Tuesday 2 October 2012

Re: [www.keralites.net] How to Unlock the value of your property?

 

Sir,

While letting the property I will also suggest to have the Police Verification done and also have the NOC of the Housing Society if the owner is living in a Society so formed.

Also it is better to make the agreement for one year and then renew with a break of one month , never mind even if one pays a little more registration and stamp duty fees.

Never permit the tenant to apy make any direct payment of telephone, electricity, gas,etc and also do not allow the tenant to submit the contract of agreement to any agency like telephones, cell phones etc to get a connection.

Also do not issue any rent receipt to him and not allow him to register himself for voters or ration card in the address of the rented flat.

regards
Ramanathan P

On Tue, Oct 2, 2012 at 11:55 PM, P Nair <pnair1966@yahoo.com> wrote:

How to Unlock the value of your property?

Real estate is one of the favourite investment avenues for investors with deep pockets.

However, many of them only think about the future value of the property while making the investment, rue investment experts. That is because they don't even want to consider the possibility of renting out the place.

If you want a proof, check the number of permanently locked houses in any new building in big cities.

According to investment advisors, this is a bad strategy, as a real estate investment is expected to fetch capital appreciation as well as rental income to make up for the huge investment and its comparative liquidity as an investment.

Sure, rental yields are not much; but even at 4-6%, they are good enough to take care of the maintenance costs. The surplus, if any, is the icing.

"With the increase in the cost of property and home loan interest rates, house rents are also going up," says Pankaj Mathpal, CFP, managing director, Optima Money Managers. He is hinting that many prospective buyers are postponing their decision to buy home and instead are settling for living on rent, pushing up rental in many pockets in the suburbs.

"It is a good idea to rent a house than have it locked up. It gives some earnings from the property," he adds. But no amount of financial reasoning is going to convince some of these investors to give their property on rent.

Most of them fear that a troublesome tenant can make their lives miserable, and any legal hassle could damage their investment plans beyond repair.

However, these fears may be exaggerated, according to experts. You don't have to fear much if you ensure the documents are in order, do a background check on the prospective tenant and draft an appropriate rent agreement.

Document check

A tenant may not insist on all the documents, but it is in your interest to ensure that property papers, which include the occupation certificate and title deeds, are in order before renting out the apartment.

"A landlord has to ensure that his or her name is clearly mentioned in the property documents. This acts as a good authentication in case of any dispute in future," Shveta Jain, director, residential services, Cushman & Wakefield.

Valuation of property

The rent from the property depends on several factors, such as the location, size of the house, other amenities offered by the housing society and the overall market trends in terms of appreciation and depreciation.

"If you are renting your property, get a surveyor or a couple of brokers to confirm the rental value. Apart from checking out with your neighbours, get the property evaluated by two or three brokers to get an accurate quote," suggests Gulam Zia, director, national advisory services, Knight Frank.

Background check of tenant

It is important to get the basic background information on a tenant and verify it for accuracy. "The purpose behind the background check is twofold to ensure that the tenant is a suitable fit for the property and to preempt any legal complication at a later stage," says Om Ahuja, CEO (residential services), Jones Lang LaSalle India.

Doing a thorough check would also ensure that a tenant has no criminal background. Many cities and localities in India now require tenants to undergo police verification.

Ideally a landlord should personally meet the prospective tenant and get firsthand details about his occupation, permanent address, documentary proof of identity and, if possible, local references.

Apart from that, you can do a personal background check by asking for references of previous landlords along with contact details, and a letter from the company in which he or she works.

Drafting the rent agreement

Pay close attention to the terms and conditions in the agreement and to have the agreement registered or notified. The type of agreement would depend on whether it is a straightforward rental arrangement or a lease. "Again, there are two types of lease company and personal.

Most landlords prefer a company lease; but whichever is used, it should mention the duration of the lease," says Om Ahuja. "In the case of a personal lease which spans for 11 months, the landlord should have the agreement notified.

In case of a company lease, which extends for more than a year, the landlord should have it registered with the help of a lawyer. The landlord should complete all paper work before the tenant actually moves in," he adds.

Source: ET

Best Regards
Prakash Nair


www.keralites.net

__._,_.___
Recent Activity:
KERALITES - A moderated eGroup exclusively for Keralites...
To subscribe send a mail to Keralites-subscribe@yahoogroups.com.
Send your posts to Keralites@yahoogroups.com.
Send your suggestions to Keralites-owner@yahoogroups.com.

To unsubscribe send a mail to Keralites-unsubscribe@yahoogroups.com.

Homepage: www.keralites.net
.

__,_._,___

No comments:

Post a Comment