Most people will accept that renting a flat or home in Bangalore or Delhi or any other city is not a simple task. As you may need lots of tasks to get it right like securing a rent agreement in Bangalore, understanding other stuff, clearing all the terms, getting a justified rent price, and more. To help you out and resolve this common issue we have made a checklist of necessary requirements you will need to follow.
● Rent you want: The first and foremost thing to keep in mind while renting a house is deciding the rent amount you want. Asking for the rent amount of your choice is always not an option for you as you have to go according to market prices. So, you have to come up with a price as per market rates which also satisfy you.
● Tenant Segment: Second thing you need to decide is the tenant segment, i.e. you have to decide that you want individual tenants or family tenants or corporate tenants or anybody can go on. Different people consider different segments like some people don’t prefer single people as a tenant and some don’t prefer families, it depends upon your choice and you should be clear about your choice from beginning only.
● Rental Agreement: It is the most important thing you should take care of. You should draft the rental agreement very carefully, it should include information like purpose of tenancy – residential or commercial, date of commencement of the agreement and its duration, the rent, mode of payment and advance rent paid, the circumstances when it is refundable, clauses like grounds of termination of agreement and other necessary information.
● Tenant Verification: It is a vital part of the tenancy procedure, essential to do a thorough background check-up of the tenant. The house owner is required to fill a verification form that is to be submitted to the local police station along with identification proof of the tenant. Then it’s the responsibility of the police to do background checks and to give the approval for the Online Rent Agreement.
● Costs to be borne: There are particular costs which house owners have to bear like brokerage cost, registration cost, stamp duty, the capital cost of furnishing the apartment. Plus if the future home requires any maintenance or repairs it will be the responsibility of the house owner to bear those responsibilities with you have duly signed rent agreement in Bangalore. If you are expecting that you don’t have to worry about all these things once you rent your apartment to someone then you are absolutely wrong because tenants need not be responsible for repairs and maintenance. It’s your capital investment, you have to take care of it.
● Tax: A second house is deemed to be let out and taxed for the notional rent it earns which is calculated by taking into account the municipal valuation and the fair rent of the property. But one positive point is that rent from the second house is taxed at a 30% standard deduction.