Meanwhile renting out will be a supply of constant financial gain for several people, understanding its legal involution is equally necessary to avoid any hassle.
Arpita Gupta, a psychologist, who had come to Delhi for her analysis work, was unable to seek out a rental accommodation anywhere around Delhi, where she could put up simply for a few months to complete her fieldwork. The few house owners who were agreeing to rent out their flats to her for a few months, either demanded a high deposit or unconscionable rent. She later contacted her family friends in Delhi, who helped her by renting out their own house to her. With a nominal rental price, Gupta currently shares a space with the family within the 1,600-sq ft, three-bedroom lodging, in conjunction with all support as well as food, laundry of garments and alternative wants.
Renting out a property means that leasing out a particular portion of the property occupied by the tenant throughout the mutually agreed tenure. Tenants currently prefer renting out a portion of their flats, to those who are looking out for short stays. “The idea of paying guests isn’t new however renting out reflects the dynamical social patterns of society. Earlier, cases of paying guests and renting out were few. Now, there’s an increasing demand from folks, who keep shifting to new cities for brief stays. Tenants living in upmarket areas, don’t mind renting out their homes,” says property consultant Manish Gupta.
Regions of India where renting out is turning out to be common:
If predictions were to be believed, there’s a rising trend, among tenants living in Delhi, who reside alone or have nuclear families, to accommodate a guest on rent to employ the additional area and earn a financial gain. This trend is additional visible in areas that have larger flats (large two-bedroom to four-bedroom properties) and big bungalows. The rental rate for renting out depends on the location, the tenant and therefore the length of the stay.
Considering the opportunity, a variety of brokers have started providing such services, through their existing customer base. “The market, however, continues to be rising. Variety of things drive the choice to rent out the property – in some cases, the homeowners live outside the country or they’re simply unaware about it,” says another Delhi-based realty broker, Praveen Sharma.
Benefits of renting out your home:
The direct advantage is income. For people who don’t stay with their families, renting out helps them to earn and also gives them with the company. For instance, Manoj Sharma, who rents out his rental accommodation to 2 alternative individuals in Noida. “I had some smart company of individuals and was able to cut out on the burden of the rent,” he explains. Mr. Sharma had an agreement, where he had to pay Rs 12,000 per month to the owner and he used to receive Rs 7,500 every from his flatmates, thereby, earning an additional Rs 3,000 monthly.
Risks related to renting out:
The biggest risk of renting out is that you simply could get into a legal hassle with the tenant. The upkeep expenses of the house and different finances, like the water bill, electricity bill, etc., are equally divided between the tenants. “In the absence of necessary documentation to include all these expenses, could result in disputes,” cautions lawyer, Ekank Mehra. Just in case of any dispute, all the tenants ought to vacate the property.
The legal aspect of renting out:
According to the law, a tenant cannot further rent out the housing, without the approval from the owner. “It is often safer to bind to an agreement. In such cases, the owner of the property has to be made aware and there has to be an agreement between them too,” Mehra adds.