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.
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