Get the maximum from renting in lucknow

Before you leap in finding for the tenants and delve into imaginary calculation for stuffing your wallet back, there are certain pre-do things, which will save you from many troubles.

Before you work on the sign boards 'for rent' that is stuck somewhere in the front yard of the property, there are certain things that you need to do in order to avoid future obligations. Leasing out a property is not an easy task for landlords. A lot of preparedness and sensible thinking is required before taking a final call. If you want to avoid instances such as tenants breaking out their lease and leaving before fulfilling their terms, or tenants overstaying without paying rent, or having destructive tenants, you must exercise precaution.

The main purpose which lies in leasing out a property is making an extra income and stuffing the wallet back, but it is not easy. It is better to be on renter side when it comes to increased cash flow, potential tax benefits, appreciation over time and flexibility to sell or lease out later. But, if you wish to have a healthy relationship with your tenant, consider the following titbits.

Research beforehand

Before renting out a house to the tenant, you must find out the current rental rates in the area and know whether listing the property is even worth the effort you put in.

Calculate the monthly mortgage with the current market rates. You may also hire a quality property manager, CE rich in experience and acknowledge with all the services they provide.

Know your tenants

While it can be a pain to screen tenants in detail, but it is definitely a better option than choosing a tenant who doesn't pay rent on time, or doesn't care for your property.

Before shaking hands with the new tenant, scan and screen the credit report of your tenant.

Also run a criminal background check. Also check if your tenant has good references concerning rental payment, housekeeping, and property maintenance from all previous landlords.

Legal side

Assuming you're not an accountant or deeply familiar with rental tax laws, it would be wise to engage an accountant to help you sort through the tax implications of renting your house. Consult a certified public accountant and look up all the relevant tax codes related to investment properties. A real estate lawyer can help ensure that your lease agreement does not contain any illegal provisions, while also protecting you from the financial harm that could result from tenants exploiting loopholes in your agreement.

Documents

Keep everything in writing. You will need to create a document that covers points that are specific to your property, in detail.

This paper should cover things like repairs, pets, deposits, late payment charges and utilities among others.

Thus, taking an extra care for your property below before letting the tenants to stay in your house and going through all essential steps mentioned above will keep you away from little less desirable tenants and will help you to fetch all benefits of being a landlord.

Source: Times Property, The Times of India, Lucknow