Indian cities like Delhi are growing at a tremendous rate. Every day we have people coming in from smaller cities, towns and villages looking for job opportunities here, pursuing higher education or just in search of urban lifestyle. Buying their own apartment is unthinkable for a common man, due to the high property prices. The next best option is to rent. This has created a huge demand for rental apartments in Delhi. Countless investors are taking advantage of this opportunity and buying houses just to give on rent.

Real estate Kochi on the other hand is equally reaching great heights and matching the new requirements of home seekers. The city today has become a new investment destination for potential clients.

But many first time land lords are unaware of the potential risks that come along while renting a property. Renting process can be a tricky one and sometimes it can be a headache and also a nightmare. Some of the common tenant problems are delay in payment of rent, misusing and damaging the property, conducting illegal activity, refusing to vacate, creating havoc in the neighborhood and so on. To ensure you are renting your place to the right tenant, one to take precautions at every step of the renting process.

Deciding the rental amount

It is important to quote the correct amount to the tenant while giving out the property. There is so much competition in the market, so make sure you are offering a reasonable deal. Do a little market research before finalizing the price.

Property Insurance

As a landlord your property is always at risk, because you are not living in the property, your tenant is. Hence it is crucial to get your property insured. Consult with your insurance agent to get the maximum amount of liability coverage for your property.

Property Listing

After deciding on the rental amount and insuring your property, the next step is to list it so that potential clients are aware of your rental property. You can list it online or go through a broker.

Screening the Tenant

Once you meet prospective tenant, make sure you explain all the do’s and don’ts and see if your prospective tenant is okay with your rules. If they have any doubts, clarify them. It is important to screen your tenant carefully. Make sure they are reliable, good people and can take care of your house.  If they need certain things to be fixed in the house, do so if their demands are reasonable.

Rental Agreement

The rental agreement should have the details like the monthly rental amount, term of lease, security deposit amount and other clauses you feel are important. Everything should be in writing and registered.

Agreement Registration

It is necessary to register the register agreement; else in case of any arguments, it cannot be used as proof in the court of law. Ideally the amount for registration and stamp duty has to be paid by the landlord or it can be borne mutually by the land lord and the tenant, depending on the situation.

Police Verification

This is a very important step as it helps in background verification of the tenant. It’s illegal to rent an apartment without doing the background check of the tenant.

Non-Discrimination

As a tenant please do not discriminate among potential tenants on grounds such as gender, religion, color, occupation, marital status, dietary preferences etc. There are situations where refusal to rent out a property is justified, but it is a grey area and should be valid in the eyes of the law. Make sure it is a valid reason and your judgment is not clouded by antiquated thoughts and misconceptions about certain kinds of people.

After renting out the place, you can conduct periodic checks to ensure the terms and conditions of your agreement are not violated.