Have you purchased a residential property being desirous of a steady and attractive rental income? Then you need to shape yourself up to the standards of the landlord as set by the market. A favourable landlord can surpass a tenant’s location priority even if it does not match the latter’s preference.
After all, everyone wants to feel at home in exchange for the rent paid, which is not a very less amount. The tenant is also endowed with certain rights that can be costly on the part of the landlord if violated and can even degrade his popularity.
With the rising number of millennials whether employed or studying from different corners of the country, viable rental accommodation is a bare necessity and thus, the market can give you a tough competition until trying to rise above the rest as the proprietor.
Here, we have discussed several factors that highlight your responsibilities as a landlord and how you can become the best amidst the lot that create their own terms and conditions or unreasonably increase the rental amount annually.
Fixing the rent is the foremost thing that you have to get right and it should justify the factors that determine it such as the property age, quality of amenities and construction, location. The rent amount should vary between 2 and 4 per cent of the property value. If your property is situated in any of the prime points then a premium can be attached to the property value. Increase the rent only after having discussed it with the tenant. As per law in many of the states, the landlord has the right to raise the rent of a residential property not more than 10 to 11 per cent annually.
Ensure the Availability of Amenities
More than anything else, take care of the basic amenities such as electricity and water supply without any interruption. Remember, the tenant has the right to complain to the police or approach to the rent controller if you disconnect the basic amenities. Make sure to clear disputes regarding your property, if any, provided that it belongs to a housing society. In that case, the tenants shall approach the other residents.
As a landlord, you are also responsible for bearing the major maintenance costs, as well. But at the same time, you cannot disturb the privacy of your tenants once the rent agreement has been signed, not even for any repair work that should be done only after taking the tenant’s consent.
Security Deposit Amount
If your property is unfurnished then it is practical to demand a security deposit equivalent to a month’s rent from the tenant. You might raise the amount for a furnished property to the extent that conforms to the restrictions of the local Rent Control Act, if applicable.
Notify Tenants for Moving Out
Even if violating any rule of the rent agreement is the cause for you to ask your tenants to leave, you are obliged to notify it beforehand and also state the reason for your action. The Transfer of Property Act to cease the tenancy makes it mandatory for the landlord to provide the tenants with a period of 15 days for shifting elsewhere.
Hope, the reading will make you more cautious so as to obtain higher rental yields as a return from your property investment. Wish to invest in a flat in Kolkata but can’t find one that will cater to your requirements? Contact us at transventor.com to grab the property that more or less fits the location and budget of you