Renting or leasing a vacant unit for your domestic or business needs can end up being a big hustle, that may sometime go south, if you end up taking the wrong route.
Once you have rented or leased a unit, you own it temporarily for a set period of time agreeable during the beginning of the lease period. As a tenant, you will be required to pay a fee, normally on a monthly basis (monthly rent), to the owner of the property (the landlord) to enjoy the facilities being rented out.
As a prospective tenant, it is important for you to understand the entire process when sourcing for a property to rent. Different properties have different processes and requirements but there are standard rules that apply almost across all leasing transactions.
Let’s try and understand some key steps when renting a vacant unit:
1. Sourcing: This is the first stage for any prospective tenant. It is the point at which you begin looking for a suitable house to let/lease. It is always advisable to get a reputable agent when sourcing for a property to let. With a list of preferred locations, interests and preferences, the agent is able to come up with options within a short period of time.
2. Site Visit: Once the prospective tenant identifies at least three options, it is important to go and view the units. The goal here is one, to confirm that the property actually physically exists and two, check that the amenities and features mentioned in the property’s profile are in place. This stage is very critical as it is a precursor to the next stages. If the prospective tenant likes the property, then renting it out is almost always guaranteed.
3. Negotiations and offer: Here, the tenant is informed about the rent, security deposits, lease period, etc.
These details are always available in the tenancy agreement. The prospective tenant should also seek the finer details of the property up to his/her satisfaction.
All questions raised are answered at this point. Among the things to consider are whether there are other indirect costs, for example service charge, electricity and water charges and who pays for them. Sometimes, these costs are part of the rent payable therefore the landlords incurs the liability and other times, they could be the sole responsibility of the tenant.
4. Inspection: Once the prospective tenant makes the decision to rent out the vacant unit, it is always advisable to have a joint inspection with the landlord or his/her representatives. It is important to keep a record of the condition of the property when moving in. After expiry or termination of tenancy, an inspection will always be conducted by the landlord as a requirement before issuing back the security deposit. Damages and renovations are always charged on the tenant’s security deposit. If the condition of the property wasn’t documented at the beginning of tenancy, the tenant might end up being charged for items that they possibly did not interfere with.
5. Tenancy agreement & payment: After carrying out joint inspection with the landlord or his/her representatives, the tenant will be issued with a tenancy agreement. The tenancy agreement consists of an agreement between the landlord and the tenant regarding renting out the particular rental unit. Among the key items in the tenancy agreement is the monthly rent and security deposit payable and date of payment, lease period, size and nature of the property being rented out and terms and conditions of tenancy. If a prospective tenant agrees with the terms proposed, he/she signs the tenancy agreement, pays to the landlord’s account the sums of money agreed and returns the tenancy agreement to the landlord together with proof of payment. The tenant will then receive a copy of the tenancy agreement from the landlord with the inspection report attached and a payment receipt to show acknowledgement of first month’s rent and security deposit.
Having gone through the five steps above, a prospective tenant can now enjoy their lease period with peace of mind.
PMC Estates Limited lets out commercial spaces and residential units to prospective tenants. We DO NOT CHARGE for site visits.
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