Buyers who look for investing in a second property usually aim to give it on rent in order to make some additional income every month. So, if you are one of those individuals interested in investing in a property to give it on rent; then you should keep in mind that giving a house on rent is not an easy task.
You should be extra careful when renting out your property as the process includes promoting your home, paperwork when renting and duty towards renters. In order to make the renting process a smooth one, you should adhere to the below-mentioned points:
- Deciding on the rent amount that you want to earn from your tenant is the first step to follow. Prior to getting the amount fixed, you should do a thorough market research about the existing trend of rent. Set the rent basis on the trend, as setting it higher than that would make it hard for you to find a tenant. In case you want to set a higher amount of rent than the market rate, make sure that your property has those additional amenities that can justify the rent.
- Once you have set the rent amount, the next thing that you should focus on is the rent agreement. It is suggested that you make a legitimate contract when letting your property on rent. Make sure that all the terms and conditions are properly explained in the agreement. The contract agreement will make the process perfect for both property-owner and renter as it will combine both the parties, which they jointly agreed upon.
- If you want to give your property on rent, you should market it well to attract the renters. You can either follow the traditional process of ad via newspaper or you can opt for the modern process of advertisement by uploading your property details with photographs online.
- You can hire a broker to complete the process of finding a tenant. The broker can help you not only by finding the tenant but will also help you by creating the legal agreements and by performing the background verification of the tenant.
- In case you are giving a fully furnished property on rent; then make sure that you check the condition of furniture items and fixtures beforehand. This will help in preventing any issues at a later stage in case you levy a penalty on the tenant for damage.
- Another most important thing that you should get done when giving your property on rent is to get a police verification done to check the background of the tenant. This will lower the possibility of giving rent to a person from a criminal background. In order to get this done, you will have to fill the verification form and submit the same to the police station along with ID of the tenant. You can get the form downloaded from the website of the state police department.
So, if you have purchased a property in Mohali, Chandigarh and want to give it on rent; then follow the above-mentioned tips.