TomorrowMakers

Renting out residential properties can bring in regular rental income. However, there are a few factors that you should consider when doing so. Find out what these factors are.

Planning to rent out your flat? Here's what you should know

If you have a house property that you don’t occupy yourself, you can rent it out. Renting your house property can bring in a regular source of income. Putting a house for rent is easy. Just list your property on property websites, with real estate agents, or inform your community that you’re looking to find a tenant.

However, when putting your house on rent, here are some important aspects that you should know about:

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Ensure that basic amenities are in place
When renting out your flat, you need to ensure that the flat has a running water supply and electricity connection. These are the basic amenities that every landlord is expected to provide to the tenant when renting out the flat. The absence of any of these amenities might result in a police complaint or litigation.

  • A rent agreement is a must

Always draw up a rent agreement that stipulates the rent, the validity of the agreement, the details and duties of the tenant and the landlord, and the rules for eviction. The agreement serves as evidence and is needed for legally renting out the property. You can take an advocate’s help to know how to make a rent agreement.

  • Insist on a security deposit

Most landlords ask tenants to make a security deposit before the flat is rented out. The deposit is also mentioned in the rent agreement and consists of monthly rent for 1-6 months depending on the area-wise limits mentioned in the Rent Control Act. This deposit is like an advance that can be used if the tenant vacates the premises without paying the rent. Moreover, you can also use the deposit to penalise the tenant for any damage to the property. The repair costs can be deducted from the deposit.

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  • The rent can be increased periodically

There is a provision to increase the rent after every 11-12 months. This increment is done with the mutual consent of the landlord and the tenant, and can range from 4% to 12%.

  • You cannot enter the premises at will

Even if you own the house, the tenant has the right to deny admission. If you want to visit the flat and enter the premises, you need the consent of the tenant. Forceful entry would give the tenant the right to file a case against you or make a police complaint.

  • There are rules for eviction

You have the right to evict your tenant on legal grounds or if you don’t want to rent out the property any more. However, a notice has to be given to the tenant in advance (usually a month) for eviction.

So, while renting a house creates an income flow, you have to be aware of these basic rules so that you can become an informed landlord.