When Anjan settled down in Bangalore after completing his education and landing a cushy job, he requested his mother to live with him in his new apartment.
He has been extremely attached to his mother, having lost his father while still in school.
His mother always refused to live anywhere else but their family home at Kalighat.
“I cannot live anywhere else. Your father’s memories are still alive in this house,” she used to tell Anjan.
But age has been catching up with her and this time Anjan could convince her to move with him on one condition.
That Anjan would not sell his family home at Kalighat but he can rent it out.
Anjan readily agreed. He did not want to sell their Kolkata house in any case. That would have cut off a vital connection with this city.
He decided to rent out the house.
“If someone lives in the house, there will be some upkeep of the place,” he thought.
But he never rented out a home.
How will he make his home tenant-ready? What is the must-do documentation? What are the legal implications? How can he verify the credentials of a tenant?
In this article, we will answer the questions that Anjan had and more.
Is Your Property Ready for a Tenant?
Before you decide to rent out your property, you should inspect it thoroughly and make sure certain points are in order.
Check the electrical wiring and the plumbing are in good condition and that there is no water seepage.
Also, ensure that all the fittings and fixtures are perfect.
If the property needs a painting job, do it before you show it to prospective tenants.
It is a good idea to upgrade the features before renting. This way the property will look well maintained and that will help it command more rentals.
Make Sure the Documentation is Perfect
The latest electric bill and taxes must be paid before you rent out a property.
You should adhere to government and legal conditions in rental agreements.
The (1) Leave and License/Lease Agreement and the (2) tenant move-in list are extremely important and must be as detail-oriented as practical.
Leave and License/Lease Agreement
The documents should include the tenant’s name, photograph, permanent address, monthly rental amount, security deposit amount, duration of the lease, and the terms and conditions of rent increase.
The agreement should clearly state the terms and conditions of vacating the property by either party, the landlord and the tenant.
Penalties for any breach of the terms must be specifically mentioned.
After both parties sign the document, it should be registered with the sub-registrar’s office (SRO).
Tenant Move-in List
Make a list of available fixtures and facilities the tenant can use during his stay on the premises. The list should also contain the names of all furniture and accessories in the case of a furnished apartment.
The list should form a part of the lease agreement.
Get an acknowledgment from the tenant on this list to act as proof in case of any damage to the property that would have to be billed to the tenant.
After these documents are complete, hand over the keys to the tenant. It is a good idea to hand over the keys at the property personally so that the tenant cannot complain about the property’s condition later. Alternatively, you can take the help of a caretaker.
However, you should take a couple of steps before handing over the keys to the tenant.
Verify the Tenant and Inform the Police
You must check the tenant’s antecedents to ensure the tenant is reliable.
Check where the tenant works, whether he can afford the rent, his family members, credit score, and renting history.
Before allowing the tenant to move in, inform your housing society and the nearest police station and submit the relevant documents.
Regular Inspection of the Property
Even after the tenant starts living in the property, you must regularly inspect it and ensure it is in good shape. Carry out an inspection quarterly or half yearly (as specified on the lease agreement) to identify and address any issue swiftly. This will also give you an idea of how the tenant maintains your property. Notify the tenant 24 hours in advance before going for an inspection.
If there is any complaint or issue, solve the problem immediately. It is beneficial to have a good relationship with the tenant and he may favourably consider renewing the agreement.
What to Do When the Tenant Vacates the Property
A landlord must take some actions when the tenant vacates the premises. He must get a written notice from the tenant about when the tenant will move out. A tenant usually has to give a 30-day notice before vacating the house. If a tenant leaves urgently, then the rent will be adjusted as per the agreement.
Check the property thoroughly before the tenant moves out. If there is any serious damage to the property or the fixtures/furniture, you can ask the tenant to repair it. Alternatively, you deduct the repair charges from the security deposit.
Return the security deposit once you are satisfied with the condition of the property. It is a good practice to return the money through cheque/online payment and get a receipt from the tenant. Always maintain a checklist while renting out your property. Moreover, follow all the proper procedures to avoid any problems in the future.
