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Updated by Simranjit Kahlon on Oct 14, 2020
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7 Best Rent Collection Tips for Landlords in India

1

Evaluate your tenants cautiously

Taking time to screen who you’re renting your property to can spare heaps of time, the rental chase up, dissatisfaction, bothering, and a thousand different issues related to rent monitoring. Make sure you have reasonable criteria for your candidates. Likewise, ensure tenants must have 3X rent collection amount as salary and great credit. Their credit report will reveal to you how they handle their obligations and if they’ve received any eviction notices before.

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2

Fix the rent

Once, as a proprietor, you finalize the occupant, next, fix the rent deposit. It must be as per the market. Setting it higher than the market rate would make it harder for you to locate an occupant. If still, you wish to set it for a higher limit than the market, justify it by offering some perks. You can also include security gadgets like a CCTV for higher rent.

3

Prepare a rent agreement

Each rent agreement ought to be recorded in a hard copy and enlisted. It gives the term of the rent collection, month to month rental deposit, and security sum. It indicates all the terms and conditions of the rent collection related services, for example, who will pay for the water, electricity, and maintenance bills.

The landlord must know the reason for making this a customary, regardless of whether the property is being utilized for business or private purposes. In case the landlord and the tenant agree to broaden the terms of the rent agreement for a specific period, that needs to be re-recorded in writing.

4

Openly discuss advances and lease increment

A security sum ahead of time is a standard for each agreement. A landowner is qualified to ask for this as a preventive measure for any harm caused on the property. The equivalent could be interrogated if something happens to the property. It is, likewise, a typical practice to expand the house lease yearly.

5

Discuss the method of payment and know your alternatives

There are many approaches to rent collection in India. It’s essential to tailor these in your rental agreement to the segment you are planning to house, as this will diminish rental chase up issues in the future. For instance, undergrads may not have a chequebook, while the older tenant may not be accustomed to the electronic payment mode.

6

Police verification of tenants

This is one of the most fundamental parts of a rent collection for owners doing it for the first time. It helps in the personal investigation of the tenant. Not running a police verification is a culpable offence under Section 188 of the Indian Penal Code. It should then be submitted to the near police station alongside ID confirmation of the tenant. At that point, the nearby police direct the individual verification and give a heads up for the rental agreement.

7

Know your privileges as a landlord

Under India’s rental laws, some rights shield a landlord’s interests and avoid the rental chase up and rent monitoring trouble. The Rent Control Act is one significant act passed by the GOI in 1948, post which a few states have embraced changes to match the case. The law discusses the privileges of landlords. As of late, different revisions have been made to the law.