Category: Renting Property

A Landlord’s Guide: 4 Things To Consider While Renting Out Your Apartment

As buying land or property is typically an expensive affair, renting an apartment becomes the preferred option for large sections of people, be it the newlyweds or those moving out to live closer to a workplace. In an atmosphere where affordable housing is in high demand, renting out your apartment is beneficial to you. So if you are looking to do so, here are the four important things you should consider

I. Offer a market-competitive rent

Deciding on the rent you will charge is important. Renting out your apartment is a competitive affair. You will need to be aware of the average rents being charged in your area. Once you’re aware of the number, you can set your rate depending on more or less what you can offer to the prospective tenants.

Consider quoting a reasonable rate. If you quote low, you may end up with many tenants, but at an opportunity cost. On the other hand, if you quote too high, you risk not getting approached at all.

II. Draft a water-tight, but fair, rental agreement

There are just a handful of things you need to know about laws, including contracts and insurance. The laws are more or less balanced. They’re neither tilting towards the owner nor the tenant. Verification is made mandatory for signing the rental agreement.

Take professional help if required in drafting the rental agreement. It will make you as well as your tenants confident, as it will protect the interest of either party. Ensure that the agreement contains such information as the description of the entire property, facilities provided, the date on which the rent should be paid every month by the tenant, a clause related to termination, security deposit, maintenance charges, and TDS.

Add anything else you think is important, and state explicitly. Any difficulty in understanding the agreement should be avoided.

III. Ensure you have all documents ready

One of the three important documents, namely lease deed, rental agreement, and license agreement will come in to use while renting out your apartment. If you’re renting out your apartment for a period of fewer than eleven months, you will require the rental agreement. For a period of more than eleven months, a registration is necessary. You then need to issue a lease deed. The expenses will be shared between you and your tenant. The local police should have a copy of all the necessary tenant details.

IV. Get the house ready for the move-in

Renting out your apartment involves a certain amount of commitment on your part as well. It’s your responsibility to ensure that your tenants are provided with a healthy and safe living environment. Consider having the entire house cleaned up and checked for electrical safety. Ensure all leaks and breaks are fixed.

What is more is, you have to provide your tenants with a signed receipt for rent payments. Lastly, at the time of eviction, it is important to serve a notice period (by both you and your tenant.) This notice period should be specified in your rental agreement. Again, this helps safeguard both the parties in the agreement.

As a landlord, these are the aspects you need to address. Eventually, we are sure your apartment will be a popular choice among tenants.


Things to keep in mind when looking to rent a flat

There are many things one must consider before choosing to rent a flat in any apartment building. We, at Apnacomplex, list out the things we think you should keep in mind before renting that flat.

