NRIs to Rent_out a Property
An NRI must be aware of certain facts and figures before renting out his/her property as this can make him aware of the upcoming problem or threat from the tenants. NRIs spend most of the time out of the country. Meanwhile, their property stays unoccupied that why they make profit out of it by declaring it rental property.
The migrant should decide rental rate as per property’s location, connectivity and infrastructure etc. Don’t forget to go for police verification of your prospective tenant. If possible, a letter from his employer should be obtained. The letter from last landlord reveals his behavior, lifestyle and payment history. Valid address proof can be a handy for getting his inquiry.
Renting out a property:
Renting out a property not only helps to generate income but also reduces the chance of getting any issues in maintenance in the vacant house or property. Traditionally, NRIs buy property in India for good investment returns in the future, however, the trend has changed since the past few years where NRIs mostly tend to rent out the properties now as it makes economically a sound decision. Although there are some issues involved in property renting like the refusal of tenants to vacate the house on time and there is no protection for landlords from such issues, several NRIs are still reluctant to give out their property for rent.
It is necessary to do a proper background check of the tenants before they move into the house or property for rent. Employment records, ID proofs, credit checks, previous address of residence, etc. are some of the essential documentation that needs to be checked before renting out the property to a tenant.
Rental agreement should have his all identity and address proofs. How much rent is to be paid should be inclusive in it along with the utility bills payment and recurring expenses. Mention apparently if it is on lease as commercial or residential property, notice period and renewal date.
Are you an NRI looking forward to renting out your property? Nimmadhi helps you with that.