Archives: September 19, 2013

ApnaComplex
September 19, 2013

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!

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ApnaComplex
September 19, 2013

Which Is Better: Buying A Ready To Move House Or One Under Construction

Choosing between a ready-to-move house and an under construction property can be a tough decision. It’s highly advisable to consider your personal need, available finances, and the pros and cons of both options before you go property hunting.

Buying A Ready-To-Move House

Pros

You Can Move In Right Away

Buyers can occupy their newly purchased property as soon as the payment is made and the registration is completed.

You Get What You See

Plus, there are people already living in the housing complex. Getting their feedback about the builders, the housing complex, the locality, and other amenities, helps make the decision easier. You also get an idea about your future neighbors.

Cons

How Well Is It Constructed?

You have no idea what material went into its making. You only have the builder’s word about the quality of construction.

They Cost A Lot More

Ready-to-move houses cost about 25 % more than under construction houses.

More Paperwork To Deal With

Ready-to-move houses involve a lot of legal work and transfer documentation.

Outright Payment

All the payment needs to be made upfront.

Buying An Under Construction House

Pros

Cheaper

Under construction houses are significantly cheaper than ready-to-move houses by a margin of 20 % to 40 %.

Low EMIs Or Payment In Stages

Initial investment is low, and down payment involved for a loan is usually 20% of the property value. In case of payment in cash, the buyer has the freedom to pay in installments that are linked to the construction.

Higher Returns

Since under construction properties are generally in the non-core parts of the city, the price significantly appreciates as the area develops.

More Options

New projects keep coming up in various locations, so potential buyers have more choice in terms of location, price range, or even the floor on which they want a flat.

Cons

High risk

Buyers stand the risk of losing their money if the builders fail to complete the project due to several factors such as cash crunch, high raw material costs, or high interest rates.

You May Not Get What You Were Promised

The carpet area after completion is usually 70 % of the super-built area. Many extra facilities like parking areas, swimming pool, and gyms may never materialize.

Risk Of Low Returns

The market outlook may change during the construction period, and you may lose the advantage of high returns if the locality doesn’t develop as foreseen.

Delays In Completion Time

Land disputes, cash crunch, incomplete permissions from authorities can result in frustration as the construction can get delayed by as much as 1-2 years.

Low Quality Construction

Doors, window fillings, electrical sockets and switches may turn out to be of cheap quality. Plumbing may be done in a very inefficient manner in order to save pipe costs, and other facilities like children’s playing area, gardens, gym, etc., may not be up to the mark.

Loss Of Tax Rebate

Income tax benefits can be availed only after the construction is completed, and you obtain a possession certificate.

The ultimate decision to go for a ready-to-move or an under construction house rests with the buyer. Choose the option that gives you the maximum benefit.

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!

1 Comment on Which Is Better: Buying A Ready To Move House Or One Under Construction InBuying Property Real Estate
ApnaComplex
September 18, 2013

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!

1 Comment on Getting An Apartment On Lease Vs Rent InReal Estate Renting Property
ApnaComplex
September 18, 2013

Tips For Selling Your House – What Every Seller Should Know

You’ve decided to sell your house, and are now looking for ways to market it. Or you have already put your house up for sale, but somehow you aren’t receiving as many phone calls and visits as you expected. The reason for the lack of buyer interest may not be the price you are quoting, as is often assumed. Here are a few useful tips for selling your house.

Top Five Tips For Selling Your House

Get Online

The internet offers plenty of space for home-sellers like you. All you would need to do is get on the web, identify popular real estate websites, and post your ads on them. The use of internet is all-pervasive, and the buyers aren’t missing out. The convenience of searching and identifying properties over the web is unparalleled. List your property, and let the buyers find you.

But Don’t Forget the Sign Boards

Make the house you have on sale more visible. One of the simplest and most effective ways of achieving more visibility is by putting up a large, visible board simply saying: House on Sale. People walking by the house will immediately know of it, and interested buyers may even walk right into your house to speak to you about it. Now, isn’t that attracting more buyers?

