Points to remember while giving property on lease/rent
Everyone dreams of investing in an immovable property, like a piece of land or a house. This vision is achieved after years of savings. Once purchased, the property has the potential to generate additional income by way of lease or rent. But great care needs to be taken while doing this and a lot of aspects have to be kept in mind while selecting the right paying guests (PG) or purchasers on rent (rent party).
It is necessary to do a check up on the financial history and social background of the paying guest. Do not to take a rash/ hasty decision and neglect a background analysis simply because the party is willing to offer a higher rent. This could lead to grievous legal difficulties regarding rent and ownership. A bit of caution early on can prevent any misuse of your rented property.
Those who wish to lease their property on rent need to consider the following points beforehand.
1) Ask for a passport size photo of the paying guest / rent party.
2) Ask for the party's history, especially with regards to contact address of his office, shop/godown, permanent residence, reference from previous employer / PG family, etc. It is also advised that the facts submitted by the party are cross checked.
3) Ask for a photocopy of the party's passport, PAN card, driving licence etc.
4) Ask the PG/ rent party to sign a Rent / "Leave and Licence" accord for 11 months on a stamp paper worth Rs 50. Affix the party's passport size photo on the stamp paper and get it notarized. Keep the original attested document with you and provide a copy of the same to the PG / rent party.
5) Ask the PG / rent party to assign a witness who shall have to sign the Leave and licence accord as a Jaamindar (person willing to provide bail/ surety of the rent party in case of legal hassle). The witness is required to provide his/her permanent residence address and other valid information.
6) Before giving a property on rent, seek guidance and assistance from a government accredited broker or estate broker who is affiliated to an appropriate broker association and has a certificate stating that the broker pays business tax and has a practicing license. This assures that in case of any dispute in future, the landowner retains rights over property and gets legal protection from accusation by the rent party.
7) There are many touts who rent property on pseudo-names and use devious means to avoid paying rent or give up land control. They might perform illegal activities in the rented premises and spill the blame on the innocent landowner. Be wary of such clients and report any suspicious activity to the authority.
8) If possible rent your property house to those parties who have a family or come from reputed homes so as to avoid people with nefarious character who might pose a threat to your property.
9) Avoid leasing land / property to unmarried individuals or people without a family background.
10) Provide all valid information regarding the PG / rent party to the nearest police station.
11) If the leased land / property holds commercial value, make it mandatory for the PG / rent party to pay a minimum advance payment of 10 months. For residential properties, take an equivalent of 5 months rent as a deposit. This would take care of all expenses like light bill, tax, government loans, maintenance and damage to property, etc. incurred by the landowner in case of forfeiture of lease by the rent party without prior information.
12) It is imperative for the landowner to ask the appointed broker to provide the agency registration number, valid signature and agency seal/ stamp on every page of the 'Leave and Licence' accord so that the broker can be held accountable to look after any legal disputes in future.
It is necessary to do a check up on the financial history and social background of the paying guest. Do not to take a rash/ hasty decision and neglect a background analysis simply because the party is willing to offer a higher rent. This could lead to grievous legal difficulties regarding rent and ownership. A bit of caution early on can prevent any misuse of your rented property.
Those who wish to lease their property on rent need to consider the following points beforehand.
1) Ask for a passport size photo of the paying guest / rent party.
2) Ask for the party's history, especially with regards to contact address of his office, shop/godown, permanent residence, reference from previous employer / PG family, etc. It is also advised that the facts submitted by the party are cross checked.
3) Ask for a photocopy of the party's passport, PAN card, driving licence etc.
4) Ask the PG/ rent party to sign a Rent / "Leave and Licence" accord for 11 months on a stamp paper worth Rs 50. Affix the party's passport size photo on the stamp paper and get it notarized. Keep the original attested document with you and provide a copy of the same to the PG / rent party.
5) Ask the PG / rent party to assign a witness who shall have to sign the Leave and licence accord as a Jaamindar (person willing to provide bail/ surety of the rent party in case of legal hassle). The witness is required to provide his/her permanent residence address and other valid information.
6) Before giving a property on rent, seek guidance and assistance from a government accredited broker or estate broker who is affiliated to an appropriate broker association and has a certificate stating that the broker pays business tax and has a practicing license. This assures that in case of any dispute in future, the landowner retains rights over property and gets legal protection from accusation by the rent party.
7) There are many touts who rent property on pseudo-names and use devious means to avoid paying rent or give up land control. They might perform illegal activities in the rented premises and spill the blame on the innocent landowner. Be wary of such clients and report any suspicious activity to the authority.
8) If possible rent your property house to those parties who have a family or come from reputed homes so as to avoid people with nefarious character who might pose a threat to your property.
9) Avoid leasing land / property to unmarried individuals or people without a family background.
10) Provide all valid information regarding the PG / rent party to the nearest police station.
11) If the leased land / property holds commercial value, make it mandatory for the PG / rent party to pay a minimum advance payment of 10 months. For residential properties, take an equivalent of 5 months rent as a deposit. This would take care of all expenses like light bill, tax, government loans, maintenance and damage to property, etc. incurred by the landowner in case of forfeiture of lease by the rent party without prior information.
12) It is imperative for the landowner to ask the appointed broker to provide the agency registration number, valid signature and agency seal/ stamp on every page of the 'Leave and Licence' accord so that the broker can be held accountable to look after any legal disputes in future.
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Industrial Shed / Warehouse / Godown / Logistics Park / etc.. available in different locations of Rajkot and nearby area..
Commercial # Residential # Industrial # Agriculture
Contact with specific requirement.
We can provide one of the best property as per your requirement criteria.
Krupa Property Solution
"Contact with specific requirement"
Commercial # Residential # Industrial # Agriculture
Contact with specific requirement.
We can provide one of the best property as per your requirement criteria.
Krupa Property Solution
"Contact with specific requirement"
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