Owning a property is a real-breaker. It's a great long-term investment that really pays off in the future. Whether someone chooses to build a home or
Owning a property is a real-breaker. It’s a great long-term investment that really pays off in the future. Whether someone chooses to build a home or shop on their plot or not, they can always rent the constructed space for more profitable returns. These days, it’s pretty common to rent out multiple properties, a fully-constructed house or a single portion, to families, or individuals. Sometimes the houses are even rented for commercial purposes too.
Despite the regular side income that you receive, as a property owner, you may sometimes suffer more uncalled damages too. These damages occur due to the tenant’s negligence, and carelessness. Sometimes it can be accidental. Whatever the case may be in such circumstances both parties may argue making things worse.
Renting shouldn’t be a bad experience either for the property owner or the tenant. Read this blog to learn simple tips to help avoid a heated conflict with one another at the time of renting the place.
1- Put It On The Deed
It’s a fool’s pride to rely on a good word of mouth. Make the verbal agreement legal and binding in hard form with a rent deed. It’s a primary document that states are clauses and conditions for both parties. Signed upon, and sealed. All responsibilities of tenants and property owners are stated clearly to avoid any bad situation.
However do remember, regardless of the rent deed, the property owner does hold the right to make any changes. Let’s say you want to rent your 5 Marla house to a small family of three in the capital smart city in Islamabad. It’s a beautiful location, fully decorated with facilities and amenities for the residents.
So before a family agrees to become your tenant, share all the pros and cons of living in a housing scheme. Since Islamabad is a prime location when it comes to rental living, as a property owner you can increase or reduce a tenant’s tenure and mention it on the deed.
2- Dealing with Property Damage
Even more than often, property owners are unhappy with their tenants for one sole reason – the damage to the property. It’s concerning because all the wear and tear is an added expense. A calculated cost of repairs and damage should also be mentioned in the rental deed. This way none would be exploited in terms of money.
Besides, use your common sense, and apart from writing it down, do have a clear discussion with the tenant at the time of finalizing the deal. In case of any damage that may occur due to the tenant’s negligence, charge them fairly.
3- Ordinary Wear vs. Deliberate Damage
Not all wear and tear falls under the negligence of the tenant. With time certain aspects of the house will fall apart if not taken care of properly. When renting a property, no matter how new or old, you must be able to differentiate between the type of deterioration.
Before new tenants move in, conduct a house inspection. It’s the best way to evaluate which part of the house needs serious repairing and replacement. Check all the windows, mirrors, plaster, water suction motor, water tank, geysers, cupboards, etc.
If everything is working smoothly (as it should) then the house is good for the renting purpose. If not, give at least a month’s gap before letting a new tenant move in.
4- Deed registration
All landlords and tenants should get the deed registered from the respective legal authorities. Once registered properly in a local police station of the area, the officials will ask for basic formalities.
Since the population is increasing in cities like Islamabad, Lahore, Multan, Rawalpindi, etc, it is compulsory to be able to provide a safe home. But for landlords, it’s a guarantee that they are not being scammed into something shady.
Renting or lending properties is an old practice in Pakistan. Currently the high inflation, low employment rate, and pandemic have affected the standard of living in more than one way. Choosing to rent out a property in a housing scheme is a safe option as long as you follow the tips mentioned above for your legal safety and for the upcoming tenant too.