Are you trying to rent your property? These are some of the things that you should bear in mind before renting your property.
- Police Verification of the Tenant
Before renting your property or drawing up an agreement, let’s just be sure that the Tenant you are renting your property does not have any criminal background and he shall be able to pay the rents in time. The Section 188 of the Indian Penal Code makes it a mandate for all the landlords to get the police verification done for the tenants. This is a simple procedure and you just need to fill in the online form in the respective state online portals with the relevant documents. The police process the application and then sends the final report.
- Details to be discussed with the tenant
When you rent a property you need to discuss with the tenant, what would be the advance amount that is required to be paid by the tenant and when is he supposed to pay the same. What is the amount of rent that is to be paid? Make sure that the rent amount is reasonable and fair and in accordance to the state Rent Control Act. The date on which he is to pay the rent or the period during which he needs to pay the rent. Usually, the Advance is paid by the tenant before occupying the property and the rent is advised to be collected during the 1st week of every month.
- Negotiable terms with the tenant
You can always negotiate with the tenants on terms and conditions regarding pets, details regarding repainting, the furnishing of the property etc., also discuss the time period in which you may visit the rented property for inspection.
- Rental Agreement
The next step is to have a rental agreement. The rental agreement needs to be drafted very carefully including clauses like the details of the property to be rented, the time period of the rent, the period of notice for renewal or rescinding the rental agreement, what is the rent amount and when shall it be paid, the amount of advance and security deposit to be paid, small details including who shall pay the gas, electricity, water bills, maintenance charges etc., and the rights and duties of the tenant and landlord to be provided.
- Registering of the Rental Agreement
Under Section 17 of the Indian Registration Act, it provides that all rental agreements exceeding the period of 11 Months shall be registered mandatorily. But in certain states like Maharashtra every rental agreement has to be registered accordingly. Hence the rental agreements are to be registered with the state registry by paying proper stamp duty and registration fees.
Hope this article helped you! Happy Renting!