Go For Effective And Cheap Marketing

Who says you have to depend on marketing professionals to increase market exposure? You could do it yourself. After posting ads on websites related to real estate, send out emails to your contacts who might be interested or who might know people who will be interested in your property. Chances are that they will forward the email to the right people. Let your emails connect with the buyers, so that they feel more confident about visiting your house to consider buying it.

Don’t Forget The Print Medium

The Internet is not replacing newspapers and magazines, at least not in the near future. So it would be wise to use some space in your local newspaper for marketing your house. It need not be anything lengthy or flashy. Keeping it clean and simple is the way to go, and you’ll suddenly hear that phone ringing a lot more.

Make Them An Offer They Can’t Resist

People love discounts, deals, and offers. If you can provide a limited time offer, you will likely increase the number of people calling you up to inquire about the house. Get creative when you come up with offers. You could either directly reduce the price of the house, or help the buyer in financing. Irrespective of what you offer, if you show the buyers that you’re willing to do something extra, they may very well start flocking to your nest.

Besides the above tips for selling your house, make effective use of the power of word-of-mouth. Tell your friends, relatives, colleagues, and anyone else about your house being on sale. It will certainly attract plenty of buyers, and will help you make that sale.

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!

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ApnaComplex
September 17, 2013

Real Estate Negotiation Blunders That You Should Avoid

A simple ignorant remark can ruin a very promising deal. Keep the following points in your mind while making a real estate negotiation in order to avoid making costly mistakes.

8 Fatal Real Estate Negotiation Blunders

Failing To Understand The Seller

Looking at the deal from the other side of the negotiation table can reveal vital clues that can be used to leverage the deal in your favor. Try to understand the urgency of the seller to dispose the house. Maybe the seller has certain financial pressures, or is moving to another city. If it’s a developer, s/he might need to sell certain number of units in a fixed time.

Failing To Understand The Market

Many buyers do not spend enough time to study the market and find out the prices of comparable homes. Most information is readily available online. Local real estate blogs are a valuable source of information. Talking to people who live in and around the property you intend to buy or visiting a local broker will also give you an insight into current market trends.

Revealing More Than You Should

Details like whether you want to pay for the house in cash need not be revealed, as this gives the seller an idea about your purchasing power. Your aim should be to ask as many questions as possible, while giving away minimum information about yourself.

Making Your Best Offer First

Some buyers think it wise to make their best offer first, and let the seller come to terms with it. Throwing away all you’ve got leaves youwith nothing to fall back on.

Not Having Other Options

Not having other options to look into makes you look desperate. On the other hand, letting the seller know that you are looking at other properties gives you an advantage.

Negotiating On The Phone Or Email

Trying to close the deal on the telephone or through email normally works out in the seller’s favor. The most effective way to secure a good deal is to do it face to face, as it gets your voice and your body language into the equation.

Making A Specific Offer

Sticking to a specific number could backfire and close the real estate negotiations altogether if the number is considered too low. It is wiser to present a range of figure instead. For example, Rs. 35 lakhs to Rs. 37 lakhs.

Getting Carried Away

Some buyers get so carried away in the negotiation game that they forget that they are there to purchase a home, and not beat the seller. If you like the property but the seller won’t go further down, consider whether the price fits into your budget. If yes, secure the deal!

Real estate negotiation is an art that requires careful consideration of a few simple factors, which if followed, can results in great deals.

Have more tips to share with us? Let us know in the comments below!

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!

1 Comment on Real Estate Negotiation Blunders That You Should Avoid InBuying Property Real Estate
ApnaComplex
September 17, 2013

Real Estate 101: Things To Know About Khatha Transfer In Bangalore

A khatha is an account maintained by the Bruhat Bangalore Mahanagara Palike (BBMP), which contains details of a property such as the owner’s name, property dimensions, and tax details. A khatha is a prerequisite for selling the property, applying for a bank loan or for obtaining a business/building license.

When do I need to make a khatha transfer in Bangalore?

The need to transfer a khatha arises when there is change of ownership of the property in case of the death of the owner, sale of property, execution of a will or gift deed.

