Renting out a property involves marketing your property, doing the paperwork and a responsibility towards tenants. It also comes with certain challenges, including searching for the right tenant, ensuring the property is not misused by the tenants, keeping a tab on the damages and maintenance, and ensuring there are no delays in rent payments.
So, if you are landlord planning to give your property on rent, here is a checklist that will help make the process smooth for you:
- Fix the rent
The first step towards renting your property is to fix a rent amount. Before you fix this amount, do a market check about the current trend. Fixing it higher than what the trend is would make it difficult for you to find a tenant. Or if you plan to fix it higher than the market rate, ensure that you justify it by offering extra furnishings or any other premium services including automation or special security devices.
2. Rent agreement
It is advisable to make a legal contract when giving your property on rent. Ensure that the papers are duly signed and the terms and conditions are clearly put across. To make the process smooth and appropriate for both landlord and tenant, signing a rent agreement is the best solution. This way the document will bind both the parties, which they mutually agreed upon.
3.Details of furnishings
List out your furnishings with each set of details for fittings and features. This would come handy in case of any damage done by the tenant. You could then levy a penalty charge. Landlords should check the conditions of walls and roof before renting out the property to avoid any clash in case of any damage.
4.Advance and rent increase
Make sure you take two months’ rent in advance. This is a common rule for every tenant to pay a set amount in advance. A landlord is entitled to ask this amount as a preventive charge for any damage of property or the tenant may not able to pay a month or two rent by providing any valid reason for that. It is also a general practice to increase the house rent annually.
This is a useful process to check the tenant’s background. This lowers the risk of giving rent to a person from a criminal background. Just get the details of your tenant like the identification proof along with the verification form which can be easily downloaded from state police department's website and get it submitted to a police station near your locality.
6.No commercial usage
Many tenants these days use the rented residential property for commercial purposes to avoid high rents. One can easily open a small office or a tuition centre in a residential property. To avoid such situation, a landlord should make it clear in the rent agreement and also, give time-to-time visits to the house.