Leasing Your House: A Quick Guide

Police verification

Police verification has also become mandatory before you handover possession to your lessee. After you finalize on the lessee, you need to carry out the process of police verification. For this, you have to submit a copy of lease agreement followed by other details of the lessee that includes the identification proof of the lessee, PAN card, address proof and occupation proof. By providing such valuable information, police will keep the documents for reference and will verify whether the lessee has any past criminal records.

How to outline the actual rent

Computing rent for property depends upon various factors. "The first element is the basic rent for the property, which is directly related to its capital value. It is usually 2.5-3 percent of the annual capital value and differs depending on the location of the house," said Amit Goenka, National Director, capital transactions, Knight Frank India.

House amenities also add up to compute rent. If you providing fully or partially furnished house to your lessee, you can charge extra rent for your house. Also, if you install a modular kitchen, good furniture and access to terrace, it will add the rent value even more.