Why police verification of tenant, necessary documents and written rent agreement is required before renting a house or flat? Read here in detail about these precautions that landlords should take to avoid major legal troubles in the future.
House Rent Rules: Nowadays it is very easy to earn extra income by renting out a house or flat, but handing over a house to a stranger without proper investigation can be a big problem in future. Even the slightest carelessness in choosing a tenant can land the landlord in the clutches of the police station and the court-office. Hence, it is very important to know which papers to get the tenant to sign and what precautions to take to avoid legal mishaps.
Why is police verification mandatory?
The first and most important step is the police verification of the tenancy. Many states and cities have made this process legally mandatory. The verification verifies the true identity of the tenant and whether he has any criminal history or not. If the tenant is found to be involved in any illegal activity in the future and you have not verified it, the landlord may also come under the law. This process greatly reduces the chances of not having to vacate the house or quarreling with the neighbours.
Collect the necessary tenancy documents
Another important thing is to collect proof of identity and address. Before handing over the key to the tenant, the necessary documents such as identity card, PAN card, election card, driving license or passport should be obtained as a xerox copy. Along with this, it is necessary to keep his passport size photograph and permanent address details. If the tenant is employed, his office ID card and address, and if he is a student, college ID and contact number of his parents should be secured in his records.
Details of the written rental agreement
One should never make the mistake of renting a home based on verbal communication alone. A written tenancy agreement must always be made on stamp paper as a rule. The agreement should specify the monthly rent amount, security deposit, the date the rent is due each month, and who will pay the electricity and water bills. Also, the notice period for future eviction should also be written in it. This document must have the signatures of the landlord, tenant and two witnesses. It is also imperative to get the government registration of this agreement as required.
Mode of receipt of rent and maintenance of records
Finally, to maintain transparency in financial transactions always insist on taking rent through bank transfer, UPI or cheque, so that you have a clear record of payment. Keep in touch with the tenant from time to time and update the new record if they change job or mobile number. Renewing the contract as soon as it expires and re-verifying it when a new tenant comes in is the real key to being a secure landlord.