  1. Budget – Always consider your budget carefully before deciding to take up any flat on rent. The things to consider would be; gross rent paid, deposit, maintenance, and upkeep. All those things need to factor into your decision to rent out a flat.  Generally, things work up to 1.2x of the gross rent. So assuming your rent to be 10000 per month, you’ll eventually end up paying 12000 per month all things included. Once you know what the rent of your new flat will be, factor in your household income. As a rule of thumb, it is ok to spend 30% of your household income on rent in any given month. Once you have your budget sorted out, looking for a place can be much easier and less time consuming.Know your budget
  2. Broker Vs. No broker – getting a local broker can be a good way to increase your awareness of apartments in your area of choice. But then there’s the dreaded issue of brokerage, the one thing we never wish to pay (Trust me, I’m regretting paying brokerage as I write this article). Going on online sites can be a healthy start too, but what you see is not always what you get with online real estate listings, so it might take you longer than anticipated when you take that route. The only trait you’ll need is patience and you might just find the right fit searching online. In our experience, some of the best deals are available on classified newspapers and online portals (Please check https://www.apnacomplex.com/classifieds). You’ll be surprised at the deals you find there.Consider a broker carefully
  3. Be specific – If you’re experienced in renting out a place, you’ll probably be aware of these factors more or less, if not, then here’s the stuff that you’ll need to make that house a home.
    1. Check the amount of noise in that area – having religious institutions nearby might be good for your piety but can have a disastrous effect on your sleep schedule.
    2. Check if household services are available in that area – From dry cleaning to housekeepers, there are many areas where these basic services are difficult to come by, so ensure that you’re not making your life more difficult in the future.
    3. Check power outage cycles – some areas are notorious for a number of power cuts that occur there. So make sure your apartment provides for power backup or there are limited power outages there.
    4. Check water limitations – Water is considered the element of life, so maybe having a check on whether your apartment is equipped with rainwater harvesting or has some water facility to meet demand and supply will benefit you. Else you won’t have to option but to literally air your dirty laundry.Check if there's water in the flat
  4. Check the contract – Contracts are mandatory if you’re taking a flat on rent legally. Yes, we’re putting it that way because taking a flat legally benefits you more than the landlord. Here is a snapshot of things you need to look out for while taking you flat on rent:
    1. Contract dates – check when your contract starts and ends. Yes, you’ll be surprised at how many people miss this.
    2. Termination clauses – This is the most highlight-able area of your rental contract. Check to see if “My sister wants to come and stay” is a valid reason. Else, you can’t be evicted if you pay your rent on time.
    3. Penalties – Generally most flats have a one month rent as a penalty from their deposit. But make sure you’re aware of that clause in your contract.
    4. Repairs – Most contracts are segregated into major repairs and minor repairs. Major repairs are undertaken by the owner and minor repairs are undertaken by the tenant. So be sure to look out for that.
    5. Guests – Check to see if there’s any limitation on guests allowed. Contracts generally mirror society rules on such issues, so if your society limits guests then it’s better that you’re aware of what needs to be done.
    6. Rent renewal – arguably the most important part of your contract, check on the terms of a renewal. If there’s no renewal clause, push for it to be added in. Assuming you’re not going to move out of the house for the foreseeable future, it’s unjust to randomly have your rent increased on renewal. In our experience, most landlords settle for an annual 5% increase in rent year on year.
    7. Get everything in writing – Most landlords make blanket promises when giving out their house, make sure you get these promises/guarantees in writing, taking someone at their word can be good for relationships but remember, you’re looking for a house, not a friend.Contracts are important - Read carefully
  5. Inspect your flat – A lot of issues with your apartment can be hidden from a simple look. Inspect these things properly before deciding on whether or not to take the place.
    1. Pipes – make sure there are no blockages and the pipes work smoothly.
    2. Electrical fittings – See if the lights and fans work properly. It’s common courtesy for your landlord to provide these. Else, make it clear on who pays to fix it.
    3. Faucets and shower heads – Sometimes these basic fittings don’t work and nobody checks it out before renting out a place and moving in. Be sure to check these facilities in your prospective flat.
    4. Cracked windows or broken walls – If you can live with a cracked window or a broken wall, then it’s still fine. But make sure you keep photos of these issues before taking up a place. Those photos will come in handy when you’re vacating, trust us on this.Inspect your house carefully
  6. Rules and regulations – Although your landlord may be okay with these things, sometimes the housing society can have a lot of issues with some of the things you want. For example, you might not be allowed to keep pets in your house or you might not be allowed to throw a party. These are things that you should ideally check beforehand. It’s wiser if you ask the landlord these things than asking the society directly. (In Mumbai a lot of Societies require you to give an interview before being able to take a house on rent, so additional caution is advised there)Pets are people too
  7. Negotiate – A lot depends on who your landlord is and whether or not they’re ready to negotiate on the price. If it’s a person who owns a lot of property and runs this as a business, you’re going to find it harder to negotiate a better deal for yourself. If it’s an individual that is just looking to supplement their household income, play hardball, you’ll come out on top. Most landlords also practice up-selling their houses, so negotiating could make your deal sweeter than you think. Keep your poker face while negotiating
  8. Check if your apartment society is smart enough – Last but not the least, check if your prospective apartment complex is listed on http://www.apnacomplex.com by searching for it. If it is, then you’ll notice how simpler your life becomes once you live there. If not, then there’s always something you can do about it; like referring the software to you society or searching for a different apartment altogether.

What are the factors that influence property valuation in India?

Property Valuation Over time, property investments offer handsome returns but the initial investment is always heavy on the pocket. Before buying the property, one should try to evaluate a property in every possible way. Always try to look at the appreciation rate of the property after given number of years. Let’s have a look what are the factors that affect the appreciation rate or the property valuation in India:

Location – Location is the prime factor that affects the property valuation rate in India. Properties based in commercial areas seem to have a higher appreciation rate in comparison to properties located in residential areas. If your property is close to a major IT hub, it is obvious that the rentals, demand and price for your property goes up since people working close by will have the desperate need to always rent or buy the property.

Properties located in the heart of the city surrounded with good infrastructure, schools, hospitals, markets, malls are more expensive than the properties in upcoming and under developed areas. Where would you like to invest and what seems to give you double returns is something you need to ponder upon. Talk to local property dealers, developers from a very developed part of the city and an upcoming area. Compare the property appreciation rate trend in both areas and then make a decision.

