Renting out a house- key things to take care of.

For the last couple of days, my family and me have been very tied up trying to take back possession and rent out our house to a new tenant. Its been a trying few weeks of effort. There are a lot of  learnings, and i thought it may make sense for me to write what i have learnt so that it can be shared with my readers.

Broker

• 99% of brokers job is to close the deal. They are interested in making their money vs trying to ensure that the tenant and the owner are happy with the deal.
• Brokers will ask for money to get the house on rent. Now- what you should do is to ask if the broker is from the side of the tenant or the owner. ONLY one side should be paid. If the broker has contacted you saying he has a client who wants to take your house- then you need not pay anything!!
• Ensure that the broker gives all the documentation required for the house to go on rent.
• Lease papers are signed and couriered ( dont pay the money for the courier)
• The tenant has been notified to the nearest police station for verification( get the documents couried to you)
• The advance and security deposit are given to you
• Never give the broker of your tenant the keys to your house. Always ask the question to the tenant before giving the keys to the house to the broker- always verify!

Old tenant

• The security deposit is NOT to be adjusted with the rent of the month. The security deposit is for the owner to ensure that everything is in a good condition.
• Ensure that the tenant has cleaned up the house- all sweeping and mopping done before they leave the house. It is extremely difficult to get these done- especially since you are not staying in the same complex or town!
• Ensure that keys and maintenance fees are all cleared up. It becomes a problem for the owner and the new tenant.
• All fixtures and lights need to be taken care of- if you gave it to them in a working condition- you should get it back in a working condition!
• Ensure that the electricity meters are in working condition.

New tenant

• Get the proof of the person being in the company that they say they belong to.
• Try and get a company lease
• There is a higher risk involved in giving the flat to a business person than giving it to a person who is from a service background.
• Ensure that the money is paid as per the dates agreed to.
• Make a list of all things that are provided and the condition of these things to the tenant. They have to give it back in a good condition.

Advertising on your house

• There are a lot of websites that allow you to advertise your house - http://www.99acres.com/, http://www.makaan.com/, http://www.sulekha.com/ among others.
• Advertise your house on the websites of your society. One can avoid brokerage charges which are quite high
• Let people know about your house being available- your neighbours etc. 

I know that the list can go on and on. But the house is yours and the tenant should not take you for a ride. There is a risk involved in giving your house to anyone else- and good precautions must be taken before giving out the house on rent to anyone.

comments welcome.

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