So you’re looking for that amazing property that you’ve always wanted? Here’s a few things to keep in mind while looking for them.

1)   Costs

Budget the costs of the property when you are considering one. You should check –

a) Rent per month

b) Deposit owner wants

c) Stamp duty on Rent Agreement (leave & License Agreement)

d) Maintenance of the apartment (if the society requires it, who pays it?)

e) Brokerage – So you went the old way, through an agent, you should understand the brokerage charges and get an estimate from him. Some charge a flat fee, some charge a months rent from both the owner and the tenant.

Make sure to estimate and budget these costs or you’ll find your pocket a lot lighter by the time you move into your new place!

2)   Registering Agreement

This is the most important part of the whole process. You kept all of the above things in mind, but didn’t register an agreement on those lines? Well you’ll have a tough time enforcing the above terms that you mutually set. So to ensure that make sure you register the agreement.
Registering an agreement has a lot of benefits –

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3) Tax benefits of renting

When you rent a property, there are TDS implications and there are deductions for the same in computing the TAX. Make sure you get in touch with your tax consultant or chartered accountant to get an idea of the latest provisions at the time of renting!

4) Check the Important clauses of Leave & License agreement

L&L agreement has a lot of effect on your stay. If its clear, and well made, it will bind both the tenant and owner to their promises and reduces surprises. There are often disputes if there is little clarity over important things. Hence it is necessary to study all the clauses of L&L agreement.

Specific clauses and sections you should definitely check are

  • Termination clause
  • Payment terms
  • Schedule-I
  • Schedule-II etc

5) Check the Property

Thoroughly check the property and issues it has so that you don’t get any unpleasant surprises when you move in. As a precaution it is better to take a friend along and inspect the property properly so that incase you miss something, they might spot it. If you live with a spouse or family, its best to take them along and let them have a look too so that you can be sure everyone is comfortable.

This is a brief list of things to check. If have more to add, let us know in the comments below!

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