Connectivity – Connectivity is another major reason that affect the property valuation in India. Good infrastructure such as airport, metro, flyovers and roads, if are in near proximity to your property, you can expect your property rate to appreciate. When planning to buy properties in under developed areas of the city, always research about the nearby infrastructure that is yet to be built. If you invest in an under developed area, which has some great infrastructure plans in next five years, you may be looking at a whopping rate of appreciation for your property.

Construction Quality – The quality of construction to build a particular property is very important in valuation of a property. The material, design, layout, architecture and the longevity of a building all add to the valuation of a property. Buying a property from a known and reputed builder like Sobha, Lodha, Prestige, DLF who are known for their construction quality will always lead to a higher appreciation rate for your property. In case, you are buying property from one of the local builders, be very sure about it since you don’t want to spend on repairing etc. due to low quality of construction leading to a depreciation in your property rate. Look at some of their prior projects, talk to buyers, take feedback and then take a decision.

Amenities – Presently, common amenities such as pool, gym, parking, garden area and community centre all add value to your property. The urban buyers don’t just look at square feet area of the house anymore, they also want amenities, which makes their life convenient and comfortable. A property coupled with amenities will obviously appreciate more than a just a regular property with no amenities. If you are looking at a property to live in yourself, obviously amenities become an essential but in case you are just looking for a second investment in property, you may want to forego the amenities if the infrastructure next to your property is superb.

Interiors and customization – Good interiors like high quality wood work, top quality bathroom fittings, superior quality paint and top–end flooring etc. add value to your property. Some customers modify their regular kitchens into modular kitchens, a closed living room is customized into an open living room cum dining space, which obviously appreciates the value of the property. The properties with customized rooms or modern fittings obviously appreciate at a higher rate than the regular properties.

Evaluate all the above mentioned factors and then take your property investment decision; after all it’s your hard earned money and you don’t want to just give it away like that.

Best of luck!


How To Increase Property Value Of Your House

Who says you have to break the bank and completely renovate your house to get the most value while selling or renting it out? A few fixes and a couple of minor changes can greatly increase property value of your house.

Here Are A Few Ways To Increase Property Value Of Your House

Clear Away Clutter

De-clutter your home to allow your buyers or tenants to feel free as they walk around your house visualizing their things in the rooms. Give away or dispose your old clothes, books, papers, appliances, toys, art and other unwanted items. Pack the rest in boxes and store them in the attic.

A Fresh Coat Of Paint

The best thing you could do to add value to your house is to give it a fresh coat of paint. Select light neutral colors, and stay away from dark shades as they make the rooms look smaller. Do not forget to paint the exterior too as your buyers or tenants will be seeing the outside first. After painting, leave your walls bare by not re-hanging too many of your old photo frames or art pieces.

Spic And Span Floors

Clean your floors until they shine. Replace old and worn out carpets and rugs. Buff and polish hardwoods. Do not replace flooring as the buyer might most probably have different tastes. For damaged vinyl floors put down some vinyl stick-on squares in light colors to make them less distracting.

Tidy Up The Curb

Cleaning up your curb is a sure way to attract more buyers or tenants. Replace your old mailbox, put up new street, clean the windows, and get the front door polished. Trim any shrubs that are unruly, mow your lawn, and remove unwanted objects from your yard such as tools or construction materials. You could add a pot of flowers by the front door or plants flowering plants along the walk. Don’t forget to wash your driveway and the walk.

Cabinets And Closets

Your prospective buyers/tenants are very likely to inspect all the cabinets and closets. Make sure the doors are well oiled and function smoothly. Paint or polish your cabinet doors. Use white or other light neutral colors. Do not forget to replace or polish the hardware too. Use simple and relatively modern hardware like brushed nickel.

Install New Lighting

Replace any damaged or old fashioned lighting fixtures. Go for energy efficient lighting throughout the house, and increase the wattage in dark rooms.  You want your buyers or tenants to see your house more clearly. A well lit room shows that you are transparent in your dealings as you have nothing to hide about the house.

Energy Efficient House

Upgrade your appliances to newer energy-efficient ones. Go green by installing a solar water heater if you have unobstructed sunlight throughout the year. For electric heaters, switch to tankless water heaters as there are more eco-friendly and cost-effective. Replace all outdated, loud, or broken ceiling fans as they can be an eyesore.

