Bhopal: The land of Faith Cricket Club is in the inventory of assets under scrutiny said Income Tax officials. Tomar was summoned for a personal appearance by the ED with relevant documents of the assets.
On Monday, special PMLA court issued a fresh arrest warrant against Raghvendra Singh Tomar after the Enforcement Directorate (ED) reported that despite multiple attempts they failed to trace him.
To execute the warrant issued for the alleged money laundering case, last week, ED officials visited the residential premises of Tomar. On Thursday, the warrant was handed over to his wife as Tomar was not found at home.
MP Lokayukta investigated the assets of an IAS couple in an alleged disproportionate assets case. Almost after a decade of investigation into the assets of IAS couple Arvind Joshi and Tinu Joshi, ED probed Tomar.
Income Tax also searched for Tomar who is the owner of Faith Builders was summoned to appear in person by ED with relevant property documents which the investigator firmly believes are linked with the Joshi couple. Tomar was charge-sheeted before the special court on January 10.
On Monday, Tomar uploaded a video on social media claiming that he was a ‘bonafide buyer’ of Joshi’s land and had invested in the property more than the actual cost. The money which he has invested was earned through his real estate business and other sources of income. He said that he was unaware of any illegality related to the land on which his Faith Cricket Club is built.
Tomar said that the cases registered by ED at Habibganj police station are entirely different. The complaint made by H M Joshi to the police is false. The matter is subjected to an inquiry by the questioned document section, I haven’t done anything wrong and I am sure that the facts will come to the fore. He added that the case was registered under the pressure of a former DG and former CSP.
The land of Faith Cricket Academy is in the inventory of assets under scrutiny, said Income Tax officials.
About 58% of developers across India expect housing prices to increase further in 2023, according to the Developer Sentiment Survey conducted by CREDAI, Colliers, and Liases Foras. Demand for homes and volatile key input costs simultaneously increased the housing prices in the Indian market. A joint report by Colliers-CREDAI-Liases Foras, on Real Estate Developers’ Sentiment Survey 2023, summarizes perspectives of developers on how the residential sector spanned out in 2022 and which transects the sector is anticipated to follow in 2023.
Disruption in global chain supply leads to inflationary pressures, as the cost of raw materials has increased in the last two years. Compared to 2021 about 43% of the developers saw a 10-20% rise in project costs through rising input costs. Colliers mentioned in its construction cost Update on November 2022, that the key construction material costs have increased by around 32% in a span of three years leading to increased construction costs for the developers.
Record-breaking sales in the previous year in the last decade, encourage more than 70% of developers to believe the housing demands will increase by 25% or remain stable in 2023. Most of the developers in the community are looking to expand their offerings and the year is expected to see a surge in new launches equal to the current supply under construction. Key factors such as Rising population, wealth growth, and rapid urbanization are stimulating the industry’s growth. Thus, in order to maintain the momentum, nearly 31% and 40% of developers respectively anticipate that the government will rationalize/ income tax credit, GST, and ease of doing business, said Harsh Vardhan Patodia, President of CREDAI National.
Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development, Asia, Colliers said that since the pandemic, there has been a constant preference for home ownership leading to an increase in enquiries for developers across the spectrum in 2022. According to the survey, the developers remain confident about the market. About 43% of the developers anticipate that residential demand in 2023 would remain stable. Despite increasing loan rates, homebuyers are still excited to buy homes. Developers are also formulating strategies to complete their pending projects and focusing on launching new projects that are aligned with the needs of the homebuyers and bring in demand-led supply.
A survey revealed that 62% of the developers feel that buyer enquiries and engagement have increased in 2022 as compared to 2021. 43% of the developers anticipate constant residential demand in 2023, while 31% predict that the demand would increase by up to 25%. 43% of the developers witnessed a 10-20% rise in project costs in 2022 due to increasing input costs. As an alternative business model, 31% of the developers are willing to consider plotted developments, followed by branded residences preferred by 19% of developers. About 39% of the developers expect better ease of doing business from the government in 2023, while 31% expect rationalization/ Income tax credit GST. Almost half of the developers expect that a predicted downturn will moderately impact their business. “2022 witnessed the highest-ever sales and new launches across major cities in India. Liases Foras, Managing Director, Pankaj Kapoor said, “We have also seen a marginal increase in property prices. The market is expected to retain the momentum that the sentiment survey re-affirms”.
