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Subletting

In simple words subletting means creating a rental agreement / lease agreement, where the tenant rents out all or part of the building to another individual for a particular period. In most cases it is a part of the rented premises and not the entire premises. Renting out the entire space could result in breaching of the lease agreement. The individual to whom the property is rented out is a subtenant.

Subletting can be worked out in two ways

1. The Tenant becomes the Landlord to the subtenant. In such a case – the original tenant is a tenant to the Landlord and has to abide by the rules of the lease agreement. He is a landlord to the subtenant and has to follow the sublease with the subtenant. In such a case, the original tenant is liable for all the actions of the subtenant. In this case the Landlord expects you to pay the rent though you are renting out the property with his permission.

2. The Tenant becomes a cotenant along with the subtenant. In such as case, the original tenant and the subtenant are jointly responsible and in lease with the Landlord

As a Tenant, in most occasions, subletting is done

(i) You want to come back to the same apartment at a later date.

(ii) You are staying with your room mates and at-least one of them is staying behind. This is most common with bachelors accommodation or students accommodation.

(iii) Companies when they downsize – also think of subletting the premises.

The First and Foremost thing to be done before subletting the property is to check with the Rental Agreement / Lease Agreement for the subletting terms and conditions. If it is not mentioned or permitted as per the agreement, then you have to get a written permission explicitly from your Landlord (better in writing) before you sublet the property to avoid conflicts and legal issues. In such a case, the Landlord may charge a fees or additional rent for subletting the property.

Sublease

Sublease is a lease agreement between the tenant (who already has a lease with the Landlord) and the new occupant who will take a part of the building or whole of it for a particular period. The Landlord is generally not a part of the sublease. The sublease claims that the original tenant decides to let someone else share and stay in the property with the permission of the Landlord. On the other hand, as an owner of the Property, the Landlord, having more rights can refuse to sublet. 

Sublease can be for a long term or short term. The sublease does not affect the lease between the Tenant and the Landlord but the original lease is incorporated by reference in the sublease. Similarly a sublease cannot overrule the restrictions contained in the original lease. For instance, if the sublease is for a restaurant and if original lease has a restriction for commercial or retail, then the sublease cannot be allowed.

Though subletting could be an ideal (practical) choice for making use of the unused space in the rented house and also generate additional income, you need to evaluate the pros and cons of the decision.

Advantages of Subletting

  1. Space Utilisation – If you have a space that is unused, subletting results in maximum utilisation of the vacant space.
  2. If you are not staying in your house and paying the rent, then you feel that money is being wasted. When you sublet – you are sharing the rent thereby saving money.
  3. If you are frequently travelling and will be away from your property regularly, then you have someone to take care of the property in your absence.
  4. Helps to ensure that the Landlord gets the rental payments due to flexibility of financial burden and sharing of the maintenance tasks.
  5. You do not break the lease when you sublet the property and gives you flexibility.
  6. Subtenants can become primary tenants at a later date if required.

Disadvantages of Subletting

  1. Tenant Finding is the most important factor in subletting. You have to make a thorough background check of the individual before subletting else it could pose a serious risk to both the tenant and the Landlord and you can end up with many obstacles.
  2. If the subtenant is unreliable, you could end up spoiling your reputation with the Land Lord. Since your reputation is at stake, you can use the services of Rental Assistance Service Providers or Property Management Service providers to find a tenant or do the background check.
  3. If the subtenant damages or skips the rent, then you will end up paying for the same because the Landlord is not a part of the sublease.
  4. The Landlord must rely on the primary tenant to ensure the original terms and conditions of the lease are followed by the sub tenant.
  5. If there is a conflict with the subtenant then you will run into various obstacles. You will be responsible to the terms and conditions as per the original lease agreement with the Landlord.
It is very important to create a sublease agreement and not do things over a handshake or by word of mouth. This could result in leaving you open to pay for the damages and taking over unpaid rents.

