Tag rent

As a property manager, you have to manage routine tasks and staff members and adhere to local property management laws. Of course, the rental property management experts will reveal that you can always fall back upon legal advice to make sure you’re staying within the boundaries of the law.

However, read on to know more about the important considerations when you’re renting properties.

Renting Properties: 6 Do’s and Dont’s

Here we have 6 Do’s and Dont’s for homeowners and property managers to adhere to when renting out properties.

• Don’t: Make a stopover.

If you rent your property, remember that your tenants have a right to their privacy. So, never drop in unannounced. Rather, you should give advanced notice if you have to go over for repairs, inspection works, or maintenance jobs.

Do: Make use of mobile communication tools.

Because dropping in unexpectedly can disturb the occupants, you might want to consider using mobile communications tools (such as sending text messages or emails) to announce your arrival beforehand. By doing so, the residents remain informed and are better prepared.

• Don’t: Follow an irregular screening process.

The renowned rental property management companies adhere to a uniform screening process and avoid discrimination among applicants. Remember that discrimination based on gender, caste, color, among other considerations, is against the law.

Do: Conform to a consistent screening process.

Be consistent when it comes to screening applicants. A top-ranked property management company in Delhi endorses using technology to develop a standardized screening process to make things easier.

• Dont’s: Avoid raising rent charges midway

You’re breaking the law if you’re increasing the rental charges in the middle of the lease period. Only if you’re rendering additional services midway, you have the right to charge higher rent.

As per rental management laws, you can increase the property rental costs only during a new lease or lease renewal.

Do’s: Follow your lease terms.

As part of good rent management practice, both parties should stick to the lease terms. If any party is not adhering to the stipulated conditions, they are liable for punitive action.

• Don’t: Expel lessees to sell your property.

Property owners have the right to sell their homes only after the expiry of the rent period, not before that. A reputed property management company in Delhi NCR will suggest buying the renters out of the lease before the lease ends if you want to sell your property before the lease expiry date.

Do’s: Use online platforms to share information.

The benefits of using an online portal are manifold. Such platforms help to share maintenance updates, lease agreements, and property details.

• Don’t: Withhold the Certificate of Occupancy.

Under property maintenance services, you’re advised to produce a Certificate of Occupancy to the renters to confirm that you own the property. When you do so, you can assure the occupants of a safe dwelling place.

Do: Ensure your property conforms to the local codes

As part of property management services Gurgaon, property managers are required to adhere to all the local codes. These include inspecting the property periodically and executing the mandatory maintenance jobs.

With property management software, you can also check the completed jobs and pending works – all of which ease your workload.

• Don’t: Overcharge for a rental deposit.

Check whether you can overcharge the tenants, depending on where your property is located. In some cases, you cannot charge more than one month’s rent. Always comply with local rules to be on the safer side.

Do: Mention deposits in lease agreements.

To maintain full transparency between both parties, you must mention the rental deposit amount in the lease agreement. Renters are entitled to get back the deposit money when they’re moving out. In case of property damage, landlords can deduct the money from the deposit amount. Here, make sure that everything is in writing to protect everyone’s interests.

About LuXia LLP

At LuXia, we understand how important it is to comply with property management laws. We adhere to the given rules to avoid penalties and other hassles. As a general rule, we ensure all involved parties study and follow the local laws.

More so, we are transparent in our dealings with our clients and follow a regular screening process. Also, we use advanced digital communication tools to keep all parties informed about the latest updates.

contact@theluxia.com |   +91 9810505543

Whether you’re looking to rent a home or buy one, you must base your decisions on your needs. Of course, with property ownership, you can enjoy the benefits of capital appreciation over time. But, conversely, when it comes to renting a home, you have the flexibility of using a property as and when required.

Going by your financial position, you must opt to either buy a home or rent one.

Scroll down to know about the different factors to consider before deciding whether renting or buying is your best bet.

• Consider annual payments

Before buying a home, the average person considers all the related aspects. While purchasing a home is an emotional decision for some persons, others prefer buying property over renting for the convenience benefits.

However, the property maintenance experts opine being financially prudent. They recommended buying a home if that is more profitable for you. On the other hand, you might want to consider renting a house if doing so makes more economic sense.

An important aspect that requires consideration when deciding between buying or renting a home is to compare the annual expenses.

In the case of home purchases, you have to pay a mortgage. A mortgage has two components: interest and principal. Because the principal is part of your savings, you should not include this component when calculating your expenses.

A prominent property management company in Delhi NCR will suggest using the interest component for calculating your expenses. This is because interest comes under your expenses. For example, your costs for buying a home include insurance, maintenance costs, property taxes, and interest (after subtracting the tax shield).

As far as your expenses for renting a home go, your calculations are relatively simple. First, you have to pay a deposit to your landlord. Deposit is not an expense but an interest-free loan, for you get the money back after the stipulated rent duration.

Other than that, you have to pay monthly rent. Here, you may want to incorporate the opportunity cost of your down payment if you’re buying a home. As such, you would earn income on your down payment money if you were not purchasing a home. So, you must deduct this amount from your monthly rent charges.

Thus, you have to compare your annual expenses of renting a home or buying one beforehand to make an informed choice.

• Future annual costs

Buying or renting a home are not short-term decisions. Also, you have to be committed to your choices for many years. So, comparing annual figures for the current year is not sufficient. Instead, it would be best to study your future expenses and cash flow to get an accurate picture of your costs.

