Feb 21 2015 : The Times of India (Mumbai)
In addition to police verification, a deposit refund and exit clause should be captured in the rental agreement to avoid future problems
Mumbai's rental yield ranges anywhere between 1 to 4 per cent. Considering the current price trends, many senior corporate employees prefer to lease an apartment in areas like Cuffe Parade and Bandra west, where the rental yield ranges anywhere between 1.5 to 2.5 per cent. “People generally look for rental locations that provide ease of travel, low rental values and offer good infrastructure. Locations like Andheri, Goregaon, Wadala, Parel, Chembur that offer connectivity to all parts of city, could be a good bet for someone who is considering to live on rentals,“ points out Gaurav K Shah, director-marketing, Ravi Group. People who rent flats from buyers, have a list of things to take care of but what about the buyer who rents out the flat to the tenant? His risk is higher as he has worries include timely rent payment, proper maintenance of the house and getting the house vacated when the need arises.
Rajesh Neelkanth, owner of a premier 2-BHK project in Kharghar had rented his fully-furnished flat to a tenant. After the first agreement term, the tenant convinced him to renew the agreement and work on the basis of trust and then it was a nightmare for Neelkanth to get his tenant to vacate his property. “Choose the right property and agent, and renting can then be easy. Before you make an offer, quiz the agent about fees for references and credit checks,“ mentions Shah. “Police verification is a must. The owner should make sure that all the essential legalities are met with such as registration and NOC from the society. Most standard agreements cover key clauses wherein, the deposit refund and exit clause need to be carefully captured to avoid future risks.Also, clauses with regards to damages to the apartment and agreed terms around it should be taken into consideration,“ says Om Ahuja, CEO Residential Services, JLL India.
Hiral Sheth, directormarketing and sales, Sheth Creators, adds that the lease agreement between the tenant and the owner should clearly mention the minimum lock-in period (the minimum stay duration) such as six months, one year or three years.
PHYSICAL INSPECTION OF FLAT
Cross-check the furniture and fixtures including plumbing, electrical and sanitary fittings.
Clauses of annual and monthly maintenance can be a big issue of dispute between owner and tenant.So, a tenant should be well-informed about conditions before renting.