What property agents should know before entering the rental market?
The world has been under the spell of Covid-19 for about two years now.
With everything put on a standstill, the evergreen rental markets were no exception. But now that things are getting back to routine with uplifting restrictions, one can witness a clear roadmap and expect a return to a booming rental market environment.
The real estate rental market endures a huge potential. With work from home culture coming to an end, people have started migrating to cities, instantly inflicting rise to more and more rental demands. With that said, there lies a big opportunity for real estate agents to make the most of this demand and to grow their businesses. And, if you’re planning to enter the rental market arena, here are some things to consider and know.
Documentation & Police Verification
If you’re a tyro in the real estate market and are aiming to establish yourself as a trusted broker, you need to document and conduct a mandatory police verification. In most Indian states, landlords must undertake a police verification of their tenants. A broker should ask the tenants to submit their documents to the landlords for the mandatory process to take place. Being an agent, one should also conduct a peculiar check on the client’s background to verify the credentials. The process will help one earn trustworthy clients who are genuinely interested in renting a property – creating fewer chances to deal with shady clients, resulting in a bad market reputation.
Security Deposit
Transparency in the system plays an extremely important role in shaping a smooth rental experience. The security deposits from the tenants are refundable. As a broker/agent, you should clearly communicate the security deposit amount to your client and the landlord. The same should be documented well in the rent agreement after proper discussion with both parties.
Documentation of the rental agreement
A rental agreement is a document that explains the terms under which a tenant rents a residential or commercial property from a landlord. The conventional rental agreement is for 11 months. Being an agent, one is expected to prepare a draft of the rental agreement as a broker is a middleman in the entire system. A legal lease agreement should be designed for legal protection. As a broker, one can check out some sample rent agreement formats online. In the digital era, the rent agreement can also be prepared online through websites like Housing Edge and e-stamp.
Clarity about the brokerage fee
Agents in a rental market earn brokerage from both parties, the landlord and the tenant. The brokerage fee is generally negotiable, but the general market brokerage fee is equivalent to the property’s monthly rent. An agent/broker can set their own rules, considering relevant aspects like location and property requirements.
RERA registration for brokers
Being a fresh player in the rental market, you need to consider this point. A license from the state’s real estate regulatory authority (RERA) is required for an agent to set foot in the real estate market. Therefore, if you aim to expand your business to buy-sell transactions and make a credential mark in the rental market, you need to acquire the respective license. Not only will it add to your credibility in the market and among your existing clients, but it will also prevent you from future problems. Your RERA ID can be a benchmark for your business growth.
Final Thoughts!
The rental market is a booming market, and it endeavors to grow substantially in the coming times. Success in rental markets is definite if planned accordingly. Hence, brokers need to consider these factors and ace their game in the rental market.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