Where and how do I get a khatha transfer done?

A  filled-in “Application for Registration/Modification of Khatha” form needs to be submitted at the respective BBMP office along with the following documents- the title deed, tax paid receipts, khatha details, receipt of improvement charges paid, National Saving Certificate for Rs. 200, Death Certificate of owner of property (in case of death), and a legal heir affidavit .

What is the fee for khatha transfer?

Applicants are required to pay a 2% administration fee on stamp paper value, and also an improvement fee of Rs. 100 per sq. yard in new areas, and Rs. 50 per sq. yard in older areas.

The procedure for khatha transfer in Bangalore

The following guidelines should help you through the process of khatha transfer in Bangalore.

  1. Get a copy of the sale deed attested/notarized: This can be done at any notary’s office in Bangalore for a nominal fee of Rs. 100.
  2. Get an Encumbrance Certificate: You will be required to submit a copy of the sale deed along with the EC application form. The certificate is usually issued within seven days.
  3. Get a khatha registration/transfer form: The form can be downloaded online from the BBMP website. Alternatively, it can be obtained from the BBMP office for a fee of Rs. 10.
  4. Submit the filled-in application: The filled-in application form, along with all the required documents need to be submitted at the BBMP office. Make sure that you get back the duly stamped acknowledgement card that is part of the application form.
  5. Status of your application: It normally takes about 15 days for your application to be processed. In case you do not receive any intimation from BBMP within two months, you can file an RTI regarding the status of your application.
  6. Property Assessment by officials: Revenue officers from BBMP will visit your site for property assessment. They will measure the plot, and value the property.
  7. Payment of registration fee: BBMP will issue a demand note indicating the registration fee to be paid, which is generally 2 % of the value reflected in the sale deed.
  8. Final registration: Within 10-15 days of the payment of registration fee, you will receive a notification for payment of property tax as assessed by the revenue officers who visited your property. The khatha extract will be issued only on clearing the tax liabilities.

Make sure you have all the documents and applicable fee ready before you apply for a khatha transfer in Bangalore in order to save unnecessary delays, and hassles.

Have more information to share with us? Let us know in the comments below!

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!

2 Comments on Real Estate 101: Things To Know About Khatha Transfer In Bangalore InBuying Property Real Estate
ApnaComplex
September 14, 2013

Selling A House – A Look At The Paperwork Involved

Get your papers in order if you’re planning on selling a house. It’s very important for the buyer to establish the authenticity of the property, and to know what, or where, he’s getting into. So reach out for the documents listed below, and keep them ready.

Important Documents For Selling A House

  1. Sale Deed: A sale deed is required for the purpose of tracing the ownership of the property. You’ll need the original sale deed from the previous owners of the property as well, to confirm its authenticity. Possessing a sale deed also means that the property is in your name, and that you’re authorized to sell it.
  2. Letter of Allotment: The Letter of Allotment contains all the details regarding your property. It was given to you by the relevant authority when you purchased this property. It is of great significance to the buyer since he can show it to the bank in order to avail a loan. The letter will indicate to the bank the sum that they can lend if the loan is approved.
  3. Documents From The Society: You will need the permission of the housing society or any relevant authority to sell your property. Here’s what you need to do. The previous and current sellers would have made payment to the housing society or development authority. For that, they would have received original stamped payment receipts. Collect these receipts. As being part of the housing society, you would have received a share certificate. A copy of that certificate should be kept ready, along with a No Objection Certificate (NOC) that says it’s okay to transfer the share certificate to the prospective buyer, if applicable. You will also need to obtain a certificate from the society which certifies you as having made all the required payments to the society. Collect, fill up, and sign the membership transfer form from the society.
  4. Encumbrance Certificate: To ensure that the land you’re selling does not have any legal dues, an encumbrance certificate needs to be produced. It shows the prospective buyer that the house he or she is buying has a clear and marketable title.
  5. Sanctioned Plan: The Sanctioned Plan sets down the plan of the apartment building, including such factors as the height of the building and floor area ratio. The buyer will feel secure after receiving the sanctioned plan, as he or she will know how the property that he is purchasing is going to look like.
  6. Sales Agreement: The sales agreement serves as a contract under which the ownership of the house is transferred from the seller to the buyer in exchange for a specified sum of money. It basically obligates the seller to sell according to the agreed terms.

