Renting a house? Be mindful of these five things
A well researched approach will help you understand the price trends of property in your preferred location and you can negotiate accordingly
Renting a house may be easier than buying a house, but it comes with a host of challenges – right from scouting the perfect property that meets your requirements to the one that fits your budget. Therefore, it is imperative to consider a few points before renting a place.
The price point: As a thumb rule, you must not spend more than 25-30% of your household income on rent. Factor in overhead expenses like monthly maintenance, utility bills, top-up charges and a hefty one-time deposit and brokerage charge.
Size of the property: The pandemic has changed our location preferences when it comes to property-related matters. In the pre-Covid period, the location of the rental property – to be in close proximity to the workplace or children’s school – was the top priority for most. With both work and school going online, preference is seen drifting towards larger-size properties within the same budget, since location is no longer the topmost priority. However, even if one decides to move to the peripheries, it is imperative that the locality has easy accessibility via both private and public transport and the social infrastructure is in place.
Research: For all the tech-savvy millennials, scouting for rental properties online today can be fairly easy and at the ‘click of a button.’ There are umpteen realty portals that list the available rental options along with pictures in a given locality – posted directly by the owner or by the local brokers. For those searching offline, contacting local brokers of a given locality can also help search the right property.
However, it comes at an additional cost – usually one months’ rent as broker fee.
A well researched approach will help you understand the price trends of property in your preferred location and you can negotiate accordingly.
Alternately, social media options like community WhatsApp group or Facebook have become a more informal and popular way of searching for rental options. To avoid broker fee, many owners post their listing on WhatsApp group of the concerned society who then pass on the info to their friends and family. This way both tenant and owner save on brokerage.
Check Property – In & Out: Once you shortlist properties, ensure you make a personal visit. The key thing to consider include – social infra facilities like daily-need shops, entertainment options, hospital, among others. In the absence of such amenities, the day-to-day life becomes very difficult. Once this is ticked off the list and is to your satisfaction, check for any damages within the property including seepage, stains on walls, electrical and bathroom fittings, etc. Try and opt for only damage-free properties.
Check the Contract: It is imperative to carefully read the contract details from a legal standpoint. Some of the key things include the termination clauses, contract dates, penalties, repair costs, visitor limitation if any, rent renewal, etc. Keep in mind that you can claim HRA exemption under Section 10 (13A) of the Income Tax Act on house rent.
(Inputs from Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants)