Hiring a place may seem very simple for the Landlord, as also the Tenant. Sometimes these become very unnerving if you miss out on some important aspects that need to be considered before moving into the house / letting out your house. Taking the paperwork lightly may have serious implications for both the parties. Apart from checking out the exteriors and interiors, the legal check on various aspects is equally essential.

Tenants Points to be considered:

  • Check property ownership documents. Conveyance Deed is the best proof, however, Electricity / Water / Gas Bills are also acceptable.
  • If a Broker is involved, his registration should be checked.
  • Brokerage to be paid to the broker varies from 15 days rental to 1 month in North India. It could be more at places. Must negotiate it.
  • Brokerage paid is part of expenses & you can use it for tax purposes. So preferably, pay in cheque.
  • You must inspect the house and see the house in detail before finalizing. Bring out the repairs required, like; toilet flushes, electricity points, modification required for ACs, Doors & windows, etc.
  • Photograph broken or dilapidated fixtures / fittings & exchange it on mail with owner to avoid problems while handing back.
  • Major & Minor Repairs. Major repairs due to fair wear-and-tear are done by the owner. In case of negligence, cost is borne by the tenants. All minor repairs are the responsibility of the tenants.
  • You must read through the RWA by-laws of the society to avoid inconvenience / regrets later.
  • Get a clear idea about the amenities near / around the property, to include public transport, neighborhood gentry, proximity to essential markets, schools, hospitals, etc.
  • Check the safety aspects, especially for working / single women. You could get the crime rate in the area on the.
  • Find out the age of the property. If possible, speak to the previous tenants or the neighbors.
  • For Fully furnished apartments, normally a Lock-in period is required, as expenses are incurred on furnishing the house. Must check the deed in detail, including the rent increase percentage after expiry of contract. It must be mentioned in the Rental Agreement.
  • Lease Deed/ Rental Agreement – A rent agreement or a lease deed is a legal document that contains the details of the rights of a tenant to occupy certain property for a fixed period of time in return of the rent paid by her to the property owner. This agreement is ideally drafted before the tenant occupies that place. Necessary inclusions of the rental agreement or the Lease Deed would be;
  • Include start and end date of the tenancy.
  • Monthly Rent amount payable and the date of payment- should generally be 10th of the month, especially for salaried persons, to avoid cheque bounce.
  • Security deposit amount to be paid. This is refundable & should be mentioned in the Deed.
  • Service/maintenance charges. Is it included in the Rent or over & above the Rent.
  • Responsibility of payment for repair and maintenance.
  • Conditions of termination of Agreement.
  • Notice period for vacating the house.
  • Provisions of electricity, water and power facility & their payment procedure.


Property Owner / Landlord. Rented Property generates additional income by way of lease or rent. But if leased to a wrong person, could cause numerous problems. It requires substantial care and a lot of aspects have to be kept in mind while selecting the right paying guests (PG) or purchasers on rent (rent party):

  • Must check financial capability and background of the prospective tenant (Second party). (Too good offers are dangerous. If the going rental is Rs X and you get offer of Rs 2X, reject it).
  • Avoid renting out to small businesses as they may not be able to service the monthly payouts.
  • Police verification of the prospective tenant is a must. This process helps in background check of the tenant. Not doing this is a punishable offence under Section 188 of the Indian Penal Code.
  • Take the permanent address proof of the prospective tenant.
  • Take the bank statement of the bank from which the payment cheques are made.
  • Take her PAN No and check her CIBIL score to ascertain whether the prospect respects her commitments.
  • Meet the tenants one on one, interact with them and get to know them. Don’t leave it on the broker – his sole interest is Brokerage.
  • Services of Registered Brokers only must be used. If he charges GST (currently 18%), he should deposit the GST & give details of it to you.
  • It is imperative for the landowner to ask the appointed broker to provide the agency’s registration number, valid signature and agency seal/ stamp on every page of the ‘Lease and License’ accord so that the broker can be held accountable for any legal disputes in future.
  • If possible, rent your property to Tenants with families. If renting to Bachelors, obtain “Comfort Letter” from the Employer of the prospective tenant & do a call check with the Company’s HR / Admin.
  • Lease Deed/ Rental Agreement. A rent agreement or a lease deed is a legal document that contains the details of the rights of a tenant to occupy certain property for a fixed period of time in return of the rent paid by him to the property owner. This agreement must be drafted before the tenant occupies the place. Necessary inclusions of the rental agreement or the Lease Deed would be;
  • If the period of time is 12 months or less, registration is not compulsory. If more than 12 months, you are legally bound to register which costs a minuscule amount (nearly 1% of the total rent value, depending on the local laws), making it a very authentic legal document.
  • Clear mention of Dates; to and from.
  • Notice period required from both sides; owner and tenant.
  • Rental value and the security deposit made by the tenant and any advance payments done.
  • The annual rent is generally 2-3% of the capital value and differs according to the location and amenities provided.
  • Date of monthly rent payment (usually around 10th of each month, especially for salaried tenants).
  • Annual increase in Rent Clause.
  • Mode of payment; ECS mandate or Post dated cheques. AVOID CASH TRANSACTIONS.
  • Clear mention of the size of the property and the number of rooms, bathrooms, kitchen, etc.

Wishing you a Happy Letting out / in. You may make lifelong friends with your Tenants / Landlord. Happy Safe homes is what is important.

Reference Link: https://colonelzbricklogic.blogspot.com/2015/10/taking-giving-property-on-rent-our.html