What are the landlord’s rights and what precautions a landlord shall take before renting out a property?

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Real estate is a lucrative investment class. Not only it gives you capital appreciation gains but at the same time one can earn rental income from his/her property. Whether the property you own is commercial or residential, one can rent the property to earn stable monthly income. However, as easy as it may sound, there are always issues when it comes to renting out a property. What if the tenant does not pay the rent on time? What if the tenant mishandles the property? What if the tenant doesn't pay the utility bills on time? These are some of the questions a property owner is confronted with and therefore taking precautions at the beginning of renting out a property will make sure that the property is rented out to good quality tenant.

At the same time, a landlord enjoys legal rights as laid down by the Transfer of Property Act, 1882. These are ‘Right to timely accrual of lease amount’, ‘Right to know about the condition his property is in’, ‘Right to know of any changes that the tenant might want to make’, ‘Right to notify the tenant of an intention to increase the rent’, ‘Right to be informed of any disclosures’, ‘Right to get back his property on repossession’, ‘Right to repossess the property complete with all fittings and furnishings’, ‘Right to claim all the charges for supplies’.

Therefore, before one rents out or leases his/her property to a prospective tenant, make sure to go through the following document about ‘Precautions before renting out’ and ‘landlord's rights’.

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DIYs that can increase the value of your home

Every home once in a while has to go through some improvisations to increase the value of the house. It is more so if you are looking to rent or sell your property. Some physical changes and improvements can add to the appeal of your house and make it look more attractive. A fresh coat of paint, some new wood work inclusions etc. can be a good start to home improvisations. But if you are looking to do some value additions without spending much, you can try some of the DIYs listed below.

To make a house look more elegant and bright, light color drapes paired with white upholstery and white based furniture pieces are the key. So you can start off by changing the curtains. De-stain any old wooden pieces and re-stain them according to the color tone of the room. Few other economic changes would be to either steam vacuum the carpets or change over the carpets to lighter shades. Lighter shades of carpet make the house look big and elegant. Symmetrical patterns on the back-splash of the kitchen counter, stairway railing and verandah railing will make the house look organized and high fashioned. Keeping the kitchen counter top clear of unwanted items will make the counter seem big and attractive.

Bedrooms are the biggest appealing points when considering a home. Big beds with neatly laid white and fresh linens are biggest attractions. Symmetrical arrangements of the bed with side tables and other furniture pieces in the room gives the room a sense of space. At the same time, one must make sure that bedrooms are free from Mosquitoes and flies. That can be a real turn off for potential buyers or renters. There are variety of options such as Mosquito Net, Mosquito Killer Machine, Mosquito Repellent that can be used to eliminate mosquitoes from the bedrooms. Similarly white sheer curtains and drapes make the room seem brighter. You can customize the door and cupboard knobs by painting them all in a same tone of metallic shade. These metallic shades make the home appear custom made and add value to the property. Landscaping in the backyard or merely adding some greenery to your terrace garden will show detailed touch in the house. Every buyer or renter want to see a personalized touch in the house they are looking. Creating a specific purpose for each space in the house will show how each space can be efficiently utilized. Even if it is not utilized the same way as yours, it throws opportunities and ideas for much more use to the space.

Use of energy efficient fixtures and appliances adds as a huge advantage when trying to put the house on the market. Energy efficient incandescent light bulbs, power saving smaller appliances will be looked up as a huge saving on a long run. Adding additional storage outside of the house in the garage will also be considered a value addition. Leaving these additional storage half empty will make the storage space seem more and will help the buyer visualize how much the storage space can accommodate. Every home improvement once started must be completed to satisfaction. Refrain from taking bigger home renovation projects if the deadline seems too tight. Or hire a professional Home Renovation company which can provide you end-to-end solutions including modular kitchen, wood work, steel or iron doors, electric & bath fittings, flooring, walls, interiors, and exteriors. Consider the use of the particular update or renovation in the long run and foresee how it will add value to the house before implementing any changes to your home.

This is a guest post by A. Ramya

Mistakes to avoid when you rent out your apartment

A real estate report that was released recently highlighted the facts why Bangalore is considered as the most preferred city to stay in the country and also to invest in properties. While the real estate and property markets are down in cities such as Mumbai and Delhi, the report suggested that Bangalore has now a high rate of residential properties and the rate of rented apartments is going up with every quarter. Bangalore has a typical mobile population wherein people, young adults to be precise, come to the city to study and work on a temporary basis. This has resulted in the increasing numbers of rental accommodations like houses, flats and paying guests in Bangalore.

There are certain dos and don’ts that tenants need to keep in mind while finding a rent house in Bangalore so that the deal is profitable and stay is comfortable. However, as an owner also, one must keep in mind certain factors to avoid making mistakes. Grabhouse.com, India’s first broker free housing portal lists down the common mistakes that one can avoid as an owner of rented properties.

The first basic mistake that a landlord might make is deciding on a proper rental amount to charge. Apart from the basic rental charge, there are many additional charges that as a landlord, one might need to pay. These may include maintenance bills, water bills, etc. If the tenant has to pay these separately, you may keep them out of the rental charges. Else, make a list of the utility items that you need to pay and make it part of the entire rental charges for the tenant.

Make sure to conduct a background check on your possible tenants before you allow them to stay in your house. It eliminates the possible chances of inviting uncalled troubles if the tenant turns out to be someone charged with legal cases or similar other situations. It also helps you stay clear of the legal issues as a landlord. You can call up their workplace or any reference number to get a background check about the person or the family and then decide accordingly. If required, do not hesitate to check on your tenant after renting out the house also. Regular screening of the property and the house and a proper credit check of the tenant is important.

One basic rule of being a landlord is to be familiarized with the various legalities involving the laws of real estate sector and what it means when renting a house. Get yourself familiarized with the various aspects of the laws regarding renting out apartments to the tenants. You can consult a legal adviser specialized in this sector. Be sure about the policies involving security deposits, maintenance costs, and payment of rent on a mutually agreed upon day, parking and other community charges if any.

While preparing the lease document, make sure to include all the clauses pertaining to maintenance of the house, items provided by the owner, payment of rent on a particular day of the month, extra payment for the utility items, etc. Get the lease documents verified by your legal adviser, read it carefully and share it with your tenant. If your tenant suggests changes, get it verified by the adviser, come to a mutual agreements and then sign the paper, after you have read it carefully (again!).

Before renting out the apartment, make sure to have discussion regarding the revision and raising of rent amount annually. Discuss the percentage of raise and other associated charges properly to avoid ambiguity at a later stage.

Lastly, maintain a cordial relationship with your tenant. It will help in having the same tenant year after year and will develop the trust. Ensure that you are there to help them if they need you and offer to fix any damage in the house immediately that has not been caused by them.

This is a guest post by Shanaya Mehta