About 31% of the developers are willing to explore planned developments as an alternative business model, whereas 19% of the developers preferred branded residences which were considered favorite by the majority of developers. Demand for self-contained residential complexes has risen due to rising disposable incomes and an increased desire for top-notch amenities and open areas. With lower land rates and flexibility, plotted developments are also becoming popular among homebuyers, especially in tier II cities.
Around 87% of the developers are willing to launch new residential projects in 2023, the upcoming year is expected to witness a surge in new launches. Despite inflationary pressures and any significant turndown, this encourages optimism among developers. However, developers are probably adopting a wait-and-watch approach to see how the economy, job freezes, and layoffs pan out over the coming few months. The developers request easy business from the government.
The survey states that ‘Ease of doing business’ is developers’ top expectation from the government. The government announced the launch of ‘Ease of doing business 2.0’, in the Union Budget last year. The sector anticipates more clarity and guidelines for the index, including aspects such as single-window approval.
Buying a house is generally the biggest purchase of one’s lifetime which can’t be done without detailed financial planning. Understanding and evaluating the actual cost of ownership of the house is the first and vital step while purchasing a house. The actual price of the house will be contrary to expectations, it could be different from the cost projected by the builders and sellers.
This is because the property always includes hidden charges and additional expenses that should be checked and considered while buying. Here are some of the factors that necessitate being considered while buying a property.
Registration fee and Stamp Duty
A registration fee is mandatory and a buyer is supposed to pay the state government to register a house under his/her name. These charges may differ from state ranging from 5-7 percent. Registration is the final agreement between the seller and buyer indicating the transfer of ownership. The court charges a 1-2 percent registration fee for it.
Surcharge
This fee is charged in addition to the stamp duty. The property priced above 32 Lakh would charge a cess of 10 percent surcharge in urban areas and three percent in rural areas.
Goods and Service tax (GST)
GST is paid to the government like stamp duty and registration charges for under construction. The GST on the under-construction property is 5% while affordable housing projects attract only 1%. The GST is not applicable on ready-to-move properties or on those projects which have got the compilation certificate.
Advance Maintenance Deposit
Builders can charge advance maintenance or security charges, and this may be for up to 2 years which usually comes in common amenities, parks, and lighting. It is charged as a deposit for any future damages to the property. Deposit sum could vary with the number of amenities in society and include membership like clubhouse, gymnasium, etc. The charges depend on locations and societies to societies. For instance the high localities like Bandra and Cuffe Parade and lower places like Borivali and Mahim in Mumbai.
Parking space
The seller has all rights to sell the parking place to another member of society if the parking fee is not paid. The charges apply depending on the size and number of spaces provided to you. The spaces can be varied depending on the location and societies in which the property is.
Interiors
The interiors include any lighting, paints, carpets, furniture, and electric appliances. Fully furnished interiors can be charged up to Rs. 10 lakhs. The fee comes separately and has to be paid by the buyer. It is an important and unavoidable cost, and moving in with a proper interior is a good option that can save your budget and further interior costs.
PROPERTY INSPECTION CHARGES
Obtaining a house loan from a bank will require an inspection of the property to ascertain its existence and worth as well. Investigate the developer’s credibility. The bank did not charge for any inspection, but the inspection agent can ask for a fee.
Preferential location charge
Few builders do charge depending on the environment and the view surrounding the society or house. Living in apartments that are overlooking the sea will come with an extra charge for the higher floors. So one must aware of this aspect before looking for a home with preferred surroundings.
