12 Factors Landlords Must Consider While Renting out Their Property

Landlords should keep records of every kind of payment, they can be handy in case of legal disputes

12 Factors Landlords Must Consider While Renting out Their Property
12 Factors Landlords Must Consider While Renting out Their Property

When it comes to renting out your property, many people tend to think it is an easy job. People consider renting out their property for it gives them an extra monthly income to improve their lifestyles. What people tend to not realise is that renting out your house can be a tedious job since it involves finding the right tenant, negotiating finances, and various other things. Here are 12 factors landlords must consider while renting out their property.

1. Hire an Expert to Negotiate Finances

Turning your property into a rental property may sound like an easy task but it has a lot of technicalities involved. It is best to hire real estate attorneys to negotiate finances and make sure you are abiding by the tax laws, zoning ordinances, and local property rules.

2. Get Your Tenant’s Police Verification Done

There is a provision in the Indian Penal Code (IPC) that could get the landlord booked, for an offence committed by the renter. Hence, it is important to get your tenant’s police verification done not only because the current laws require you to do so, but also because of your security reasons.

3. Choose a Tenant with a Stable Job

It is important to choose a tenant with a stable job because a tenant with a well-paid, stable job is more likely to pay rent on time. Hence, this factor must be considered while finalising a tenant. You can also do a credit check to see if the tenants had been paying their rent previously on time.

4. Find Tenants Online

Searching for tenants online enables you to choose suitable tenants from a vast number of applicants. Generally, when looking for tenants through local brokers, you do not get the option to choose your tenants because of the lack of several applicants. Several broking websites can be a medium for you to find suitable tenants for yourself.

5. Set the Right Rent Price

You need to set the right rent price for your property while renting it out. This would enable you to get the maximum returns you could’ve gotten by renting it out. Factors such as size, location, demand, type of property (commercial or residential), and furnishing are important to determine the price of your property.

6. Have a Written Agreement

Having a written agreement is the best way to avoid conflicts between you and your tenant later on. Oral agreements are less enforceable than written ones that have signed documents by both parties. These agreements could include rent price, agreement tenure, dos and don’ts.

7. Collect Rent Online

Online payment methods are convenient and secure for both tenants and landlords. In this digital era, both millennials and older generations prefer paying their rent online. This would also save landlords from the hassle of going and collecting rent or cheques physically every month.

8. Keep Records of Payment and Finances

Landlords should keep records, preferably digital, of every kind of payment whether paid or due. These payments include deposits, rent receipts, and maintenance. These records can also be handy in case of legal disputes.

9. Renew Agreement Three Months Before it Expires

If you are willing to keep the same tenants even after the end of the first agreement, you should renew the tenancy agreement three months before it expires. Doing so would avoid further complications.

10. Market Your Property Well

You need to market your property well to attract tenants who are willing to pay higher rents. To do so, you must upload clean and tidy pictures of your property on broking websites and mention the surrounding public places such as markets, parks, shopping complexes, schools, offices, etc. around your property. You should also mention privileges such as appliances, round-the-clock security, and a gym that are provided by your property.

11. Prepare Your Home According to Renters

When it comes to renting out a property, tenants tend to be choosy and have high expectations, especially when they have a wide variety to choose from. Hence, you need to welcome your new tenants with a thoroughly clean home with all appliances in working conditions.

12. Rent Out Your House to Tourists for a Couple of Days

The digital world has made it possible for landlords to rent out their homes to tourists even if they want to do so for one night. The concept of homestays is becoming popular day by day because tourists now prefer staying in houses of local people who are from the places they are visiting over staying at hotels. After all, it allows them to explore the culture.

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Outlook Money
March 2024

Askmoney



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