What If Any Paperwork Is Missing?

Selling a house is impossible if you have misplaced any of the prerequisite paperwork. Your only option is to file for registration and pay any outstanding amount. The housing society will have a duplicate copy of the share certificate if the original copies are misplaced. In addition to a confirmation by the housing society, an indemnity bond should be furnished if the sale deed has been misplaced.

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!

Leave a comment InReal Estate Selling Property
ApnaComplex
September 13, 2013

Real Estate Negotiation Tips – Eight Tips That Every Buyer Must Know

With a lot of money at stake, every buyer would want to get the best deal possible in the market. Here are a few helpful real estate negotiation tips to help you increase your success rate on the negotiation table while closing the deal on your dream house.

Eight Effective Real Estate Negotiation Tips

Plan Your Budget And Know Your Upper Limit

Once you know how much you can afford to spend, it becomes easier to bargain for the best deal. Plus, knowing your upper limit will stop you from making an offer that would hurt your finances later.

Research The Market To Know Where You Stand

Find out the prices of similar properties in the local market. Meet local brokers and get an idea about how much you can quote for a particular property. Knowing the present market scenario helps you counter the seller’s prices with a reasonable and fair offer.

Put On Your Poker Face

Remain calm and neutral. Do not reveal your personal limit, your interest in the property, or your borrowing capacity. Try not to get excited about the property as this gives the seller an idea about how much you like the house.

Know The Seller’s Reason For Selling

Knowing why and how quickly the seller wants to dispose the property will give you a lot of leverage in the negotiation process. Also, check for how long the property has been up for sale, and if there are any problems with the property.

Start Low And Never Make The First Offer

Let the seller quote a price before making your offer. Always start at 15 % to 20 % lower than the seller’s expected price. Be moderately flexible, and gradually come down to about 7 % to 8 % lower than the seller’s initial price.

Walk Away Politely If Negotiations Fail

If negotiations fail, or you cannot secure a deal that falls within your budget, make your best offer and walk away. Do not make the mistake of getting stuck in a deal that you’re unhappy with. Often the vendor will get back to you if he or she doesn’t find a better buyer.

Be Armed With Cash Or A Pre–Approved Home Loan

Developers are always keen on selling inventory. If the seller knows that you are serious about buying the property, he or she is more likely to come down to your terms to seal the deal as quickly as possible, before you go to somewhere else.

Let The Seller Feel Happy Too

There will always be multiple items to negotiate over. Negotiate primarily on the price, and let the other party believe that they have won the negotiation by providing them with more favorable settlement terms. This way everyone is happy!

Sealing the final deal might involve meeting the seller or the seller’s agent more than once. Be calm and do not lose your patient. Use these real estate negotiation tips to your advantage, and always remember, if negotiations fail, you always have other interesting properties to check out.

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!

1 Comment on Real Estate Negotiation Tips – Eight Tips That Every Buyer Must Know InBuying Property Real Estate
ApnaComplex
September 12, 2013

Should You Buy Or Rent A House In Bangalore?

With rents in Bangalore escalating faster than annual pay rises, buying a house of your own could be a smart choice. However, unlike what some people say, in certain cases renting a house can be more economical than buying a house on EMI. Here are some important factors that you might want to consider before deciding whether to buy or rent a house in Bangalore.

Indicators For Deciding To Whether To Buy Or Rent A House

The Rule of 15

Multiply your annual house rent with 15. If buying a house in your locality costs less than this amount, you’ll definitely save more by buying a house. For example, say you pay a monthly rent of about Rs. 20,000 (or Rs. 2,40,000 yearly). So, the basic rent-buy cutoff price would be Rs. 36,00,000.

Do I buy or rent?

If you pay high rent, and you cross the threshold of the rule of 15, consider buying a house.

How long do I plan to stay in Bangalore?

