WHAT TO KEEP IN MIND WHEN RENTING OUT YOUR FLAT
The interest component under home loans can be claimed as separate deduction under section 24
If you are renting out a residential property, you should pay attention to the lease document. In order to avoid pitfalls and disagreements from cropping up during the tenancy, one needs to ensure that the rental agreement is reasonable and not unilaterally skewed towards either the landlord or the tenant. There are a number of essential components that every residential lease should have which ensure that your interests are not compromised later.
Some of the key components of the lease agreement include the amount of monthly rent, the payment mode and payment due date, and the periodicity. Also, the lease agreement clearly demarcates the responsibility of the tenant to pay the utility bills and the periodic maintenance charges.
Another critical part of the rental agreement is the tenure of occupancy and when the lease will expire. The agreement should ideally have termination clauses as well and how many months’ rent would be retained, in case of any whether the document is a settlement which would require registration or is only a record of a past settlement would depend on the nature of clauses contained. termination. It should also have clauses related to premature termination of the lease and the notice required for exercising such actions.
It may clearly spell out that the premises should not be used for commercial uses including offices etc. Also, it can put restrictions on the number of guests the tenant can have, for long periods. It may also prevent any sub-leasing of the property by the tenant.
The agreement may spell out clearly the responsibilities of the tenant in terms of maintaining the decorum of the housing society and to abide by its rules. It can also spell out the responsibility of the tenant to maintain the property in good condition and that she/he will be held responsible for any damages beyond normal wear and tear. Normally, the landlord is responsible for the maintenance of super structure and the tenant for the day to day. It spells out the property tax. It is the owner’s responsibility to make complete payment of his property tax on time. However, in case the lease deed executed between you and the lessor contains a term that the property tax is to be paid by you for the duration of the lease, then it will be your responsibility to make timely payment of property tax. inspection rights of the landlord. It also states whether the landlord is required to give either a verbal or a written notice before entering the house or whether they are free to drop in at any time, unannounced. If they are required to notify the tenant ahead of time, how advance should the notice be? Apparently, many leases reserve the right of the landlord to enter the house at will.
It is important to get the rental agreement registered since it is admissible in court. This helps in case any situation arises in future which leads to litigation. Also, to reduce the chances of future disagreement with the ten- trar’s office. Due to other disputes among us, I wish to vacate the property soon. Can I vacate the property?
— Amit Garg A lease of one year or longer duration, such as in your case, is required to be compulsorily registered. If not duly stamped and registered, such a lease will amount to month-to-month tenancy. Currently, yours is a case of month-to-month tenancy, where both parties have the right to terminate such an arrangement any time. However, registration of the lease deed would have ant and to hold the tenant responsible for any damages they may have caused, it is ideal to record the damages to the property in detail and also keep photo or video evidence for future reference protected the rights of both parties.
I am planning to purchase an under-construction flat in a residential project from the original allottee of the flat. What is the stamp duty payable?
- R Siddharth
No stamp duty is payable on a mere transfer of an allotment of the flat by the present allottee of the flat in your favour.