By Mr. Sudhir Pai, CEO, Magicbricks.com.
Having made one of the most important financial investment in one’s life, landlords don’t want to go wrong while renting out their property. But most of the landlords have mixed experiences to share while renting. There are certain risks and uncertainties that are always involved in renting and landlords must remember five key things before letting out the property:
- Screening of potential tenants: First and foremost, all landlords must do their due diligence through a background check on the potential tenant. Ensuring that tenants filled their police verification form correctly is the top priority. If the tenant has lived in the same location/city, then a check with the previous landlord is a must. Personal references must also be sought from them.
- Understanding the rental trend: Most of the landlords make the mistake of not understanding the rental trend in the area. It is very important for landlords to understand the USPs of the property and the area, its connectivity, nearby social amenities and security and explain these to the tenant. The rent must commensurate with the property and the location.
- Drafting a robust lease/rent agreement: Landlords often make the mistake of taking the rent agreement quite lightly, while it is very important to have a robust one. This important legal document carries all terms and conditions under which the property is leased. State-specific landlord-tenant laws and provisions, term for tenancy etc. need to be clearly defined. In cases where the agreement exceeds 11 months, it becomes mandatory to register.
- Timely payment of rent: Keeping friendliness and casualness aside, it is important for landlords to ensure that the tenants follow the discipline of paying the rent on time. Being late with payments may affect one’s loan EMIs, if any.
- Maintenance issues: Being a landlord, one has to maintain the property, look after its well- being and pay property tax on time. This is why it is crucial for the landlords to decide on the maintenance amount as per the rent. To maintain good turnover in property, maintain less vacancies and manage constant rental income, one should be quick in addressing tenants’ issues and requests.
Corporate Comm India(CCI Newswire)