RedGage

From a Lessor’s perspective, this creates immense opportunity to earn an income by renting out their house, vehicles, furniture or anything they do not want to keep as an idle asset. One of the most sought after commodity in the rental market is the house. Let us look into the top factors that one should check before signing the agreement, both from the lessor’s as well as the lessee’s perspectives.

The lessor, before handing over the keys of his house on rent has to look into a multitude of factors -

• Identify and get convinced that you actually want to give your house on rent. This is mostly a long term commitment and one should be sure that you are renting out only that ‘extra space’.
• Identify the right buyer - Decide on whether you want a family or bachelors/students as the occupants.
• If it is bachelors, make sure that your neighbors are convinced.
• If you are living in a gated community, inform and take consent from the apartment association
• Perform a thorough background check of the lessee. Verify their employee ID card, Government issued ID cards, passports etc. and make sure that everything is genuine and in place.
• The new occupant’s credentials should be submitted at the local police station.
• The rent/lease agreement should be clearly drafted;  if required take legal help
• If you are renting out the house along with the household utensils, list them out clearly in the rental agreement.
• The details on the security deposit, rental amount, maintenance cost etc. should also be clearly mentioned.
• Get the agreement signed by the lessee, in the presence of two witnesses and hand over one copy to the lessee.

Now let us look into the factors that the occupant has to check before signing the agreement:

• Zero in on the right location - prefer a location which is closer to the workplace and other facilities like supermarkets, schools, bus stop etc.
• Check on the rental and maintenance charge progression year-on-year
• Verify the background of the owner and check the safety of the premises
• The lessee should verify if all the facilities as promised are available including the vehicle parking.
• Verify if the security deposit amount, monthly rental and maintenance charges are clearly mentioned in the lease/rent agreement.
• The occupant should also look carefully into the exit parameters
• The occupant should be clear on the exclusive resources and shared resources
• Insist on having separate power and water meters.
• Insist on getting the monthly rental and maintenance receipts.
• Last, but not the least, provide accurate details to the police if there is verification. It will be a good idea to be present in person before moving in.