Now, the story gets complicated because you cannot judge your property capital appreciation over the years. Yes, supposedly, you alter your capital appreciation by even a small percentage. But, the net present value of your property can change by a considerable amount.

Predicting future property prices is not easy too. So, the property managers tell you to be wary of your future assumptions when calculating your future property expenses for a precise representation.

• Risk for appetite

When concerned with your rent vs. buy decisions, your risk appetite also matters. If you have a risk appetite, you may think of taking a mortgage. With a mortgage, your risk increases because of the interest that you’ve to cough up. In addition, your net worth can change significantly if you’ve taken a mortgage due to market fluctuations. The reason being, a mortgage is a highly leveraged bet.

The rental property management professionals will recommend renting a home on the flip side if you’re not much of a risk-taker. You can always change homes and neighborhoods if rent rates rise in a specific locality.

• Constancy Vs. Flexibility

While owning a home provides stability, renting a house offers flexibility benefits. As a homeowner, you do not have to move homes frequently. And if you’re looking to experiment with different apartment sizes and localities, renting seems a natural choice.

In all, given your requirements, you should decide whether to buy or rent a home.

About LuXia LLP – A Property Management Company

At LuXia, we manage properties of landowners who reside elsewhere. Approach us to know about your various options for renting a home. We are well-versed with the real estate market and can offer houses on rent at competitive rates. Be assured that we will provide you with the best options as per your budget and preferences.

Alternatively, if you’re a property owner looking for top-ranking property management services, you can contact us to know more about how we can help you get the best deals.

As a landlord, you know that different tenants vary in their housing requirements, including their interior design choices.

Now, the terms rent and lease are used interchangeably. However, leasing a property is not the same as renting a home. Of course, the lease rent meaning includes renting accommodation. On the other hand, rental agreements are categorized further into lease contracts and leave & licensed ones. No doubt, the terms and conditions of the lease agreements and leave & licensed ones differ in various aspects.

Yes, both terms refer to two different kinds of arrangements. Of course, both lease agreements and rental ones are legally binding. Even so, if you talk to companies offering property maintenance services, they will tell you they serve different purposes.

Now, depending on your requirements, you should opt either for the rental agreements or lease one. Even so, you must first understand the difference between lease and tenancy.

What is a lease agreement?

The definition of a lease is defined under Section 105 of the Transfer of Property Act 1882. Under this Section, the rent management professionals will disclose that the lessee has rights to enjoy a property for an agreed-upon price, or something of value, paid periodically. Also, the lessee has to pay the landlord as per the terms of the contract.

Rent agreements qualify as leases if they fulfill the below-listed conditions.

• The landlord transfers the rights to use a property to the tenant.
• The arrangement is valid for a stipulated duration or perpetually.
• The tenant must pay the landlord monthly in exchange for the transfer of rights to enjoy the property. Instead of cash, both parties can also agree to the tenant paying via rendering a service or anything that holds value.

Under lease agreements, landlords agree to let out their property for a long duration; the time ranges from 3 years and goes up to eternity.

The rental property management experts will also reveal that a lease agreement must be signed and stamped, and registered. After registration, terminating lease agreements is not easy.

What is a rent agreement?

Rent agreements with a validity of 11 months come under leave & license contracts. Also, upon consulting the rental management specialists, you will know that such agreements are not valid under the rent control laws.

Different states vary in rent control laws; only rent agreements with a minimum of 1-year validity come under the purview of such laws.

The Property management company in Delhi will also explain that owing to the rent control laws. Landlords may not find it easy to review rents and remove tenants.

Key Differences between lease and rent

Here we discuss the lease vs. rent house agreements.

• Parties

The parties in lease agreements are the lessee and lessor. Landlords and tenants are the concerned parties in rental contracts.

• Type of Contract

As seen earlier, rent agreements can be either a lease or a leave & license contract. Nonetheless, rent agreements come under leave & licensing arrangements and not lease ones.

• Ownership

Whereas lease agreements give ownership rights to the lessor, rental agreements retain the ownership rights with the landlord.

• Responsibility for maintenance works

Under lease agreements, the lessee holds the responsibility of maintaining the property. The tenant is responsible for the property maintenance works in rent-based contracts.

• Time

Lease agreements have a long duration, rent agreements, short periods.

What is a leave & license agreement?

The leave & license agreements are detailed under Section 52 of the Indian Easements Act 1882. The Property management services Gurgaon companies will further clarify that under leave & license agreements, the owner has legal possession of the property. Simultaneously, the licensee is allowed to use the premises for specific purposes.

To avoid legal hassles, most landlords and tenants enter into rent agreements valid for 11 months. An 11-month rent agreement, working as a leave and license contract, is not reasonable under the rent control laws. The laws apply only if the rental period is more than a year.

OVERALL

So, we have seen how rent and lease agreements vary. A property management company in Delhi NCR will recommend going by your needs when you’ve to choose between both options.

If you’re looking to rent a home for a short duration, you may want to consider the rent agreement option. Here, besides greater freedom, you can also terminate the contract whenever you want.

According to the companies providing NRI rental property management services, lease agreements are more common in the commercial real estate sector, where the process is more formalized.

contact@theluxia.com |   +91 9810505543