Do You Want to Rent Out Your Property? Things to Know
Moving to a new place? Indeed, a challenging affair, but renting out your property before shifting is another trial that needs to be taken care of. Apparently, you must be looking for the people who are trustworthy. Yielding a regular rental income is also on the priority list. But, these are just a petty concerns that inhibit the mind of the landlords. There are other considerations to be made before handing over the property in a sublease.
Renting out the property involves a few set of risks and one need to make a wise decision before making a final verdict.
Low returns – Often the yield from the rental property is confined to 2-3% that is undeniably low. Though revision of the rent can be done on a yearly basis and the return improves only with the passing time.
Extraneous expenses – Being a landlord, you are responsible for undertaking the major repairs needed in the house. Hence, you may end up spending more than the actual rental income. Also, every time the tenant leaves the house, it is important to get it painted for renting it again.
Difficulty in getting the tenants – Truly, a major problem it is! In the meantime, you are responsible for paying the electricity bill, water bill and other maintenance charges for the dwelling. It certainly adds up to your liability.
How to Rent Out the Property to Right People?
Overcoming the risk factors may not always be possible, but finding the right tenants is in your hands that also helps in minimizing the risks involved.
It’s time to research – Do your homework properly before renting out your property. Yes! Research is the key to making a sound decision. Find out the existing rates of the rent in the concerned area for quoting a competitive price. It works!
Police verification – After you find a tenant, get a police verification done. As the tenant is required to submit an identity proof, the police make a background check to confirm the credibility of a tenant before making an approval.
Make a lease agreement – It is essential for avoiding future complexities. The agreement is made by a real estate agent that comprise of terms and conditions of the contract. Anything that happens against the modalities of the accord offers right to both the parties to sue the other for any wrongdoing. Also, the contract is signed for 11 months for avoiding the overstay of the tenant in your house.
The final step is to get the agreement registered under the court of law. As a landlord, you are subjected to bear the stamp duty.