09/11/2015
Here’s a look at some of the important points to keep in mind before you rent that home:
1. Physical inspection of flat - Before renting a flat, it is imperative that you carry out a physical inspection of the flat. Cross check the furniture and fixtures including plumbing, electrical and sanitary fittings. As a tenant, you must visit the flat or owner to see the exact location and demand for any changes that can be made to the flat by the owner before you move in. Physical inspection helps in avoiding any confusion that might take place later between the parties.
2. Maintenance charges - Clauses of annual and monthly maintenance can be a big issue of dispute between owner and tenant. So, a tenant should be well-informed about conditions before renting the flat. Regular maintenance like water taps, electricity boards and wiring might not create a fuss but heavy interior or outdoor damage repair and coloring of walls can be a matter of debate. Hence, these must be discussed right away.
3. Brokerage commission discussion - If the apartment is being finalized through a broker, the commission amount should be discussed in the beginning as it can vary from half month’s rent to a full month rent. It varies from city to city and it is advisable to go through an organized broker to avoid any harassment later.
4. Facilities in society - Taking a flat in a society is more challenging than taking one in a builder floor. The owner needs to inform the tenant about all types of paid and unpaid services to the tenant. Extra parking venue, conditional club use, swimming pool, door-to-door service charges, RWA etc. could be cost you more if the builder has missed mentioning.
5. Lock-in period and rent increase percentage after expiry of contract -Lease agreement between tenant and owner should clearly mention about minimum lock-in period (the minimum stay duration) such as six months, one year or three years. Typically, this lock-in period is one year. Also, at the time of vacating the flat, notice period, adjustment of advance security and electricity bill payment should be discussed. For this reason, the lease agreement should be read carefully and confusion should be clarified before moving into the house. The discussion on account of percentage increase in the rental amount must be taken up at the time of signing the Agreement. Initially, the hike in rent takes place after 11 months but sometimes it can be stretched depending on the conditions.
6. Flat documents - Before taking an apartment or flat of your choice through the broker or directly from the owner, you must make sure the property is free of any fraud or title issue. You can request for documents such as chain title, last paid electricity and water bills, overall layout and provision of changes (if any), relations of owner with the broker (if any) and basic know how of the last tenant who lived there.
Inclusions in the Rental Agreement
There are certain inclusions that must form part of your rental agreement to avoid any misunderstandings later with the landlord.
