needs to be looked into. Very stringent rules do not work well for renting out. So be careful!
Monthly rent: House rent receipt
Be very specific about house rent- its mode of payment, deadline dates and penalty amount. Incorporate that in the agreement to avoid future denials. Also make sure you give out receipts at the end of each month for your record. This will not only help you to be more organised with your finances but will also keep you away from the peril and confusions of the amount of tax to be paid! You can download sample house rent receipt here.
Listing and repairing: hidden costs
The property for rent should be in good shape to attract a good price and better tenants. Thus a quick screening should be done before renting out. Listing of appliances and furniture if any, and whether they are in good condition or not should be the top priorities. Repairing any leaks and cracks, cleaning up the house, also adds on to the value of the property. If you are renting out a part of your own house make sure it is separate and non-interfering with your space. This can be a challenging task and might incur much expense from your own pocket. So calculate wisely.
With the rising competition, pricing has become a very tricky affair. Keep in mind the condition of the property, its location and hidden expenses incurred. Do not go overboard with the renting prices. If confused refer to websites and find out how much other people are charging for similar property in and around your location. Tenants will surely do their homework, so be alert!
Advertise on Classified sites
Letting people know is a great idea to get tenants faster. There are several property and general advertisement sites which offer ads for free.
Below are few popular classified sites in India, where you can post ads of your vacant house, for rent at no cost:
Word of mouth and newspaper ads comes only after internet ads fail to bring any responses. Be regular with posting of ads!
After you are through more or less with the above steps you should be getting fair number of people enquiring. Make your final judgement wisely. Note down their details and screen them on the basis of valid identity documents; qualification, marital status, job status etc. Do a background check if possible because they are strangers after all and you don’t want a criminal residing in your house right under your nose. Moreover discuss with them what you expect from them and finally maintain a friendly yet cordial relationship with them to avoid unpleasant encounters!
It is your property and you can make things better for yourself by following these basic guidelines. Better safe than sorry! Rest depends on circumstances and fate! Good luck!