In addition to this, in case of resale, you may have to pay Transfer Memorandum (TM) charge to the local body or a transfer charge to the the association for transfer of property ownership.
Home and Contents Insurance
It is common for homeowners to protect their homes and include contents such as expensive appliances with home insurance and continents policies.
Property insurance and charges vary on multiple factors such as property type, location, the value of contents, and so much more, so it is a good idea to compare different quotes.
A Lawyer or Conveyancer fee
The legal process of buying a property includes complexations like managing the documentation and settlement of your property sale. Therefore, an expert is needed for a smooth process and property settlements, which could be charged accordingly to their standards.
Conclusion
These extra costs put together can push up your house’s actual cost by 10-15%. While it is noteworthy fact that, the bank or lender will not include these costs while finalizing the loan amount. The sanctioned amount will be based only on the worth of the property valued on inspection. Thus, you must account for all these additional expenses while estimating the overall cost of the house and ensure their arrangements for them from the time you start planning.
Every expense is a part of all financial arrangements made necessary to survive besides enjoying the comfort of lifestyle from the metro trams to roadside “Thekas”. This level of comfort costs certain expenses, which is an essential ‘subscription’ for your leisure time. However, the costs and expenses vary across every town, village, and metro city depending on specific lifestyles and circumstances. The data collected by PeProp Money highlights the cost of living in a few of the considerably ‘expensive’ cities of India.
The cost of living is referred to the basic expenses such as housing, food, taxes, and healthcare in a certain place and time. The ‘ cost of living index’ contrasts the costs in major cities with living costs in metropolitan areas. The index measures the overall costs by combining the expenses of various living expenses to provide an idea of cost standards to workforce entrants. As college currently employed job seekers and graduates compare employment alternatives and consider relocation, the index gives them a snapshot of rental, transportation, and grocery costs. One fun fact is, 4 out of 5 of the world’s most expensive cities for emigrants are now in Asia.
Here is cumulative data for the Cost of living of Metropolitan and metro cities of India –
Mumbai – Mumbai is the 6th most populous metropolitan region in the world to this day encompassing a population of over 23 million. Lifestyle is immensely varied in Mumbai. The lifestyle choices get altered with the type of property owned, the number of people residing under one roof, the mode of food choices, communication, and most importantly, the area of residence. Known as the city of ‘DREAMS’, the city comprises satellite settlements and metropolitan developments with a majority of the tenants and home seekers in its eastern and western suburbs. According to a survey, it would cost around Rs 900 for one’s meal in a ‘decent’ restaurant. A local metro costs around Rs 360 for monthly a transport pass. The monthly electricity bill and broadband connections add up to Rs 4819 (minimum). While the accumulated cost for the school is around Rs 2, 38,489 per annum. The cost of 1 BHK apartment ranges from 1.5 to 2 cr while the rental expenses cost around 2500 on average. In the posh localities, it might exceed 2.5 lakhs per month. However, a room on shared bases costs around Rs 10000 to Rs 20000 for a bachelor. Thus living cost in Mumbai ranges from Rs 40000 to 2 lakhs per month. Well, Mumbai, thus named the financial capital needs no elaboration— the city fosters its dreamers with skyscrapers and warm breeze dense over the shadows.
Delhi – “Delhi constantly has new offerings” this could be called the blatant truth if not for the distorted air quality. However, on the other hand, Delhi offers locations more likely to a ‘Delhi Wala’s’ heart than it can be imaginary for a Mumbaikar. It offers more spaces with an immensely growing population as well as growing commercial, financial, personal, and social needs, especially in youth. Delhi’s cost of living has become expensive. The living costs and varied expenses depend on the number of members, employment status, type of occupation, domestic services required wages, and overhead expenses. The monthly accommodation costs around Rs 10,000 for a bachelor. With a transportation cost of Rs 2500, groceries spending Rs 10000 to Rs 15000, and overhead expenses amounting to Rs 6000. Mayur Vihar, street, Vasant Kunj, and CP Park are a few of the prime localities. In contrast, Mumbai has a higher cost of living than Delhi to provide for a comparative degree, as the cost of accommodation rises. However, the overhead and transportation expenses are higher in Delhi. This differentiates the property value for both the cities and the difference of matter.
