HOW TO PROTECT AGAINST THE ILLEGAL TENANT
Many people find it easy to make some money by renting out their property. It is easy to find a tenant but the process calls for a huge risk when one decides to rent out his/her property to a complete stranger. It is very important to know the dos & don’ts before renting out your property. You must know how to protect against an illegal tenant. An illegal tenant is one who is staying in your property without paying rent and is also not vacating the property. Rent Control Act passed by the Indian Govt. in 1948 has laid out clear rules and regulations for the rental of properties & eviction of illegal tenants. Here are some important pointers that will help you to protect against illegal tenants:
Draw Out A Rental Agreement
When renting out a property, it is very important to a draw up a rental agreement between you (the landlord) and the tenant or else things may just get very disturbing later on. A rental agreement consists of terms and clauses regarding the rights, responsibilities and limitations on both sides regarding the house to be given on rent. This becomes useful especially if there is some damage done to the house or an abuse incidence. The agreement will also include consequences to be faced lest the terms in the agreement are not agreed upon by both the tenant and the owner. An agreement is as solid as a rock and is very helpful in crucial times.
When writing the rental agreement, please keep in mind to include the following details
- The names and addresses of the tenant and landlord
- The rent & rental duration.
- Mention the amount of deposit the tenant has to pay before moving in your property.
- State how the rent has to be paid and the date by which it should be paid.
- Mention the terms and conditions, regarding damages, what is allowed and what isn’t, what are the tenants limits and privileges on using your property. Be very specific.
- The rental agreement must be drafted by a lawyer, on a stamp paper and has to be attested as well. The agreement has to be signed by both tenant and landlord.
From the start, you must make it very clear with your tenant about their obligations. Ensure they get a copy of the rental agreement and, where applicable, a copy of the rental act set out by the govt. of India. A good rental agreement is essential for you and the tenant to establish a good relationship
Check Their References
It is always good to get the tenants background checked. It is important to get a police verification done to ensure all is in order. Also do reference checks to understand the background of the tenant you are planning to rent out to.
Take Out Landlord Insurance
A landlord Insurance is an all-inclusive coverage that offers financial security to landlords renting out their property. It is designed keeping in mind the safety of the landlords so that their rental property and contents of the property are insured against any untoward incidents.
Choose An Agent Who Is Competent And Capable Of Managing Your Property.
Most landlords get their properties rented out through an agent. It is important to select a competent agent to handle all dealings with the tenant. Someone, who is able to do up a background check of the tenant and get all the rental papers organized.
As in any relationship, disputes can take place between landlords and tenants despite best intentions. The key is to understand the circumstances and know where you stand. It is important to keep the lines of communication open. These pointers will definitely help you protect against illegal tenants.