25 Nov Effective List of Tenant Documentation and Tenant Screening
Landlords need to follow a systematic procedure to rent their property safely if they are not availing service of commercial property management in Pune like cities where crime rate is increasing at a ever rising rate. Here’s are a comprehensive list of tenant screening and documentation to follow.
- Ask questions during initial screening:
- About tenant’s current living situation
- Reason for moving out
- When they plan to shift
- Profession and income
- Assure tenant has a clean background. Whether he can submit reference of previous landlord and reference from the office
- Family size and who all are going to live along
- Initial preparation:
- Define your ideal tenant, whether you need a nuclear family, with/without kids, college goers etc
- Ensure that the tenant has a salary of three times the rent so that he pays the rent comfortably on time
- Collect information on tenants past landlords
- Many landlords nowadays verify tenants activity on social media pages as well
- Take help of a paid services if you are unable to do it properly, many property management firms also do it on their client’s behalf
- Police verification
This is now a mandate; not doing so is punishable under Section 188 of the Indian Penal Code. Apart from that, it is an important part of renting to safeguard landlords from any offense or criminal act done by the tenant.
Documents requirements –
- 2 copies of Police Verification form – duly signed by the landlord
- Two Photo ID Proofs: Tenant’s identity card / Voter’s ID / Driving license PAN card/ Passbook issued by a Post Office or any Scheduled Bank
- AND Proof of Permanent address: Passport or domicile certificate or Aadhar Card
- Photocopy of your Landlord’s Photo ID – (Passport/DL)
- Photocopy of your lease
- 2 passport photographs of tenant
- Rental Agreement and Documentation:
A rent agreement contains all the clauses, terms and conditions. It also serves as a future document to obtain essential services like internet, gas, sim connection, also for applying for driving license or opening a bank account.
Things to include in a rent agreement:
- Title document to prove that person renting the property is the actual owner
- Name, address, father’s name of both the tenant and the landlord
- Limits on occupancy or who all will live there
- Term of the tenancy – whether it is a self-renewing rent agreement or a fixed term lease
- Rent and acceptable payment methods, late fee if any
- Deposits and Fee – Security deposit should be as per law and how a landlord may use or treat such a deposit. Deposit fee not refunded in 7 days after lease expiry is to be paid with the interest for each day’s delay.
- Responsibilities of repair and maintenance
- Who will pay water, electricity and maintenance charges
- Plumbing Checklist to be included and in case of a furnished flat a list of all the furniture and fixtures
- Entry, right to access to property and other restricted activities
- Other inclusions:
- Usually, a lease is for 11 months with a notice period of 2-3 months from either party to terminate the agreement. This notice clause is a must.
- Decide on whether a lease is self-renewable and under what condition it can be called off by either party.
- As per Section 17 of the Registration Act 1908, it is compulsory to get the agreement registered if the lease period exceeds 11 months.
- Cost of preparation, stamp duty, and registration fee should be borne by either or both parties as per what is being mutually decided.
Considering the nature of complexity involved in engaging a tenant, it is always advisable in taking property management service in Pune like cities where property frauds are becoming frequent.