Things to Keep in Mind Before Renting Your Flat
When we are acquiring more than one property, we certainly try to make the best possible use of it rather than letting it stay idle and that’s when we decide to rent the property to earn an additional fixed amount of money every month.
However, do keep in mind that renting your flat is not as easy as it seems. Before you decide to rent your property and set out to find a long-term tenant, there are certain things that you must remember before renting your apartment.
1. Think about your price point
Properties in different neighborhoods have a different rental rate owing to the amenities provided. Find out the prevailing rent prices for specific properties in your area before you set the rent amount. If your property is a well-furnished one, you can charge higher rent from your tenant.
2. Advertise on the right channels
If you soon want to get your vacant apartment filled by a tenant, you should advertise your property. Online portals can be of great help where a lot of people look for rental property. Click good pictures of your home, upload them on online portals and get queries from prospective tenants. Those who are not tech-savvy can place advertisements in the newspaper to market their property. Or you can choose both the options. This way you can advertise your property on a variety of channels. Also, you can approach a local broker which is a great way to reach out to the masses.
3. Decide the Tenure
Your rent agreement should mention the tenure of tenancy, exact dates from which date to which the lease should be valid. Some owners choose to rent their flat for a period of one year while some agree for five years. It is suggested that you should settle down for a tenure of one year and keep renewing the agreement manually.
4. Draft a lease/rental agreement
A rental agreement is the best cautious approach when you lease out your property as it encloses all aspects of your lease contract in one document. Make sure your rent includes all the important details, including the names of all tenants, terms of the lease, monthly rent, tenant’s permanent address, office or shop address, and security deposit.
When you have a rental agreement in place signed by both parties, it should also specify whether utilities like water and electricity bills are a part of the rent or to be borne by the tenant, thus helping both the parties understand their rights and obligations. The agreement should state the date of the expiry of the rent agreement including a clause for extension of the landlord-tenant relationship.
5. Get the agreement registered
If a rental agreement is more than 11 months, you must get it registered under Section 17 of the Registration Act in the sub-registrar office. If not registered, it is considered inadmissible in court in case of any legal dispute between the landlord and tenant. So a registered agreement would help the landlords to take preemptive measures for eviction.
6. Get the tenant’s police verification done
Tenant verification ensures many benefits including respite that tenants are capable of paying rent on time and are not having any criminal background. You should check for the tenant history, especially with regards to his office address, shop, permanent residence, reference from the previous employer, family background, etc. All this will help ensure that tenants are of a good background. It is also advised that the details submitted by the tenant are cross-checked and verified. Police verification of tenants is now mandatory for landlords and is also vital for your own safety.
7. Decide the Security Deposit
Decide the security amount that needs to be deposited with the landlord by the tenant. A higher security deposit can save you from any loss and encourages residents to value the property. You may like to charge a higher amount in cases of high-risk situations.
8. Discuss dos and don’ts beforehand
If you are renting a home it’s essential that your tenants are aware of their responsibilities. To discuss your terms and conditions with your prospective tenant to avoid any potential problems or any damages done to the home. For instance, you may not like your tenant have a pet at your apartment or you may want to request them to keep music volume down late in the night. Such open and clear discussions in advance will try to ensure that both parties are fairly clear to each other and will not lead to any disagreements at a later stage.
If you are ready to lease an apartment, the above tips will definitely come in handy and can help make sure that you get a good tenant 🙂
