Are you planning to rent out your apartment? Wondering what necessary safety measures you need to take to do so?? Or do you feel that it’s best to convert your home into a guesthouse? In the light of increased terrorist attacks around the country, making sure that your tenants are verified is very essential. What are the precautions you need to take and what is the best option for you – renting your apartment to an individual or company, or converting it into a guesthouse?
Many believe that renting out your apartment or home will earn low returns. But if your apartment or home is located in a prime area, and you purchased it at the right time and rented it out accordingly, it could generate a stable source of income for you.
Consider following these steps to renting out your property effectively:
Advertise your property to attract prospective tenants or check for tenants among your family or friends. You will need to thoroughly check the credit, rental and even personal references of your applicants. If you want to be doubly sure, feel free to take up the ‘tenant verification’ facility with the help of the local police in your area.
Ensure that all documents/papers are in place before you rent out your apartment.
Be prepared with your rental agreement and get it signed before your tenant moves in. Make sure that proper stamp duty is paid on the document and is registered with proper authority such as Sub-registrar of Assurances.
You can also convert your home into a guesthouse:
With many companies setting up shop in most major cities of India, demand for prime residential property has seen a huge rush. You could cash in on this realty boom and expect good appreciation while earning a stable monthly income, by renting out your home as a guesthouse to multinationals and other established companies.
Whatever you choose to do with your property, ensure that you invest in real estate only after looking into all the legal aspects and costs involved.
Renting out your home as a company guesthouse not only ensures that it will be well maintained and the rent paid on time, but also that you will be able to repossess it whenever you require or as per the terms of the agreement made. Though renting out to private individuals can also be considered but not preferred over to renting out to companies if you have the option.