Renting out one's unoccupied property makes good business sense, for most of the house owners. By renting out the property, one can generate a considerable amount of income, which can help in a number of ways, besides taking care of house maintenance expenditure. Despite of all these windfall, renting out their property has been a dreaded proposition for most of the house owners. Most landlords generally shy away from renting their properties, because of the general perception of bad tenant behavior. Besides the litany of bitter experiences of landlords, rent control laws favoring tenants also add to the woes of house owners.
With various state rent control laws yet to be amended in order to be more equitable for property owners, an extra dose of caution is called for, before handing over the rooms. After finding a tenant, you should check out his background and his financial capabilities. Gather information about his employer/business and whether he is earning enough to pay the rental charges regularly. In case of companies, check their track record and reputation, what business they do, whether the society byelaws allow renting out for commercial purpose. It is advisable to rent out properties for a short duration.
While big corporate may prefer a three-five year lease, landlords usually prefer the relative safety of a leave-and-license agreement, which ensures periodic renewal of the terms. The eleven-month agreement is usually popular, as these pre-empt the rent control laws, which apply after 12 months. While drawing up the contract, you should take help of a legal expert and prepare a comprehensive agreement without any loophole. In the agreement, include the following: clauses specifying what are the charges, if not vacated when the contract ends; specify that subletting is prohibited under any circumstance; mention the period of notice to be given, in case of termination of agreement.
Even after all these preliminary steps, you should occasionally visit the house, to make sure the tenant uses the house properly, for the specified purpose. At the time of vacating the premises by the tenant, ensure that the house is in proper condition and tenant has cleared all outstanding dues such as water, electricity and society fees. Return the security deposit only when you are certain that all the dues have been cleared. If you are renting the place to a foreigner, the you need to register with the police commissioner. In some areas, even for renting out to Indian citizens, one needs police permission.
Property Buying Tips
Buying a property is perhaps the single biggest investment made by a person during his lifetime. Thus, you need to exert due caution in buying a house, lest your precious savings goes down the drain. After zeroing in on the desired property, you still would have to wade through a formidable maze of tedious legalities and endless paperwork.
How to Choose a Builder
Builders and developers have played a pivotal role in the burgeoning Indian real estate industry. Besides the well-entrenched real estate giants, a number of smaller companies too have joined the fray in an effort to grab a share of this lucrative pie. In such a scenario, prospective buyers often get confused about choosing the best builder.
Property Selling Tips
If you are troubled selling your property, then you are not alone on earth. In the real estate business, many sellers are failing to attract potential buyers, mainly because of the fact that they are not aware of the basic requirements for selling a property, legally. Selling a property has become an uphill task for owners like you, because right from finding a prospective buyer to finalizing the sale agreement, you need to do your homework in order to strike a favorable deal.
Taking House for Rent
In spite of the general trend of cheap home loans and rising dispensable income, a major chunk of the urban populace have to make do with rented accommodations. They may include outstation students, young executives or lower middle-class families, running on shoestring budgets. All these people are burdened with the task of finding the right property in the right location and within the right budget, besides dealing with condescending landlords.