Posted on July 5, 2014

Renting out property checklist – Part I

Becoming a landlord is no easy task. It comes along with a bunch of duties and multitude responsibilities. The role of the landlord is idealised as someone who rules over his subjects and collects the monthly tribute (rent) like a feudal nobleman. Until that little medieval fantasy is crushed by the reality of exasperating tenants, leaking taps and complaints about noisy flatmates. It turns out that there is a lot more to being a landlord than collecting rent.

This article focusses on few things you need to keep in mind regarding the landlord and tenant's financial relationship.

Choosing the Broker –

Taking out a newspaper or online ad may work for owners trying to rent their houses without using a broker and the popularity of Web sites have made the process far easier. But brokers can facilitate the process by helping set the rental price with up-to-date comparable rental information, by showing the house, by helping to screen prospective tenants and finally by helping to watch over the property while it is rented out. Brokers typically charge landlords a fee equal to a month’s rent for finding a tenant.

Maintaining the property –

While every tenant looks out for a clean and well lit house, it becomes a duty of the landlord to clean, paint and landscape the house he/she intends to rent. Brighten the interiors of your home by thoroughly cleaning and applying a fresh coat of paint to make the interiors shine. Likewise, it’s important to make sure that the lawn and garden surrounding your rental house is neat and tidy before you post the ‘For Rent’ sign. Landlords are responsible for providing a safe property for tenants to live in and are required to maintain these standards.

Set a budget –

A thorough research on the current local rates would provide a clear idea about the rental rates. Although, they are largely determined by demand-supply, they do not directly reflect the real estate prices. Besides figures, key factors like location, connectivity, availability of social needs, age of the property and amenities are critical in determining the rent you will be able to charge.

Review your agreement –

Agreements are legal documents that outline the use of property, period of stay and clauses listing the financial terms involved. It safeguards the interests of both the parties. A rental agreement includes basic terms of tenancy such as names of all tenants, limits on occupancy, term of tenancy, rent, deposit and fees, pets and repairs/maintenance. It is essential to have a document that preserves the interest of both the parties: a tenant and a landlord. A rent agreement, thus, is the best way to take a cautious approach.

Paperwork –

Ensure that all documents submitted by the tenant are factually correct. Also get them independently verified. The agreement should clearly specify how the expenses would be split with the tenant. It should also enlist any expenses to be taken by the tenant. Renting out a property can no-doubt produce a steady source of income. It can also be a smart way out when facing a down economy and uncertain housing market. Also a great way to build savings and re-establish credit ratings! The influx of professionals and the raise of multi-national companies are the two major reasons for the growth of Sarjapur Road as a most sought after destination. Mulberry Woods, created by Saran Developers, are 4 bedroom condos located off Sarjapur Road. Being situated in the south zone of Bangalore, there is an availability of demand from potential people looking out to rent. Moreover, Sarjapur comprises of a well-developed physical and social infrastructure and is a whole community with presence of retail outlets, multiplexes, hospitals and banks which form a quality lifestyle for home buyers.