Why co-tenancy arrangement works well

Getting a safe and affordable accommodation in citiesis not easy. Either you shell out a huge amount for a safe location or you compromise on safety. Getting all the parameters right is not easy.

One way out to get a good location in a safe area at a reasonable price is by being a co-tenant. Many who come to cities for work land up being co-tenants, at times even with people they barely know. Opting for co-tenancy is not something to be taken casually. A report in today’s ET Wealth has dwelt at length about the things you must keep in mind while opting for co-tenancy.

[caption id=“attachment_1063013” align=“alignright” width=“380”]  AFP[/caption]

For instance, if you plan to be a co-tenant, ensure that your landlord knows about it and you get his consent for the same. Do not settle for just a verbal consent from the landlord. Ensure you have an agreement stating co-tenancy. The housing society also needs to provide a no-objection certificate in case of co-tenancy. Ensure you have that as well. A smart landlord will ensure that he registers the agreement with the concerned authority.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

The finer details of the co-tenancy should not be ignored. For instance, any damage to the property, and usually both tenants have to shell out money, but might be in different proportion. Make sure you have all these finer details chalked out in the co-tenancy agreement as well. Another advantage of making a proper co-tenancy agreement is that you could get an income tax benefit by way of house rent allowance.

Read the full ET Wealth report here.