What are the precautions to be taken while LETTING OUT PROPERTY?

Answer 1

Precautions to be taken

"Most of the times, the commercial property is not given on rent but on leave and license agreement, which means that the landlord gives his property to the client for less than five years. If the property is given to the client for more than five years, then it is said to be given on lease," informs Sanjeet Narain.

In case of lease, you have to pay 5% stamp duty of the lease period. Whereas, in case of leave and license agreement, the maximum stamp duty to be paid would be approximately Rs 50, 000.

Here are few of the points, that are to be taken into consideration at the time of negotiations:

* Profile of the occupier
* Security Deposit
* Lease term
* Maximizing rent
* Escalation of rent at the time of renewal
* Maintenance cost
* Parking
* Signage
* Power availability
* Competitor clause
* Repairs and alterations
* Property tax
* Termination rights
* Lock-in period
* Force majeure
* Various indemnity clauses
* Sub lease clause

Answer 2

Live nearby so you can monitor what's going on and stop problems immediately. Long-distance renting is insane. What if pipes break and you don't know for days?

Carry liability insurance to cover yourself. Insist your renters carry renter's insurance. Get a credit check.

Make clearly defined and written down rules in your contract regarding pets, smoking, sub-letting, holes in walls, damage/vandalism, and number of occupants and vehicles.

Have clear procedures in the contract for late rental payments and non-payment. Talk to your lawyer about how to evict a deadbeat or renter who continually breaks contracted rules.

Take at least one month's rent in advance, which is applied to their cleaning fees at the end of their lease.

Hire a building inspector for an hour or two to fine-tooth comb the property for structural flaws or needed work. Get the property repaired before renting it. Have working relationships with a good plumber, electrician, roofer, Heating/AC company, and other tradesmen you may need to call, as well as a builder's supply company and lawn service.

Good luck!

Answer 3

Get a credit check on the people. I rented once to someone that trashed my house and stole the curtains.

Answer 4

There are tons of information on this site
http://www.free-legal-document.com/free-real-estate-contract-forms.html
and you should also read the section on landlords.
Hope it helps