Renting out a property could be a severe headache for a landlord if not handled properly. Hence, it is important to do proper research before leasing out your house. Some of the common problems the landlords usually face are – misuse of the property by a tenant or his refusal to vacate, delay in payment of rent and non-payment of maintenance fee on time and others. Well, this could be easily avoided if you check even the small details related to the tenant carefully.
Having said that, we have prepared a comprehensive checklist for you to look at before renting out your property.
1. Fixing the right price
First and foremost thing you should do as a landlord while renting out your property is fixing the right rental price. For this, you have to research about the market trend thoroughly and then only make an informed decision. In case you want to fix a higher price for your property than the market rate, make sure that you justify it by offering extra furnishings or any other premium services including automation or smart security devices.
2. Take referrals from your connections
When it comes to tenant screening process, a landlord should always look for referrals. This would help you in ensuring that the person who is taking your house on rent is not a stranger and you can trust him. Hence, before shortlisting any tenant, it is better to take referrals from your network to avoid the complications in future.
3. Verification of key documents
It is of paramount importance to get the essential documents verified, including Aadhar Card or PAN Card. Along with that, additional documents like employment identification proof should also be authenticated in order to get information about their current employment status which adds an extra level of security.
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4. Paperwork is must
Nobody likes extensive paperwork. However, getting the lease or license agreement registered is of utmost importance when leasing out your property to the new tenants. The agreement should clearly mention all the details of both the parties, including name, address, father’s name, permanent residence, etc. It should also include rental amount, bills and payments, quantum of rental increase and period of revision.
In case of any discrepancies or failure in registration of the agreement, it will be null and void in the court. If this happens, it may lead you to hefty consequences in future.
5. Police verification before renting out your property
If you are planning to give your house on rent, then police verification is must. This lowers the risk of renting your property to someone from criminal background. For the police verification, you just have to collect the necessary documents of your tenant like Aadhar Card or any other identification proof along with the verification form which can be easily downloaded from state police department’s website and then submit it to your nearby police station. In case of any dispute, this would give you an advantage that the local police is in loop and would come to your help.
6. No commercial usage
Nowadays, many tenants try to play smart and use rented residential property for commercial purposes in order to avoid paying high rents, which is completely unfair and unethical. Eluding such situation, a landlord should clearly mention it in the rent agreement that the property is not for commercial purpose and also, give time-to-time visits to the house.