Bangalore – The city is a hub for IT Sectors, ‘Silicon Valley’ has become the new hub of the educational sector as well. The city offers economic opportunities for the entire world comprising all sorts of investments. Suggested to be one of the smartest cities, over the last decade Bangalore has experienced a revolution in the costs of living in every aspect of livelihood from profession of practice, the number of members in family, financial status, educational cost, utility necessities, especially in transportation and property size while weighing living cost. Monthly rent for a 1 BHK apartment would cost a minimum of Rs 11000 while a 2 BHK apartment would begin with the range of Rs 15,000-Rs 16000. The transport facility costs around Rs 1500 per trip. Electricity bills range between Rs 3000 to Rs 3500. Groceries and miscellaneous bills range from Rs 5000 – Rs 5400. The average cost of living lies between Rs 40,000 to 45,000 for a family including travel expenses.
The domestic amenities in Bangalore seem affordable, it is noteworthy to pair up the services for an individual.
These three cities are hubs for the business sector however, the livelihood varies so do the prices for accommodation.
To conclude, A person relocating to prominent places needs a safe place to call it home. An individual must normally look for areas with. However, these areas offer a range within budget. An individual needs to shuffle and look carefully into the matters of property. Apps like PeProp Money offer a common platform for all property matters such as selection and comparison, contrasting all of the pros and cons of the property. The app offers an appropriate list of areas and the final cost of the property, as opted for by the dealers. The final deal is based on accounting for everything the location and the property offer. PeProp persists to expand the viewpoints of its readers through this article.
With a target price of Rs 1,304 per share, renowned brokerage firm ICICI Securities has assigned a “buy” ranking to Macrotech Developers Limited. It is likely to get a 26% return on buying the stock at the current market price. Macrotech Developers is a midcap Real Estate sector company with a market capitalization of Rs 49,860.43 crore.
Returns & Stock Outlook
The Current Market Price (CMP) of Macrotech Developers on NSE was Rs 1,035 per share. On 2 February 2022, the stock reached a 52 week high at Rs 1,392 per share. While at Rs 814.20 per share, it recorded a 52-week low on 26 May 2022.
It was listed on 19 April 2021. The stock in its listing has produced multi-bagger returns of 122.46 percent. In the last 1 week and in the past month, it has dropped 3.4 percent and 2.03 percent, respectively. However, over the previous three months, it increased by 5.61 percent. In the past year, it has given a 17.01 percent negative return.
On track to exceed FY23 sales guidance, buy for Rs 1,304 target price
As per brokerage, on a combination of monetizing ready/completed inventory and fresh launches, Macrotech Developers (LODHA) achieved its highest-ever October-December sales bookings in Q3FY23 worth Rs 30.4 bn (Isec estimate of Rs 29.0 bn).
The brokerage said that the firm has provided FY23 sales booking guidance of Rs 115 bn (Isec estimate of Rs 110 bn), considering that the company has already achieved 9MFY23 sales bookings of Rs 90.4 bn (79% of FY23 guidance). We believe that the company is on its way to exceed its sales forecast. The company’s net debt of India’s business decreased by Rs7.5bn QoQ to Rs80.4bn as of December 22. The company targets further growth over the period in annual sales bookings, a strong business development pipeline (the company has added projects with GDV of Rs 178.0 bn in 9MFY23), and expansion into Bengaluru and Pune Markets remains key.
Further, it added, “We retain our BUY rating with a constant target price of Rs1,304/share. A slowdown in MMR market and rising interest rates are major threats”
Disclaimer
Any losses incurred as a consequence of decision based on the article are not the responsibility of iPropUnited, the author, and the relevant Brokerage firm. The stock has been picked from ICICI’s Securities brokerage report. iPropUnited advice and encourages its readers to speak with qualified professionals before making any investment decisions.