Buying and selling a house within a couple of years will result in the loss of about 6 % to 7 % of the cost price in terms of transfer taxes, and real estate commissions.

Do I buy or rent?

If you plan on staying in Bangalore for fewer than 3 to 5 years, it is advisable to rent a house.

How much do I initially have to invest?

Renting a house or an apartment in Bangalore requires paying ten months’ rent as security deposit. This amount can be recouped at the end, provided you do not damage the house. Buying a house involves a down payment of at least 20% of the cost of the property, plus the processing fee for the loan and the legal counsel fee for getting the property documentation verified.

Do I buy or rent?

If you can’t afford to set aside 20 % of the property value, rent instead.

Who pays for the repairs?

Owning your own house means paying higher insurance, and shelling out more towards maintenance costs. Maintenance is no longer as simple as calling your landlord to get the repairman to fix the leak in your shower.

Do I buy or rent?

If you do not have the time to get things done personally, or aren’t willing to bear the higher maintenance costs, rent a house.

The Final Verdict

Buying a house in Bangalore is increasingly becoming profitable, particularly with the real estate market yet to recover from the recent low. Whether you decide to buy or rent a house depends on your finances, and a few other factors as discussed above.

The bottom line is, if you plan on staying in Bangalore for a considerable period and are financially stable, consider buying if not, continue renting for the time being.

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!

Leave a comment InBuying Property Real Estate
ApnaComplex
September 12, 2013

How To Draft A Simple Rental Agreement

A rental agreement is a legal document drawn out between an owner and the tenants. It lays down the terms and conditions which determine the relationship between the landlord and the tenants. Here are some important points to remember while drafting a simple rental agreement.

10 Points To Include In A Simple Rental Agreement

Tenant Names

Besides the owner and the actual tenant, make sure you register the names of all the members who will be staying in the rented house, including children.

Rental Period And Renewal

Clearly specify the term of the rental agreement. You also need to mention the renewal policy and notice period for premature termination of the agreement.

Rent

The agreement should clearly mention the agreed rent amount, the due date for monthly payment, and the payment procedure-whether it’s a bank transfer, or payment by cash or check. In case of late payment, specify the grace period and fine amount, and also mention liabilities for check bounce.

Security Deposit

Specify the amount being deposited as a security, the return policy, and deductions for painting the house or any damages. Also, mention the date or time period within which the owner is supposed to return the deposit.

List Of Things

Include a list of things that come along with the property like the number of fans, light fittings, geyser, and other appliances.

Maintenance Fee

Clearly specify the liabilities of the tenant as well as owner for maintenance and repair. The tenant has to generally cover minor repairs, while the owner pays for any major maintenance work. Damages caused by tenants are to be fixed by the tenant. Chart out a garbage disposal policy, and make sure any preexisting damages are mentioned in the agreement as “preexisting”.

Utilities

Identify the various utilities available in the house, and specify the payment policies for these utilities. Mention if the tenant will have separate meter, a shared meter or a sub-meter. Mention the policy for dividing the cost of shared utilities. In case the cost is included in the rent, specify it and mention that the owner is liable for the bills.

Restricted Entry

A simple rental agreement should also clearly demarcate the areas that come under the rented premises. Entry restrictions to particular areas, parking policy, and the use of the garage should be clearly written in the agreement.

Guest Policy

The owner may not charge a “guest fee” for a reasonable number of guests visiting for a reasonable time. However, certain owners are very particular about guests. It’s always better to have a guest policy in the agreement. The number of guests allowed, their duration of stay, and guest fee applicable, if any, should be mentioned in the agreement.

Pet Policy

If the tenants have any pets, this should be mentioned in the rental agreement. Many owners have strict policies for pets including the type of pets permitted, breed, weight, and the number of pets. In case pets are not allowed, it should be mentioned in the agreement.

A well prepared simple rental agreement will prevent any future disputes or disagreements between the owner and the tenants. Make sure you include all the points mentioned above.

Have more points to share with us? Let us know in the comments below!

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!

Leave a comment InApartment Management Legal