You often hear people say, “Nothing like living under your own roof!” This implies that owning your place is better than renting it, but it may not always been true or even affordable. A good landlord who does not bother you much and who is responsive is a blessing not many have. On the other hand, neither is a good tenant, who takes care of the house properly and pays the rent on time.
If you find yourself in a situation where you have to rent, you need to keep control of a few things. Here are some guidelines, which can be helpful and keep trouble away. Rental laws differ from state to state and hence the guidelines are restricted to some general laws.
You need to verify papers such as title deeds and electricity bills. If a coop. body is letting out, check its share certificates. Often an individual in search of a suitable apartment does not often realise the significance of such things nor does he get a chance to verify these details. A landlord on his part must do a quick reference check of the person requesting to rent the place and be specific and clear about the time period of the lease.
Rental agreement
There are several aspects in the lease agreement that you need to be careful about. However, three points which must be considered are license period, the consistency of the license fee through the entire licence period, clarity on costs associated with the house such as municipal taxes, society fees, charges.
Normally, the owner is expected to bear these costs. There should be a definitive clause regarding any deposits given initially prior to renting the hou-se. Care needs to be taken to ensure the landlord doesn’t retain funds from the deposit for supposed damage to premises. The usual term of the lease agreement is around 11 months with a notice of 2-3 months for either party to terminate the agreement. Notice clause is a must. The lease can be renewed every 11 months based on mutual consent. Also, there should be a clause that allows you to retain possession of the house till any dues that the landlord owes including deposit refunds are cleared.
Be clear about any clauses that denote the breach of contract and see you are well protected. Also, make sure there are other amenities like car parking, maintenance etc.
The writer is the CEO of bankbazaar.com