It is financially viable to rent out houses and buildings that are more than our needs or currently unused. In addition to tax benefits, it is also a good source of income. However, renting a house is not an easy task. It is a very challenging and responsible thing to do.
Before renting a house or building for lease or monthly rent, the landlord must take some precautions to ensure its security.
1. The landlord must first look at whether the buyer is paying the exact rent. It is imperative that the tenant knows the KYC. There are a number of cases where the landlord does not pay the rent properly and at the same time does not vacate the property and the landlord has to go to court. The law will go according to the rules, so it will take a long time. Until then have a good time with the tenant! Obtaining police verification of the tenant is also very important.
2. If a person has defaulted on a refund or is involved in any case, there are some agencies that report it. You can seek the help of such agencies to find out the background of the customer.
3. For the lease agreement to be valid, it must be signed by both parties. And must be attested by two witnesses. The lease agreement must specify the rent, the term, the evacuation date, the security deposit, the right to rent, and the do’s and don’ts. There must also be a provision that gives the landlord the right to vacate the property before the expiration of the term if he acts contrary to the terms set out in the lease agreement.
4. Even if it is a lease agreement of one or two months, it must be properly stamped. If the lease term is more than eleven months, it should be registered with the Sub-Registrar. Unregistered documents that do not pay stamp duty will not be valid in court. In addition, they can lead to legal complications.
5. Visit the rented establishment monthly or at least once in three months. Ensure that the property is well maintained and used in a permissible manner. If the leased property is for domestic use, it should be used for domestic use only.
6. Check whether the tenant has to pay the bills, electricity bill and water bill as per the contract. The contract should include a provision that the landlord has the right to evict the tenant if he does not pay.
7. If the property is not vacated on the date stated in the contract, the tenant should be liable to reimburse the owner for any loss incurred as a result.