Similar to buying a flat, renting a flat is a daunting task. You need to consider various aspects before renting a house otherwise you may land up into legal issues. To make your house hunt easier, here are some vital aspects that have been discussed in this article. So, read on!
Why Is It Better To Rent A Flat?
Whether you should rent a house or buy a house has been a common query among home buyers. Even though most Indians prefer owning a house; the present situation of the economy and exorbitant prices of real estate have forced them to rent a home. Several factors have bought a change in perception towards rental homes. Some of the reasons why people prefer renting a house rather than buying one have been mentioned below:
- The real estate market is showing an upward trend, which has made it difficult for Indians to buy their first home. Looking at the current real estate market, staying in rented properties becomes a sensible solution.
- Although the property prices have increased, the rental costs have remained stable. This encourages people to prefer rental accommodations.
- The House Rental Rules in India has made it easier for tenant as well as the owner to make agreements. The mandatory police verification and registered agreements makes renting safe and free of worries.
- The mindset of people has changed immensely. They no longer look down upon rented apartments.
- If you are not sure on how long you will stay in a city, then it is better to live on rent rather than investing your hard-earned money on buying a home, as this will make it difficult for you to relocate.
- Rental properties provide an option to select a home as per your preference. So, if your office is situated in one of the posh localities, you can possibly think of renting a home there. However, buying one would be out of budget for many.
- It becomes easier to change houses as per your preferences. For instance; you may change your job and would prefer having a rented home that is close to your new work place. Also, your parents may move in with you, so you could easily shift to a bigger rented accommodation.
- If you have any plans of moving to another part of the city or state, then it is advisable to look for rented apartments.
What To Know When Renting A House For The First Time?
- Discussing T&C: You should talk to the broker and discuss all terms and conditions in front of the owner. It is advisable for all three of you to discuss everything in detail. However, if you are having a conversation directly with the owner without a broker, then that’s the best choice.
- Verify The Papers: Verify the ownership of the house before finalizing the flat on rent. It is essential to do thorough background check of the landlord. You need to even share your identity, which will be mentioned in leave and licence agreement.
- Registering The Agreement: You should get the leave and licence agreement registered, which is beneficial for the landlord in case of disputes. The agreement can be used in the court, just in case there is a dispute among the two of you. Another way to register the agreement is by mentioning rental details on Rs.100 stamp paper and getting it notarized. Among the two, the court gives more weightage to the leave and licence agreement, which is registered.
- Note It Down: It is advisable to note down each and every aspect that has been agreed between both of you. This will avoid any kind of litigations in the future.
- Police Verification: It is mandatory in Mumbai to get police verification done for each flat that is taken or given for lease.
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Legal Documents That You Should Verify Before Renting A House:
The Rental laws differ from state to state. So, you may acquire more or less documents than the ones mentioned below. However, check out the most important ones:
- Title Documents: To check if the landlord is the actual owner of the house.
- Electricity Bills: To verify if the electricity bills are in the name of the landlord.
- Share Certificate: Does the rented house fall under a co-operative society or colony?
- No-Objection Certificate (NOC): A certificate to check the provisions for rent of the house. For instance; some property owners do not allow bachelors as tenant.
How To Select An Affordable Rental Property?
Similar to buying new properties; it is tough to get rented properties that are affordable.
- All those properties that are well-connected with offices, marketplaces, schools, etc. will be costly.
- New houses that are put up for rent or recently renovated ones will command higher rents.
- Depending on the area of the house, the rent will defer.
So, if you are looking for affordable housing, then you should look for apartments that do not fall under the aforesaid criteria.
What Is A PG Accommodation?
A paying guest or PG accommodation is ideal for individuals who are looking for affordable rentals, are new to the city, and agree to share the accommodation with the owner of the house. Bachelors prefer opting for PG homes as it is easy to find one through various social media sites. Usually, individuals give one of their spare rooms on rent for a low price from their 2BHK or 3BHK apartment. The room mostly includes furniture, facility of laundry, meals, etc. So, it becomes easier for youngsters or bachelors to stay at affordable prices and focus properly on their studies or work.
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To conclude, clarify each and every clause that is in the contract so that you are well-protected. Usually, the term of lease agreement or rent agreement is signed for 11 months. This is done so that both parties can avoid registration charges.
As per the Registration Act 1908, the registration of lease agreement is mandatory if the leasing period is more than 12 months. If you want to register the lease agreement, then both tenant and landlord can share its cost or have a mutual agreement.
Remember to put a clause in your agreement that the tenant or the owner has to give a notice of at least two months before terminating the agreement. If both parties want to continue then the lease agreement can be renewed on mutual consent.
As you have read above, there are various factors that need to be considered before making a decision on renting a house. So, follow these tips and have a safe stay in your rented home.