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Wednesday 3 August 2016

10 things to know before signing a lease

10 things to know before signing a lease

When you find an apartment you love, all you want to do is move in quickly. But look before you leap and lease. Here are 10 things you should know.
1. Be sure about the area and rent
Before you finalise a property agreement, check how accessible it is. An important factor directly related to locality is rent. Consider the rent and how far you can stretch your budget. Do a detailed analysis of rent vis-à-vis convenience.  
 2.  Know the landlord
Remember to get information about the owner as well. If a broker is involved, ask him the owner’s name, profession, and other details. It is best to meet the owner in person. Developing a rapport with the landlord is crucial. It will help you to address your concerns later and negotiate better.
 3. Examine the place for damage
Before you sign on the dotted line, visit the premises for a thorough inspection. You do not want to be stuck with issues like leakage and a non-functional AC after you have moved in. If you spot any issue, speak to the landlord beforehand to get it repaired. If it cannot be repaired, remember to mention it in the lease contract as a pre-existing condition.
 4. Discuss the inclusions and exclusions
Have a clear discussion with the landlord about what is included in the monthly rent. Ask if it includes the costs of utilities, maintenance, cable, and parking. If these are excluded, they could push up your cost substantially. It could have a big impact on your budget and lifestyle.
 5. Verify the lease
As with any  contract, read your lease contract carefully before signing. Read between the lines to find any hidden costs or obligations. You need to be aware of everything mentioned in the contract. It would help you in case any conflicts arise.
 6.  Be aware of the exit terms
It is extremely important to have a mutually agreed upon termination clause. Other than the notice period, check for any other conditions that are mentioned. You must know about the penalties you might incur in case of early termination.
 7.  Find out the society rules
These days, societies have their own set of rules and by-laws. The rules may relate to maintaining surroundings, pets, visitors, and parking for visitors. For some reason, the rules are stricter for tenants. Find out about these rules for they may require you to compromise a bit.
 8.  Check if you can make changes
When you stay at a place, you want things to be in a certain way to feel at home. Hanging artworks or painting the walls may not be allowed. It is advisable to check if you are allowed to do so. Also, find out if you would have to redo everything before moving out.
 9. Know the renewal terms
Some lease contracts are renewed directly, while others require you to go through the process again. You may consider adding the direct renewal clause to avoid the hassle if you plan to stay long-term. Another clause included in the renewal terms is the rent. The rent you are supposed to pay will also increase at a certain rate at the time of renewal.
 10. Check if you can sub-let
To cover the cost of rent, you may want to ask a friend to share the apartment with you. But before you do that, check if you are allowed to do so. If you are not, consider requesting your landlord for permission. Failing to do so may lead to legal trouble.



Happy investing
Source:Moneycontrol.com

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