Keys Factors to consider for Sublease Agreements

  1. It is important to determine the security deposit (along with the rent) when subleasing the property to cover the damages and unpaid rent (if any in future).
  2. The Sublease should mention the rent and the payee details to be clearly mentioned – whether it is to be paid to the Tenant or to the Landlord.
  3. The Sublease should specify the period of the sublease and the renewal terms and conditions.
  4. The sublease contract should clearly mention the property extent that the subtenant will use and control including the utilization of the amenities and common areas including the parking sharing.
  5. The condition of the property is to be mentioned and any improvements to be done by the sub tenant should be mentioned.
  6. The sublease is to mention the purpose for which the property is to be used and the duration of the same.
  7. There should be a plan for the payment of the common bills and the utility bills. 
  8. The Sublease should mention the utilization of the premises and the amenities provided to the subtenant

Conclusion

Now that you have got a fair idea of the subletting, subleasing the important point is that you have to screen the subtenant and make sure he is reliable else it could cause more problems than solving the problems. The worst thing that can happen is having a tenant who is unreliable and breaches the sublease. You are ultimately legally responsible with the Landlord.

Marketing Rental Properties in Chennai

In simple words – Marketing refers to the activities undertaken to promote the buying or selling of a product. Marketing includes various activities like advertising, delivering the product, selling it and also creating a demand for the product.

When marketing a property for rental it is essential to have a plan which will give maximum exposure to the prospective tenants who are looking for a rental property thereby shortening the vacancy period of your property.

Property Photographs

It is important to have real photographs and good photographs. We all have heard the saying that a Picture Speaks a Thousand Words. Pay attention to the lighting when taking the photographs and use the wide angle camera to get the maximum coverage of the property. The photographs should have the internal photographs of all the room taking in right angles to give the complete list of amenities available in the house. A video tour showing the entire house can be an added advantage for the prospective tenants. Do not forget to include the exterior of the house and roads in the photographs.

Enclosing the photographs of the property increases the viewership due to the tenancy to scroll through the photographs and video to have a better idea of the property. More time is spent in looking at the photographs and then go through the details of the Advertisement. Therefore it is very important to Prepare your Property for Rent before taking the pictures.

Headline about property

The search for property starts with a general headline. This will be the first thing that the prospective tenant will have a look at when he starts searching for a property. The headline could be search with location or type of property. Make sure that it is placed in the correct headline section and more importantly the headline has got to be catchy to stand apart from the rest. Try to include the number of bedrooms, type of property and location in the heading. Also if possible anything unique about the property can be mentioned.

Property Description

Catchy Headlines and quality photographs – your job is 50% done. A detailed description of the property with correct details relevant to the property with the use of right adjectives wherever required will have a great impact.

Share the neighbourhood details, public Transport facilities, highways or railwaystation or bus stops, super markets, schools, universities & colleges, parks or any other infrastructure details that need to be disclosed. It will also be great if the distance can be mentioned in the details along with the time taken to reach.

It is important to mention in detail about the area of the property, number of bedrooms, bathrooms, dining, balconies, wash areas, open space around the house and all features and highlight the amenities of the property. Photographs give you an idea of the rooms but not the actual size of the rooms. It can help the prospective tenant if the room sizes can be mentioned in the Advertisement.

It will be a good idea to include the type of tenants preferred in the description so that the tenants do not waste your time and also mention whether the property is pet friendly.

When providing the details of the property – make sure not to over exaggerate on the details. Use of bullet points with side headings can be a good option.

Advertise your property

Now that you have a catchy headline and a great property description, you have to make sure that it reaches the right prospects. The advertisement has to be online on platforms where the tenants search for properties. Monitor the online ads with search engines and see the position of your ad in comparison to the other Ads. Make appropriate changes in the content at right times and convert the ad to a paid ad if required to get a better response or if the market is competitive.

The other areas not to be neglected are offline ads in Newspapers and ToLet boards at the property.

Alternative Method to Promote your property

Hire a Property Management Services Company or Rental Assistance Providing Companies who will take care of the entire process of Tenant Finding.

Early Termination of Rental Agreement & Lease Agreement

A Rental Agreement / Lease Agreement is a signed contract between the Landlord and the Tenant in which the tenant agrees to take the property on rent owned by the Land Lord. The Rental Agreement / Lease Agreement outlines the terms and conditions agreed between the landlord and the tenant during the period of the agreement.