Ahmedabad: The state government has brought in checks to prevent the abuse of the ‘power of attorney’ documents, in order to stop fraudulent sales of properties belonging to NRGs.
This month two critical circulars have been issued by the revenue department. An NRG or person living outside the state giving permission to their agents to execute the sale of a property must now submit an additional document stating that they were alive at the time of the sale. The representative could be the third party. According to the rules, the notarized declaration should be sent in a sealed envelope and open only in front of the sub-registrar.
A senior revenue officer said that the revenue department directed that the declaration must be filed by the NRI from the application date for execution of the sale deed.
There have been numerous instances in which customers purchased NRI-owned properties in Ahmedabad and other cities of Gujarat through agents who possess power of attorney, only to find later others claiming their stakes in the property.
On January 9 and January 10 the superintendent of stamps, Jenu Devan, issued two circulars regarding this. The January 9 circular referenced the Gujarat Registration (Amendment) Regulation 2023. It replaced the relevant rule, filing of “declaration by a power of attorney stating that the principal (owner of the property) is alive”, with “declaration by the principal stating that s/he is alive”.
Revenue official further said, “This means that instead of the power of attorney holder filing a declaration that the NRI owner is alive, the owner has to file a separate declaration and post it in a sealed cover to the sub-registrar”. The declaration should include the date, preferably a day after the filing of the sale deed.
The NRI seller has to state in the separate declaration on a Rs 50 stamp paper that s/he is alive while issuing a power of attorney, have not revoked nor canceled a power of attorney issued, and there are no any legal proceedings or dispute ongoing in any court or tribunal in India regarding the property in question. The revenue officer added that the NRI seller also has to certify that if the transaction is found to be fraudulent, only he/she will be responsible.
The Nagpur Municipal Corporation’s (NMC) rebate system falls short to convince citizens to pay property tax, only 40% of taxpayers have made payments on or before December 31 and the remaining 3.92 lakhs have missed the chance to avail rebate, and will have to pay a penalty of 2% per month.
In the current financial year, the civic body’s data showed that the total demand for property tax increased to Rs 950 crore due to revaluation and reassessment drive carried out in the last few years. As per the earlier system of issuing demand in October-November, the NMC started to issue demand notes to all 6.5 lakhs taxpayers in April.
Rs 256 was the demand for the current fiscal out of the total of Rs 950 crore. According to the rules the citizens have to pay tax on or before December 31 or will face a penalty of 2% per month. About 39.69% of the taxpayers paid the tax on or before December 31. Total recovery was Rs 145 crore, of which Rs 90 crore was for the current financial year and the remaining Rs 55 crore was arrears.
The target for the current financial year is to collect Rs 289 crore, but considering it to recover by December 31 seems a difficult task. 2.67 lakh (41.08%) citizens had paid tax on or before December 31 in the last financial year, which is slightly higher than the figure for the current financial year.
Municipal commissioner Radhakrishnan B launched a rebate system during the last fiscal to convince the citizens to pay taxes on time. As per the rebate system, citizens can avail 10 percent rebate if they pay tax between April 1 and June 30. NMC gives a 5% rebate if payment is received from July 1 to December 31. However, the rebate system fell short to make any changes to the collection.
Around 82,332 citizens paid tax by June 30 and availed rebate of 10% in the current fiscal while 1,75,597 persons availed 5% rebate who paid tax between July 1 and December 31.
Despite the civic body floating an amnesty scheme two years ago, the taxpayers did not pay arrears. NMC had offered an 80% waiver of interest, however, only 11% of defaulters had positively responded.
NMC deputy commissioner Milind Meshram told TOI that strict action would be taken against nonpayers. Tax is now NMC’s main revenue source for providing various civic amenities to the entire city, therefore citizens should take property tax seriously. Citizens delay paying taxes as much as possible, thinking that they will not face any penalty as it will be waived. NMC’s tax is less than even gram panchayats and grade-C municipal corporations like Amravati.