A small investment in changes such as these can make your house more appealing to prospective buyers, and bring in more revenue to you as well.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Things To Consider While Renting Out Your Apartment

Renting out your apartment at a time today, when more and more people are opting for homes that don’t burn a hole in their pocket, is beneficial to you. As buying land or property is typically an expensive affair, taking a house on rent becomes the preferred option for large sections of people, be it the newlyweds or those moving out to stay closer to the office.  Renting out your apartment is not a daunting task per se, but you will greatly benefit by taking some important aspects into consideration.

Here Are The Things You Should Consider

What Rent Should I Charge?

Deciding on the rent you will charge is important. Renting out your apartment is a competitive affair. You will need to be aware of the average rents being charged in your area. Once you’re aware of the number, you can set your rate depending on more or less what you can offer to the prospective tenants.

Consider quoting a reasonable rate. If you quote low, you may end up with many buyers, but at an opportunity cost. On the other hand, if you quote too high, you risk sitting by yourself for most of the time.

I Have Fixed The Rent. What Do I Need To Know About Agreements?

There are just a handful of things you need to know about laws, including contracts and insurance.

  • The laws are more or less balanced. They’re neither tilting towards the owner nor the tenant.
  • Verification is made mandatory for signing the rent agreement.
  • Take professional help if required in preparing the rental agreement. It will make you as well as your tenants confident, as you both will be well protected from any unfair or illegal activities.
  • Ensure that the agreement contains such information as the description of the entire property, the date on which the rent should be paid every month by the tenant, a clause related to termination, security deposit, and maintenance charges.

Add anything else you think is important, and state explicitly. Any difficulty in understanding the agreement should be best avoided.

Got It. What Documents Will I Need?

Any one of the three important documents, namely lease deed, rental agreement, and license agreement, will come in to use while renting out your apartment.

  • If you’re renting out your apartment for a period less than eleven months, you will require the license agreement and lease deed.
  • For a period more than eleven months, a registration is necessary. The expenses will be shared between you and your tenant.
  • The local police should have a copy of all the necessary tenant details.

Back To The Basics

Renting out your apartment involves a certain amount of commitment on your part as well. It’s your responsibility to ensure that your tenants are provided with a healthy and safe living environment. Consider having the entire house cleaned up and checked for electrical safety. Ensure all leaks and breaks are fixed.

Taking care of these aspects will make your tenants’ choice easier.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Getting An Apartment On Lease Vs Rent

Buying an apartment is a costly affair, especially in large towns and cities. This leaves most people with two options of getting an apartment: rent or lease. Although the two terms are sometimes used interchangeably, they are primarily different. Let’s take a look at the differences, and see which option looks more promising in the lease vs rent situation.

Lease Vs Rent: Which One Is Better?

Reasons For Renting An Apartment

No Fixed Duration Of Stay

When you’re taking a house on rent, no set period of stay is established. If you’re searching for a dream house and need some time to purchase it, an apartment on rent will suit you better. When you think you’re in a position to buy the house of your dreams, you can vacate the rented house and end the rental agreement.

Also, if you’re continuously on the move because of either personal or professional reasons, you will find that taking an apartment on rent gives you greater leg room, as you will not be bound by an agreement to complete the established period of stay.

Rental Agreement Stays The Same Until Changed

The standard rental agreements hold true on a month to month basis. The agreement can be altered by the owner and tenant at the end of a thirty-day period, subject to rent control laws. Typically a 30 days’ notice is required for any change in the agreement. If no change is made to the agreement, it stays the same and gets automatically renewed for the next month.

Offers Flexibility

Month-to-month agreement and the requirement of a 30 days’ notice period gives you flexibility. You can prepare to vacate the house by giving the owner a notice and not worry about breaking the agreement. On the other hand, the owner can hand you a notice and ask you to vacate as well.

Reasons For Leasing An Apartment

Security Of Stay Is Ensured

When you take a house on lease, the duration of stay is set, such as 6 months or 12 months. During this period, the terms of agreement need to be upheld by both you and the owner. That is, no change in the agreement will be permissible until the lease expires.

Paying The Lease Amount And Vacating The Property

According to the agreement, you will pay a fixed amount to the owner every month. You will not be able to vacate the property without breaking the lease. And if you plan to vacate the property, you need to ensure that the entire lease amount is paid. Defaulting on making the entire payment will make you liable in a court of law. You can however ask someone to take the place if you vacate, and pay the remaining lease amount.

Staying On After The Lease Period

You can stay on at your leased residence if you renew your lease. Additionally, if the owner is willing, and if you’ve been able to gather the requisite amount, you can buy the property as well.

The debate of lease vs rent is, in the end, a highly subjective one. Choose the rental arrangement most suited to your current and future plans in order to ensure a worthwhile investment.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!