The contract is time bound and there could arise circumstances when either the Tenant or the LandLord may opt for an early termination of the agreement. Under such circumstances, it is important to abide by the state laws and the terms and conditions of the contract providing proper notice to either party for terminating the contract.

The early termination could be personal or professional reasons. Let us have a look at the circumstances that could lead to the early termination of the Rental Agreement or Lease Agreement.

Job Transfers – This is one factor that the tenant does not have control and he has to move out to retain his job or alternatively look for another job. In such a case it is advisable to let the Tenant move on and to find a replacement.

Employment Loss – This is faced by many people in their lives but remaining unemployed for a long period (more than a couple of months) can result in not being able to pay the rent. In such a case, the owner’s may want to terminate the agreement if this impacts the rental dues. In such as case, compassion with practical solution with your tenant can work out with a common solution.

Need for a Bigger Home / Extra Space – Time keeps ticking and we all grow up. Kids become adults and as a result more space / separate space will be required. In Indian culture where the children respect and take care of their parents as they grow up – will get married and will need more space or additional rooms thereby wanting a bigger home. As a Property Manager, it is better to consider the age of the children and future requirements of the family before renting out to families with elder children. Apart from this, the Tenant may also want to move out due to change in life style of the Tenant

Illness – This is one more factor like Job Loss where a prolonged illness can have severe impact on the Tenant’s financial status. In such cases when the tenant defaults in rental payments and the Tenant and the Landlord may opt out for an early termination of the Rental Agreement. In such a case, it will be better to work out with compassion with your Tenant understanding his situation.

Family Separation – In cases like these where both the partners are employed, a separation can impact the rental payments In such a case, like Job Transfers – the tenant will be left out with no option but to terminate the agreement and move out for a accommodation suiting his budget.

Maintenance Issues – As a Landlord, you are obliged to provide the unit with proper amenties and safe habitat to the Tenant. Regular maintenance of the electrical, plumbing, non leakage of ceilings, roofs and walls, freedom from mosquito, pests. These factors if not attended to may be hazardous and the tenant may opt for vacating the premises fearing health hazards and troubles in maintenance. Vice versa if the Tenant does not maintain the property in good condition, the Land Lord will opt for termination of the contract and recover the damages for improper maintenance from the Tenant.

Interfering in Tenant’s Privacy – In spite of being the owner of your property, you do not have the rights to enter the property as and when you please. A proper notice is to be given to enter the property and overindulgence in entering the property will affect the Tenant’s privacy. If the Tenant is not able to handle this – he may think of terminating the agreement. It is always advisable to visit the Tenant when there is emergency or with proper notice / valid reason.

Self Occupation – The owner may require the property for his own living. The reasons could be anything like retirement and coming back to his property.

Natural Disaster – Natural disasters are difficult to cope with and the issues is not only faced by the Land Lord and Tenant but by the entire community.

Rennovations – If there is an insignificant damage to the property and is not in a liveable condition, then either Land Lord or the Tenant may terminate the agreement for repair of the property.

Agile Property Management Services Company – when providing – Rental Assistance Services & Property Management Services, serving in Chennai and around Chennai – have come across all the above mentioned situations at different times and when such a cases arise, we consider various factors of the agreement and analyse the situation and communicate with the owner and tenant with an objective of meeting at common grounds for a smooth transition.

Some Agreement Terminations can be avoided and some cannot be avoided. It is very important to recognise and have a sense as to when to terminate the Rental, Lease or any other agreement and when to avoid and continue the agreement with minimal risk to the Landlord. In cases where the Early Termination cannot be avoided it is important to smoothly handle the terminations in a way that is fair to and transparent to both the parties.

Key Factors to Examine Before Enlisting a Property Manager for Managing your Property

If you are looking for a Property Manager for taking care of your Property, then Hiring a Property Manager is a major decision to take care of your property. The Property Management Company that you hire will be responsible for your assets and will be on the Front end interacting with the Tenants, contractors and all the other areas to upkeep your property.

Having taken the decision, you need to decide on the Property Management Services you require and streamline based on attributes which will suit you.

Professional with Good Communication Skills

The Property Manager represents you and therefore you have to be sure of his professionalism. Good Communication Skill is the basic requirement of a Property Manager since he has to handle multiple tasks and has to interact with multiple people for upkeep of your property.