“Most defaulters are big establishments and slum-dwellers. Earlier, NMC staffers used to collect tax by going door-to-door. Majority of people used to wait for staffers to come and pay tax. We changed this system to distribute demand notes online, manually, and allow payment of tax through non-cash systems including online payment. The number of taxpayers paying online is also on the rise”, an official said.
The official added there is a rise in the number of taxpayers paying tax for current fiscal. However, arrears remain a major worry. “We had brought around 1.7 lakh open plots under tax ambit. We levied tax going back six years. Owners of these open plots are not paying tax, fuelling arrears. Additionally many are not obtaining the sanction of layout, building plans and occupancy certificate (OC), so they are not coming under tax ambit. We are hoping to increase numbers of those paying tax once mutation and assessment go online”.
Pricing real estate property is always been a vital step. A suitable price will depend on a lot of factors. However, an easy way to determine the price would be to take into consideration the average sale price at which similar properties were sold in the last 3-6 months in the neighborhood. A seller can either self-assess his property or resort to an external source such as a real estate agent, to determine the proper market value of the property.
Choosing an agent will ease the selling process, as the agent will be in charge of advertising, showing, and completing the paperwork and legal requirements of selling the property.
Getting an agreement signed with your agent. The contract will detail any commissions, the duration of the agreement, the advertising costs process, and the estimated sale price.
Listing a property in a prescribed format, basic details related to the property such as the type of the property, exact address, the selling price, or tentative rent. The seller can advertise his property on various mediums such as the internet, pamphlets, classifieds, or through a broker. Once the buyer is identified, it is advised to do a background check on the buyer with special reference to his financial capability and reliability.
Sellers must obtain required No Objection certificates from various authorities (Society, Income Tax Authority, Municipal Corporation, etc).
Preparing Vendor’s Statement for the property and the Contract of sale through your lawyer or attorney. This will include all of the details required for the purchaser.
Under the contract, both seller and buyer’s lawyers and banks will work out the details of the sale to ensure both parties meet all legal and financial requirements followed by the settlement day.
Not all states require sellers to hire an attorney to the closing. Still hiring one could cost a couple of thousand rupees, but the expense might be worth it to protect such a large financial transaction. An attorney can help with paperwork, review contracts and documents, identify potential issues, and ensure the sale goes in a proper way.
Required documents for selling a property
Documentation is the most vital stage, as there have been a majority of property-related disputes regarding insufficient and improper documentation. Therefore it is crucial that both the buyer and the seller give their due consideration to the documentation of the deal.
Here are the list of documents required while selling the property-
Letter of allotment
This letter confers allotment of the property to you from the relevant society or authority is a primary document you need to have in order.
Sale deed
The original sale deed from the previous owners of the property is required while selling a property. The sale deed is important as it traces the ownership of the property and it is necessary to prove the chain of previous agreements with past owners.
Sanctioned plan
A copy of the approved building plan and occupation certificate issued by the competent authority will be required where the document has been lodged for registration.
Society documents
The buyer is entitled to ask for the original stamped receipts of payments made to the builder or developer by the previous and present sellers. While selling a property the seller is required to obtain permission to transfer the property from a competent authority, development authority or society.
Encumbrance certificate
The encumbrance certificate is required in property transactions to indicate the free title. The buyer wants to make sure that the land or property does not have any legal dues while buying an apartment, land, or house.
Sale Agreement
Both parties can enter into an agreement to sell and confirm the terms and conditions once the documentation process is done. Thereafter they can execute the sale deed based on the agreement to sell. The sale agreement is signed and executed by the seller and buyer on non-judicial stamp paper. It is one of the most powerful documents in the transaction as it has legal value and can be produced as evidence.
Conclusion
It is important to consider that there are several expenses while selling the property. The costs of selling a property typically include repairs and improvements, staging, utilities, real estate commission, pre-inspections, cleaning, home warranty, capital gains tax, closing costs, remaining mortgage balance, and moving.
