Renting your Investment Property in India has always been a fruitful decision. Any property in India by NRIs can be either sold or rented. However, if the owner does not want to sell or rent the property, he can keep it for personal use. However, it is recommended that every property to be insured under house insurance schemes for NRIs.
There are many NRIs that continue to confuse further between selling or renting the property. However, the decision depends on the location of the property and the current market conditions.
For those who want to rent their properties to get good returns, there are some legal and general points that should be kept in mind:
• According to the guidelines of the Reserve Bank of India, any fixed property can be rented. The income tax is levied on the income from the rent.
• NRI characteristics must require a certificate of the suitability of the transfer of Chartered Accountant
• NGO account is not required. If the homeowner does not have NRO (Non-resident Ordinary Rupee) account, then he/she can rent the house and receive the rent amount.
• Communication with the tenant should be transparent and clear
• Beware of intermediaries or agents that you can later put into a fixation
• Make sure that the means to maintain control over your property, which is miles away
• Be in regular contact with your tenant
• Always financial transactions for rentals, to avoid any expense later
Usually, the tenant’s legitimacy is the greatest concern for the house owner when renting Investment Property. In this situation, it is better to rent investment property to any well-known person. Here are just a few things a house owner should know while he is holding tenants:
• All details of the tenant should be checked before renting Investment property
• The contract signed by the tenant
• The tenant should be kept by the rules of the residence. Like some companies allow only married couples
• Communicate your concerns about the damage to your property to the tenant in advance
• Keep the repair and maintenance of the house to keep a good tenant
• The lease should have a fixed period. You can extend it if everything goes well
• Take a month’s rent in advance for the deposit
There are “tenant screening guides” also available online. The landlord can simply download this guide from the Internet and study it thoroughly to know everything related to the screen or to check the tenant before renting investment property.
After proper thinking and taking into account all legal issues, make a decision to hire your property, then you can list or advertise your property on any real estate website in India.