Mistakes tenants should avoid when renting a property

Most people prefer renting a house to buying to meet their temporary housing needs. Besides, renting is seen as a more affordable option, especially in big cities. Whether or not one is seeking a property for rent for the first time, it is advisable to do proper due diligence to avoid any financial or legal hassles later. Some tenants tend to ignore some key aspects of renting a house. In this guide, we discuss the common mistakes that tenants should avoid when getting a property for rent.

#1. Not reading the rent agreement clauses

In India, signing a rent agreement and getting it registered is mandatory if the rental period is more than 11 months. A rent agreement is an important legal document that specifies the terms and conditions of the tenancy. It outlines the rights and responsibilities of the landlord and the tenant, thus preventing any disputes. Prospective tenants should remember to read the rent agreement carefully and ensure it contains some important clauses such as the payment terms, including increase in rent, repair responsibilities, eviction terms, etc. Some renters often make the mistake of studying the agreement and face the risk of disputes with landlords. The rent agreement can be prepared by either the landlord or the tenant. However, most landlords draft the agreement.

Click to know more about the common rent agreement clauses landlord, tenants must include to avoid disputes

Tenants should ensure the rent agreement includes details such as:

• Start and end date of the tenancy
• Rent amount and security deposit payable
• Rate of increase in rent during contract renewal
• Frequency of rent payment (quarterly or monthly)
• Maintenance charges
• Conditions of termination of the agreement
• Notice period for vacating the house

The rent agreement should be signed in the presence of witnesses. Tenants should also ensure they receive a copy of the signed agreement for future reference. Further, the tenant normally bears the cost of preparing a rent agreement and stamp duty that varies from state to state. It is necessary to be aware of the stamp duty charges.

#2. Neglecting property inspection

When searching for a rented property, potential tenants should inspect the property thoroughly. One should pay close attention to the walls, ceilings and floors and look for any cracks, stains or damage. They should inspect the plumbing system in the kitchen and bathrooms and light fixtures. One should inspect the property for dampness, wall seepage issues and pests. In case there are appliances, make sure they are in proper working condition. In addition, tenants should ensure the property meets their space needs and other requirements. Similarly, tenants must look at whether the housing society is equipped with amenities such as elevators, parking, power backup, and water supply.

In case the prospective tenant finds any major problem with the property or there is a lack of facilities, they should discuss with the landlord and check if these issues can be fixed before they move in. At this stage, they can negotiate a lower rent with the landlord in case of a lack of certain facilities in the property.

#3. Not reporting damage or maintenance issues

Some tenants, especially first-timers, ignore the need to report any maintenance issue or pre-existing damages to the landlords. They may be eager to move in and could overlook such issues. However, failing to report even a small damage or maintenance issue could result in disputes or misunderstandings with the landlord. Usually, rent agreements contain a clause stating that the tenant would be responsible for bearing the expenses for any damages caused during the tenancy. Not reporting the pre-existing damage could make the landlords assume that they were caused by the tenants. Thus, tenants may end up paying for the damages they did not create in the first place, or the landlord could deduct the cost from the security deposit. Thus, potential tenants must report such issues promptly and with proofs such as photos.

#4. Neglecting neighbourhood inspection

Renting a house without inspecting the neighbourhood is not a good idea. Nowadays, potential tenants look for properties online. Several portals have the facility of virtual tours and walk-through videos of the properties. This enables easy decision-making for prospective tenants. For example, from the photos of the property and the neighbourhood, one could see if the property is old and if the neighbourhood is congested or lacks some facilities. This way, one could skip visiting the property and move on to the next option.

When renting a property, one should check if there are social infrastructural facilities such as educational institutions, medical facilities, shops, parks, banks, etc. Moreover, one can also check if there is proper connectivity through roads and public transport like the metro. Another key factor is to check if the property is easily accessible from one’s workplace.

Further, landlords often tend to present the best version of their property and the locality before potential tenants and only talk about the positive aspects. However, prospective tenants can verify these details by speaking to neighbours around.

#5. Improper budgeting

Lack of proper financial planning when renting a property could pose difficulties for prospective tenants. Without estimating how much one will spend on the rented house, one may run the risk of exceeding their monthly expenses limit. This is a common problem with first-time renters, who may not know the associated costs. At this stage, before renting a house, potential tenants should also factor in the hidden costs of renting a property. Tenants incur additional one-time costs in the form of security deposit, moving and packing, interior designing, brokerage fee and rent agreement registration costs. They will also have to bear the recurring expenses such as utility and maintenance charges, parking charges, minor repairs, etc.

#6. Not communicating properly and not asking questions

After finalising a property for rent, one should get the contact details of the landlord so they could reach out them for any questions or concerns. Check with the landlord if you could contact them via phone call, text, email, etc. Tenants should always document their communication with landlords in writing. In case they face any issues or misunderstandings, they will have documented proof.

Moreover, some tenants fail to ask the landlord important questions at the initial stage. It is not advisable to move into a property without knowing the rent payment method or the person with whom one should connect for maintenance, utilities, etc. Potential tenants may also want to know whether they could paint the walls, change the flooring, install cabinets on the walls, etc. Some landlords or housing societies have a strict ‘no pets’ policy. Similarly, some landlords may impose rules on guests that tenants might invite to stay in the rented property. It is better to discuss these issues with the landlord and sort them out to avoid any confusion.

#7. Delay in rent payment or violating contract

The landlord and tenant are bound by the rental agreement and violation of the terms and conditions could result in negative consequences. Tenants must adhere to the terms like timely payment of rent or failure to pay rent, causing damages to the property, subletting the property without the landlord’s approval, engaging in any unlawful activities like running a business from the residential property, etc. In case of a breach of the rent agreement, the landlord can evict the tenant.

#8. Subletting the property

One of the common mistakes tenants in India make is subletting their rented property to earn rental income. Property subletting refers to renting out a portion of the property occupied by the tenants. A tenant is allowed to sublet only if it has been established in the initial rental agreement signed between the tenant and the landlord. A tenant cannot sublet the property without the landlord’s approval. In such cases, the landlord has the right to take action against the tenant, including eviction.

#9. Not taking professional help

Prospective tenants, especially first-timers, may benefit by taking the help of a real estate agent for their property search. Experienced brokers could help home seekers find the right property based on specific needs. They could also assist in the preparation of rent agreements and the negotiation of rent terms and conditions. However, if tenants find this expensive, they could approach property portals that offer the same services at reasonable costs.  This could save them a lot of time and hassles.

Housing.com News Viewpoint

The common mistakes prospective tenants make could lead to unexpected costs and legal troubles, including eviction. It is crucial to do thorough due diligence when selecting a property by considering different factors and not just finalising a property based on the attractive amenities it offers that the tenant may not even use. More importantly, tenants must pay attention to the rental agreement to avoid any disputes or misunderstandings. For this, one can approach a legal professional.

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