Renting out your property is not merely about counting the returns after your tenant has moved in. There is much more to it than what meets the eye and if you are not careful and do not take professional advice you might have to face unwarranted litigation and disputes at a later date.
The things that you have to keep in mind before renting out your property can be categorised into two sections – General aspects and legal agreements. An in depth look at the two will be in order.
General Aspects before renting out your property with the dos first and then the don’ts –
- Do take details of the tenant like phone numbers, employer’s name and other similar details so that you can be sure of the credibility of the prospective tenant and ability to pay rent.
- Do get police verification done just to verify if the tenant has any criminal records or is involved in any criminal activity.
- Do decide the tenancy period in advance to get around any disputes later. Specify the parking space for the apartment.
- Do clean out your property before letting out so that you can expect it to be in the same state when you take it back.
- Do take a security deposit to cover future losses if any.
- Do get a written agreement with all necessary clauses and get it vetted by a property lawyer in Melbourne or wherever your property might be.
- Don’t drop by any time to your property. Curtsy demands you inform the tenant before hand of your arrival. If you are staying out of town, you may depute a friend or relative to pay periodical visits. You may even ask a neighbour to report any unwarranted incidents to you.
- Don’t get into an argument with the tenant on any issue. Be calm and try to reason out things first. If all else fails, you can take necessary action.
- Don’t return the security deposit unless you are satisfied that your property is in the same state that you rented it out.
- Don’t miss out on renewing the lease well before due date to avoid unpleasant litigation.
- Don’t forget to buy insurance for fire, natural calamities or theft. You might have rented it out but after all it’s your property.
Legal Agreements –
- Have the tenancy agreement reviewed by a property lawyer and get back to him for advice if the prospective tenant requests any modification in the clauses.
- Do not accept the tenant’s signature online. You then cannot be sure if all the clauses has been read and understood by him/her and whether the terms of the tenancy will be scrupulously followed.
- After the lease is signed, do not allow any changes to it. Any modifications in the lease should be accepted by both the landlord and the tenant and should be in writing under signatures of both parties.
- The tenancy agreement should have clauses to extend the lease validity period since most tenants tend to overstay.
Follow these points and keep them in mind if you rent out your property.