Researching your new property
Knowing the ideal area/community you would like to live in will give you a better idea of where to start.
Location, location, location
Consider the location of your home relative to your life requirements: Schools, transport, amenities. Commuting should also a big factor in your decision – a long journey can detract from your quality of life.
Include rent advances, brokerage fees, immediate relocation expenses, down payments for gas, Internet connections, other loan payments, transportation expenses, food and any activity that you do on a regular basis that costs money.
Remember the little things
It’s rare to find perfection, so keep to your list and don’t lose focus of what’s important. Bring a notepad to each viewing and take photos for reference. Make a snag list to ensure all issues are addressed by the landlord.
Always consider the size and dimensions of the property if you are moving to a new apartment.
Don’t settle for a quick walk through. Check if the air conditioning works properly. Inform the landlord if you have any doubts regarding the quality of the electrical wiring, plumbing or lighting. Ask Aristo to help you with this.
Facilities and amenities
Renting an apartment in a complex that has pools, playgrounds for children or recreation rooms is a great way to enjoy your new community without having to spend too much.
Get it together
Prepare all required documentation:
For an individual:
For a company:
Most landlords require one upfront rent cheque as earnest money. Approx 5-6 months of annual rent is the refundable Security Deposit paid to the Landlord to secure the property and is to be paid at time of registration or before move in whichever is earlier. Subsequent Rent payments are made either through post-dated cheques or electronically transferred to the Landlords account in the first week of every month. Ensure that payment terms are clearly stated in the contract upon signing.
Advantages of Renting
i. Its a cheaper and affordable way (less upfront costs) as you only need to come out
ii. with deposit payments equivalent to 6 months rental which are refundable;
iii. Faster move in time unlike property purchase which takes 3-4 months to complete the deal and hand over the property.
iv. Option of choosing length of stay according to tenant’s need
v. Low documentation costs such as legal fees, stamping and registration charges compared to home ownership transfer that includes stamp duty registration and society/builder transfer.
vi. No need to bear property taxes, maintenance charges and structural repair costs either as these costs are also to be borne by the landlord.
vii. Provides flexibility – One can consider relocation due to better job prospects, school etc without having to worry about the empty home!
Company or Individual Lease
In a company lease the company signs the License agreement as a Licensee. The monthly rents and deposit will be paid by the company to the Owner/Licensor. In case the flat occupant relocates the company can bring in another employee to occupy the same apartment. In a company lease the monthly rent is subject to deduction of TDS up to 10% as per the income tax rule and up to 30% in case the owner is an NRI.
In an individual lease an employee can choose to sign an agreement with the Owner/Licensor as a Licensee and pay the monthly rent and deposit to the Owner/Licensor directly and claim reimbursement for the same from the company subject to submission of the copy of the agreement and monthly rental receipts. In an individual lease there is no deduction of TDS.