7 Things to do Before Renting your House
As a property owner, renting out a house to a good tenant is always your number one priority. But, before you get to that point, there are some basic guidelines you should follow. Apart from tax benefits, renting out a house has several other advantages like getting additional income, etc. However, giving a house on rent is not an easy task and usually comes with its fair share of responsibilities and challenges.
Therefore, while giving residential property on lease/leave and license basis, the owner/lessor needs to consider some important things to safeguard their rights. Here we take a look at some of them:
1. Get a Home Inspection
Having your home inspected by a professional will help you to fix any critical maintenance issues before your tenants move in. This will help protect you from potential legal issues, while also saving you from having to answer multiple maintenance phone calls within the first few weeks of renting your property. Having home inspections both before a tenant moves in and after he or she moves out will also provide third-party documentation of any damage caused by the tenant.
2. Cleaning and Painting
There’s no substitute for a through deep cleaning and a fresh coat of paint when it comes to brightening the interior of your rental home. While trendy upgrades may be optional, if you want to attract the most qualified tenants, this basic rental hygiene is required. Your future tenants need to leave the property in the state it was first leased in (allowing for fair wear and tear).
3. Fix those ‘maintenance request’ risks early
If it’s broken, fix it. It might not seem like a big issue – maybe it’s just a small crack in the wall or peeling paint – but putting it off is just creating a future problem for yourself. Making it a future problem may also make the small issue into a big one.
4. Marketing the property
In today’s times, when buying a property is just a click away, it will be wise to make your property catch more eyeballs using various real estate websites including yourownroom.com. These websites provide the service of ‘house on rent’. All you need to do is create a profile, and upload the property details with photographs. You could also keep the traditional way of advertising through a newspaper and even word of mouth.
5. Screen Tenants Carefully
Start looking for a tenant as soon as your property is ready to be shown. Then, choose your tenant very, very carefully. You need to be able to depend on this person not only to pay the rent on time but also to keep your home in good condition. Also, if the person is someone you may be cohabitating with, learn their habits so you won’t run into any nasty surprises.
Don’t forget to gather references for potential tenants and check their credit histories. You should also take safety precautions when screening a tenant — after all, this person is a stranger. Once you’ve found the right tenant, ask for a reasonable security deposit and arrange an appropriate payment schedule
6. Preparing the rental agreement
A rental agreement is the most important document when you are renting out your house as it ensures that your interests are protected. The agreement is a legally-binding document that sets down in writing all the agreed-upon terms and conditions. The agreement should be drawn up by a lawyer and must include:
- Monthly rent to be paid
- Security deposit amount
- Additional maintenance charges
- The notice period for vacating the house
The rental agreement documents are one of the most important house rent rules in India. According to Section 17 of the Registration Act, if the lease period exceeds 11 months, then the agreement has to be registered. Stamp duty and registration fees will need to be paid at the time of registration.
7. Have a Lawyer Review your Lease Agreement
A lawyer can help ensure that your lease agreement does not contain any illegal provisions, while also protecting you from the financial harm that could result from tenants exploiting loopholes in your agreement. A good lease agreement will specify the ways tenants can and cannot use the property, how many people can occupy the rental, what insurance is required, who is responsible for paying utilities, and what will happen if the tenant doesn’t uphold his or her obligations.
Renting out a house can be a lengthy process, and a lot of the time, homeowners are looking to fill vacancies quickly. But, it’s crucial to invest the time in finding quality tenants. It will pay off in the long run.
