What a lessee should keep in mind while renting a residential property?
The factors a lessee has to keep in mind while renting a residential property are:
1. Locality: Proximity to transport hubs, schools, hospitals, market, central business district, entertainment centres, hotels, restaurants, pollution levels, safety records of the neighbourhood.
2. Total area of the property i.e. Carpet Area or Built up Area or Super Built up Area.
3. Adequate car parking space.
4. Construction should be of a high quality with good quality fixtures and fittings.
5. Reputation of the lessor or owner. Check around with local sources to find out more.
6. Adequate water supply, electricity and other utilities would be an important factor.
7. Get a good idea of all the costs involved total rent, monthly maintenance, society charges and costs of utilities.
8. List out any other advantages and disadvantages of the property to help make a better decision.
On what basis is the rent charged?
Rent for residential properties is usually charged as a lump sum amount. For retail and commercial properties the rent is charged on the area in possession of the lessee.
What are non-occupancy charges?
The charges levied by the housing society on the owner of a residential flat, for renting out the property and not occupying the property himself is known as Non occupancy charges.
What documents are required to be signed while signing a lease or rent agreement?
For residential properties: rental or lease agreement.
For commercial or retail properties: lease, leave and license agreement, business centre agreement or conducting rights agreement.
What should I look for in a property before renting?
The more you know about the condition of the premises before you rent the better. The following is a good checklist to have before renting:
1. Ensure that the plumbing systems, drainage and sanitary fittings are in good working condition.
2. Check for the quality of the electrical systems, circuit breakers, wires and functioning of light and other fittings.
3. Check for problems with roofing, walls, ceilings, floors & paintwork.
4. Check for the structural stability of the building, basement and other visible structures.
5. Check for the quality of the doors and windows, latches & locks.
6. Ensure that the property has a good water and electricity supply.
How can a lease be terminated before the end of the tenure of the lease agreement?
Under Sec.111 of the Transfer of Property Act, the lease agreement can be terminated under the following conditions:-
1. by efflux of the time limited thereby;
2. where such time is limited conditionally on the happening of some event - by the happening of such event;
3. where the interest of the lessor in the property terminates on, or his power to dispose of the same extends only to, the happening of any event - by the happening of such event;
4. in case the interests of the lessee and the lessor in the whole of the property become vested at the same time in one person in the same right;
5. by express surrender; that is to say, in case the lessee yields up his interest under the lease to the lessor, by mutual agreement between them;
6. by implied surrender;
7. by forfeiture; that is to say,
a. in case the lessee breaks an express condition which provides that, on breach thereof, the lessor may re-enter
b. in case the lessee renounces his character as such by setting up a title in a third person or by claiming title in himself;
c. the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter on the happening of such event]; and in if lessor or his transferee gives notice in writing to the lessee of his intention to determine the lease
Checklist for renting residential or commercial property.
The following checklist a good starting point while renting a property:
1. Current rental trends and prevalent rental rates in the vicinity.
2. Ensure that the property you have identified is the right one for your requirements.
3. Consult an advocate to formulate commercial terms for the agreement.
4. List your requirements with a reputed brokerage firm like Qube Real Estate Advisory LLP .
5. Examine the deeds to establish the ownership of the property by the Lessor, preferably through an advocate. The title of the Lessor must be clear and marketable
6. Finalize commercial terms. Ascertain the rent and other charges like water and electricity charges, society charges & maintenance charges.
7. Ensure that the lessor has obtained no objection certificates from any authorities if required.