Things to keep in mind before renting out your property

It does not take a PhD in money management to know that any financial relationship has to have the right kind of due diligence and paper work in place. Even so, when it comes to renting out your house to a tenant. Today’s ET wealth talks abouta few things you need to keep in mind regarding the landlord and tenant’s financial relationship.

To begin with, it’s very important to conduct a background checks on the potential tenants. Asking for their permanent address, office address as well as references is a good idea.

The next thing to do is fill the tenant verification form available at your local police station. It’s mandatory by law for you to do so as a landlord. You would be asked to submit the potential tenant’s photo, copy of PAN along with the form.

Ensure that you make a proper lease agreement and register the same with the local authorities. You could avail the services of a lawyer to make the agreement, if your broker is helping you out to make the agreement, ensure you get it verified by a competent third party. Never trust your broker blindly.

Ensure you spell out all the grounds of eviction properly in the agreement as this will ensure that you won’t have trouble in the future. In case your existing tenant does not agree to vacate your property, you can approach the designated authority of the state, and rely on the services of the police. Every state has a competent authority to look into rental disputes, as per law.

And finally, if issues go out of hand with the tenants, you could also approach the civil court. Read the entire_ET Wealth report here. _