Larsen & Toubro came into an agreement to sell its entire stake of 99 percent in Think Tower Developers Private Ltd on January 5.
On Thursday, the engineering and construction conglomerate said that a subsidiary of L&T, L&T Realty Developers has agreed to sell its entire stake in Think Tower Developers Pvt Ltd.
It is expected that the agreement will be completed on January 30, which is subject to the completion of closing conditions.
Larsen and Toubro (L&T) said in a regulatory filing that L&T Realty developers Ltd, has entered into an agreement to sell its complete stake of 99 percent in Think Tower Developer Private Ltd (TTDPL), on January 5. The filing added that TTDPL will cease to be a subsidiary company.
The company said that the entire stake held by L&T Realty Developers Ltd is being sold to Pratik Harshad Kalsariya, who does not belong to the promoter group.
Renting a property includes paperwork, marketing the property along with responsibility toward the tenants. This also includes some challenges including searching for the right tenant for the property and ensuring that the property would not be used for any commercial purpose.
Below are the key points that need to be considered while renting the property-
Fixing rent: Fixing the rent amount is the initial and vital step toward renting your property. But before fixing the rent amount doing thorough research about the market and current trends is a must and will ease the process of fixing rent. Higher rent than the trend would make it difficult to find a tenant, or ensure that the rate is justifying the property by offering extra furnishings or any other services.
Rent Agreement: The agreement should be drafted with the utmost care and make sure it is properly signed. Both parties should comply with the mutually agreed conditions. In case of a dispute between the two, it plays a crucial role.
Register the Lease agreement: It is important to register the lease agreement after preparing it. Only the registered lease agreement can be used as a piece of evidence in court in case of any litigation. Additionally, you must familiarize yourself with the Fair Housing Amendments (FHA) Act.
Hire a professional: Hiring a professional smoothens the whole process by giving personalized service to both the owner and the tenant. One can avail of professional assistance services provided by many companies, as a part of their maintenance facility. They provide services such as creating agreements, paperwork, and tenant verification. A lawyer can also assist to navigate the landlord-tenant regulations, which vary from state to state and help you understand your community’s rules governing rental properties.
Furnishing details: List out the furnishings with each set of details for fittings and features. This would help in case of any damage done by the tenant, then a penalty charge can be levied. Owners should check the condition of the house before renting out it to avoid any clash in case of damage.
Police verification: This step must be considered while renting out your property, as it lowers the risk of renting out to a person with a criminal background, and not doing so is a punishable offense under section 188.
No commercial usage: Tenants sometimes use rented residential property for commercial purposes such as tuition centers, small offices, cloud kitchens, etc to avoid paying high rents. Therefore making it clear in the rent agreement that the property would not be used for any commercial purpose will help to avoid such a situation and also have frequent visits to the house.
Advance and rent increase: Taking two months of rent in advance is a common rule for every tenant to pay a set amount in advance. The owner is entitled to ask advance amount as a security or preventive charge for any damage to the property. Increasing the house rent annually is also a general practice.
Understand the Responsibility Involved: There are numerous benefits of renting a property such as the ability to deter the vandalism that often plagues an empty home, the ease of tax breaks, and the ability to generate income that covers the bills and possibly even creates a profit.
It’s important to note that the Internal Revenue Service (IRS) typically requires that landlords report rental income on their tax returns.
Choose tenants wisely: Choose your tenant very carefully. You need to be able to depend on this person to keep your home in good condition rather than just to pay the rent on time. If the person is someone you may be cohabitating with you also have to learn their habits to avoid any unwanted surprises. It is advised to run a deep background check while screening a potential renter.
Make home ready for tenants: Sometimes tenants are more attentive and choosy, because of the high expectation and increased availability of rental homes. Owners should clean homes and make sure appliances are in good condition and working properly. Ensure the rest of the area is secured if you are renting out a room or area within your house.
