Points to remember when renting your house

From Money Control

Decide on the rent: Do a thorough check of the area’s current rental rates and price your rent competitively. You can charge a premium if you have a well maintained and fully furnished property.

Insure the property: Ensure you have the maximum insurance cover for your property as the tenants are in control of your property.

Draft the rental agreement: The rental agreement should provide details about the term of lease, monthly rental amount and security deposit. It should also specify all the terms and conditions such as who will pay for utilities like water, electricity and maintenance charges. The purpose of tenancy should be clearly mentioned, such as whether the property is being used for commercial or residential purpose. If the rental agreement is set to expire and you and the tenant agree to extend the term of lease for a specific period, then the extension should be done in writing.

Register the agreement: It is necessary to register the rental agreement because only then it can be used as evidence in the court in case of any legal action. The amount to be paid for registration and the stamp duty may be borne by you or it can be split between both the parties depending on the situation.

Police verification: Not running a background check is a punishable offence under Section 188 of the Indian Penal Code. You have to fill the verification form which can be obtained from the state police department’s website. It must then be submitted to the local police station along with the identification proof of the tenant. The local police can then conduct a background check and give approval for the rental agreement.

Always take a deposit: A deposit is a vital means through which landlords can protect their property. It gives you an assurance that your property will be left in good order and that you can pay for repairs if it is not.

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