It can be stressful at times when there are delays in works or rent collections and patience is another virtue that a Property Manager needs to have. At such times, the Property Manager need to be assertive at the same time polite to get the job done.

The property manager needs to build strong relationship with the tenants, community, vendors and neighbourhood. Good Communication skills along with quick and timely response are the essentials of essentials of a good property manager.

Multi Tasking Ability

Property Managers do several tasks and at times it happens that multiple tasks come at the same time for different properties. The Property Manager should have the infrastructure and ability to perform the tasks with an organized approach.

Technology & Learning

Technology is growing in leaps and bounds and this has brought in lots of changes in the communication methods. What was imagined years before (like video calling) is now a days very common among kids too. A good Property Manager should embrace the latest technology, software and use it to his advantage to give quicker and more effective service.

We stop growing when we stop learning – I have heard this from people. A good Property Manager should be a good learner and competent with information about the market, rules and regulations, factors affecting property rental and sales and all other factors related.

Efficient Management

There is a saying which says that “Money saved is Money earned”. A Property Manager with Good Negotiating skills will save money for you by skilfully negotiating with the contractors, tenants, vendors, annual maintenance contract service providers and various other areas. Reduction of cost and efficient financial management will increase your income.

It is also important to handle expenses and to efficiently rectify issues when they are small and not delay it for a high expense at a later date. He has to be proactive to foresee the future expense and do the timely repairs to avoid major repairs in future.

He should efficiently manage the rentals with minimum vacancy period there by maximising the returns on investment.

He needs to be tuned with the Rental Dynamics and be shrewd enough to suggest value added things to increase the rental income for the owner.

Ability to manage the day to day chores like advertising, screening tenants, rental agreements, rent collection and upkeep of property with timely repairs and maintenance and Tenant Management.

Decided to hire a Property Manager

Property Better than U

Clearly list out the Property Management Services that you are looking for. No one knows your property better than you.

Hire a Property Manager

Hire a Property Manager who is aligned to your thinking process and values.

Detailed Discussion

Discuss all minute details - Have a detailed discussion about the list with your Property Manager – it could be negotiating rents, maintenance of the property, inspections and regular updates of your property.

Trust your instincts

Trust your instincts and gut feeling to sense if there is transparency, genuinely, sincerity, professionalism, sense of commitment, patience, negotiating skills etc.

Benefits of Working with Rental Assistance Service Provider

Benefits of Working with Rental Assistance Service Provider

Agile Property Management Services is a fast growing company providing Property Management Services and Rental Assistance Services in Chennai city and its surroundings. Dealing with a professional Company like ours has the following benefits.

We provide end to end management of Rental Properties starting from fixing of the amenities to cleaning and painting of the house. We will get the property ready for rent and in the best of condition. Your visit to the property is minimized and you can invest your time and effort in other useful activities.

Benefits of Working with Rental Assistance Service Provider

We will act as your representative (till tenant is finalized and moves in) providing information to the Tenants about your property and organising regular visits to your property to show it to the prospective tenants. Our service is continuous with regular updates to you on the people visiting the property and you are regularly updated on the condition of your house.

We have a professional Tenant Screening process. We document the details of the tenant along with his id proofs (both organisation and personal) for any future references.

After finalizing the tenant, we take care of the Rental Agreement Paper Work and assist the move in process with the Tenant.

How to Get Started:

From Rental Assistance Service, upgrade to our Property Management Service to get additional benefits

(i) Act as your representative – 24 x 7
(ii) Rent Collection & Follow up
(iii) Follow up of Servicing of Amenities as per the AMC Contract
(iv) House Inspection, Inventory Checking & Reporting when Tenant vacates the property
(v) Lease Agreement Enforcements / Rental Agreement Enforcements
(vi) Lease Agreement Renewals & Lease Agreement Terminations
(vii) Regular Updates during the Property Management Agreement Period
(viii) Assisting and Coordinating Repairs & Maintenance
(ix) Tenant Management
(x) Payment of Taxes

 

We are associated with qualified Attorney who can assist in legal matters and get advisory support
from them in case of any legal dispute,