An investor’s guide on renting out a house for the first time
A house is one of the most-significant investments in an individual’s life. Renting out your home is a huge decision in itself, as there is a pressure of handing your house to the right tenants who will take care of your home like it is their own. This is especially true if you are renting out your home for the first time and are unaware of the process involved. Here’s all the guidance you need on what to expect and how to go about it.
Maintain the property well
As homeowners, it is your responsibility to maintain your property. Ensure that the bathroom and kitchen fittings are in good condition. Fix leaky faucets, broken pipes, faulty switchboards and improper drainage systems immediately. It is also a good idea to paint your house to give it a fresh look. Additionally, make sure your house is free from termites with pest control. Ensure your house is as good as new, with spic and span interiors, to attract great tenants and maintain the health of the property.
Fix the rent
It is essential to fix the rent you are expecting, as this would be the first question that prospective tenants would like to know. Start by looking at the market value of the type of house you are renting out. Next, consider the influential factors like location, facilities offered like a gym or swimming pool, social infrastructure and security services. Sometimes, furnishing your home with wardrobes and a modular kitchen can help increase the rental amount. However, do leave a gap between the rent you quote and the rent you expect. Leaving space for negotiation always gives a happy start to a landlord-tenant relationship.
Interact with potential occupants
The first interaction with a potential tenant typically happens through a phone call. Ensure you inform them of your preferences like vegetarian cooking, family crowd, your opinion home businesses and rent expected. This is considered as the primary screening. After this call, if a potential tenant is interested in moving forward, then schedule a visit to your house. When you are meeting the potential tenant in person, make sure to explain the association rules, maintenance cost, your opinion on having pets and the lease period. Once you are happy with the people after the meeting, go ahead with the negotiation of the rental amount, if required.
Scrutinise the rental agreement
Now that both the ends are ready to move forward, it is vital to draft a rental agreement. Before creating the agreement, check for essential details about the tenant. Ensure you have verified their Aadhar ID, photo ID and employment details. Ask about their family members and find out what they do for a living, just to be sure about the tenants. After collecting the essentials documents and proofs, begin drafting the rental agreement. Ensure all details like rental amount, period of tenancy, fundamental rules established by the association and the responsibility for any repair and damages during their stay are covered. Also, make sure to include any increment in the rent after a period of time. If you are renting your house for the first time then get help from any lawyer who is a specialist in drafting rental dealings.
Budget 2019 guidelines on rental income
With the objective to promote rental housing in mind, Nirmala Sitharaman – our new Finance Minister – is introducing a Model Tenancy Law to highlight the rights and responsibilities of the lessor and the lessee in a rental agreement. This move is in line with the government’s initiative to streamline the rental market of the country and make it more efficient. Homeowners can now rent out their properties with ease and contribute to the betterment of the nation by reducing the shortage in housing.
While renting out your home, it is crucial to take careful consideration in choosing the right tenants. Apart from the security quotient of having a roof of your own, many individuals also see real estate investment as a means of long-term secondary income and increased tax benefits. Planning to make another investment in the flourishing property sector of the nation? Head out to House of Hiranandani today for luxurious properties with huge room space, breath-taking views, modern architecture and increased ROI for a safe and secure future.