Most people will agree on this fact that giving a house on rent is not an easy task, yes it is true & it could become a serious headache for you.This problem is also comes with certain challenges like searching for the good tenant, property misuse by the tenants or refusal to vacate, fear of the damages, delay in payment of rent or non-payment of rent etc. so is important to do all the paperwork before giving any apartment/House on rent towards tenants. If you are a landlord and planning to give any property on rent, here are some basic points that a person should keep in mind so that the hassles could be avoided.
Lease agreement
Before given a property on rent you must have to create a lease agreement. This is a most important document for a landlord as it will be only point of reference in case the landlord plans to discuss something regarding tenant stay. Even the landlord rights and responsibilities and the tenant rights and responsibilities will be well-defined in this agreement. The rent should be clearly mentioned in the agreement along with the quantum of increase in rent. You must keep the original hard copy of the lease agreement with you. What happen if the tenant violates the lease agreements term& conditions? In case the landlord doesn’t have a hard copy of the agreement than he won’t be able to question their moves. Moreover the lease agreement states the rent, deadlines for submitting the rent and also the penalties. Also it is a important point to get the lease agreement register.
Addenda
If a landlord forgets to include any term or want to add a new clause to the rent/lease agreement a few months than you can add an addenda to the agreement. Thereafter all the parties should sign it. This agreement holds an equal importance as does the rent/lease agreement.
About the tenant
It is also important to maintain a document that holds all the information of the tenant for example his hometown, workplace, contact details, emergency contacts among others. This information can come be helpful in case of any emergency. In case the tenant vacates the property without paying the rent, than these contact details will help you in the process of finding him Or in case the tenant has fallen sick or needs help, by these details you can inform his closed one or his family.
Identity/address proof
It is one of the most important documents that landlords should keep as a copy so that the landlord has proof of resident of his tenant. Also, if landlord is renting out to students then landlords can ask for identity proof along with parents/local guardians’ contact details.
Police verification
Police verification is a process which helps in checking background of the tenant. Not doing this part is a punishable offence under Section 188 of the Indian Penal Code. This process lowers the risk that the house is not being rented out to a person from a criminal background. For police verification the landlord simply has to fill the verification form and submit it to the local police station along with identification proof, two passport size photo of the tenant and the landlord. Verification form is available online on websites of state police departments.Apart from the above, the landlord should visit the premises once in a while to check whether the tenant is violating any term or if the tenant has sublet the property. If yes, than the landlord can demand the tenant for vacate the property. If the tenant refuses to vacate the property, the landlord can approach the authority.
Checklist
This would come helpful every time a tenant moves in and moves out. Landlord has to maintain two checklists a) move-in and b) move-out to ensure that he is delivering the property and will take it back with all the things in place with no damages caused. A checklist, when the tenant is moving in that will ensure that the landlord has provided everything to the tenant needed and also to keep a check that all the utilities are in order and working. A similar list should be created when the tenant moves out.
Post dated Cheques
A landlord must take post dated cheques for the period for which the property is given on rent. The cheque given is an advance cheque for each month of tenancy.
Hire a lawyer
It is advisable to engage an experienced lawyer for the purposes of drawing up the rent deed and also the verification of the tenant.