The Indian Real Estate Sector for the past two decades has witnessed a healthy growth. It attracted many new investors to this sector. Generally, in Hyderabad people lease their Real Estate Investments such as Flats and Commercial Properties to earn good returns on their respective investments.
There might be challenges when renting out properties such as:
- Finding the right tenants for the Property.
- Avoiding any misuse of property such as Converting it for Commercial Purposes without our consent or utilizing it for any sorts of monetary businesses.
- Making the customers pay the rent on time and abiding by the rules of the housing society.
Though Investing in real estate and earning rental income is considered as one of safest ways, it is very important to do the following:
Planning and Research – Owners of the property have to calculate the potential expenses for repairs, painting and maintenance regularly to keep the property look totally fit and clean to attract prospective tenants. It is important for the owner to research the rental rate in that particular area and fix a more realistic price for the tenants to consider the property. Reaching out to the asset management companies for the Property valuation and DPR will also give you the insights in to the property and its prospects.
Advertisement – By listing your property online, by publicizing in the classifieds section of the newspaper and by keeping the property agents informed about your property, Owners can advertise their properties to find the right tenants. Now-a-days, Residential and commercial properties are being rented out very soon as there is a surge in the demand for both types of properties in Hyderabad. If the property is not being leased out quickly, It is better to reach for property consultancies or brokerage firms as they push your property to their clientele.
Verification – Before owners lease their property, verifying the identity of the tenants is a must. It is always advised to thoroughly check the background of your tenant. Checking with the Government Databases such as Aadhar or Police Background Verification check are the options available.
Rental Agreement and its Registration– After the verification, the next aspect is drafting the rental agreement. The rental agreement is generally written for an eleven month period, and the start and end dates are to be mentioned for sure. It must contain the terms and conditions which includes that the tenant will be responsible for any loss and damage to the property etc. It is always better to register the rental agreement as it will have a high validity than notarized in the court of law.
Security Deposit – Security deposit collected from tenants is essential to protect your property. Ideally, Tenants will deposit two to three months of rent. The security deposit can be refunded, once the tenant vacates the house or can be adjusted in the form of rent to be paid or as per the terms and conditions in the rental agreement.
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