Renting out a property for a first-time home owner can be a tedious process, where even some small mistakes can have serious consequences, in the absence of a proper agreement. Here are some of the things that can help you ensure that your property is safeguarded, even when it’s rented out.
Proper legal documentation is the most crucial thing while you are renting out your property. “Infringement of property by illegal means or absence in the receipt of rent and unlawful activities owing to lapse in tenants background checks, are some of the risks that owners expose themselves. Moreover, without legal documentation there won’t be any means to solve disputes” says Santhosh Kumar, CEO – operations and international director, JLL India.
Real estate experts suggest that the amount to be charged as the rent is directly related to the value of the property/home. Generally, the rental amount is approximately 0.8 % to 1.1 % of the total value of the home. Other factors can also be considered, i.e. the location of the property and amenities being provided. Other external charges, such as maintenance charges can also be included in the rent.
Every rental agreement should be in writing and registered. The rental agreement should specify the terms and conditions of the lease, the monthly rental amount and security deposit. It should also specify who will pay for the utilities, water, electricity and maintenance charges. The purpose should also be clearly mentioned, i.e. whether the property is being used for commercial or residential purposes.
Registration of the lease agreement
Expert suggests that it is important to register the lease agreement, under the Registration Act, to make it legally valid.
These are some of the tips that can help you to ease the process of and safeguard your property. Stay tuned for more tips like these.