Here are the 5 stories that you need to be aware of from this past week:

• The upcoming golden decade: A youthful demographic, seeking ready-to-inhabit homes, is engaging in a progressively organized real estate market. Information is readily accessible, and regulations are gradually gaining prominence. As demands and commendable industry standards thrive, perspectives on returns are also undergoing diverse evaluations. Read more
• RBI boost: The Reserve Bank of India has maintained the repo rate at 6.5% in its recent decision, showcasing the unwavering stance of the monetary policy committee. This move is anticipated to bolster housing demand, marking positive news for the real estate sector. Despite a 20% increase in EMIs over the past two years, the unchanged policy rates are set to provide stability and support to both homebuyers and developers. Read more
• Bengaluru’s soaring rents: The pursuit of a 1RK apartment has become an elusive quest for many, as rental rates surge to unprecedented heights. While the suburbs remain relatively affordable, areas near the city center and IT corridors have witnessed an astonishing spike in rents, with even 4BHK listings demanding rents as high as Rs 2.5 lakh and deposits of Rs 25 lakh. The rental landscape is transforming rapidly, presenting a unique contrast between Bengaluru and Mumbai real estate dynamic. Read more
• ChatGPT may stop talking: OpenAI is facing a potential financial crisis. A report predicts possible bankruptcy for the company by the end of 2024, attributing the situation to the exorbitant daily cost of running AI services like ChatGPT, which amounts to around $700,000. Despite the rapid success of ChatGPT after its launch in November 2022, recent data reveals a diminishing user base, with a 12% drop in July 2023 compared to the previous month. Read more
• Kicking the coal habit: In the heart of South Africa, a once towering coal-fired power station, the Komati Power Station, has undergone a remarkable transformation. Once a symbol of fossil fuel reliance, the station has now been repurposed into a beacon of clean energy, boasting a combination of 150 MW of solar, 70 MW of wind, and 150 MW of storage batteries. This transformation took place because of innovative approaches to climate financing. Read more

Now, that you have bought a property and are happy about it. At this stage you are faced with a dilemma – to rent out the premises or occupy it yourself.

If you rent it out it will offset some portion of your EMI in case you have taken a home loan. Most new property owners opt to let out the property. In case you have decided to rent out the property, here are some tips for you to be on the safer side and ensure no problems crop up later when you rent out a house.

Contact previous landlords: If the tenant has lived in the same location/city then you can do a check on his previous landlords. You can also ask for employer's phone number and address. Previous landlords will be able to tell you about the person as a tenant. You can ask all relevant questions to ensure the person is safe for you to lease out your property.

Personal references: The landlord must ask for 1-2 personal references who can be asked to verify your tenant. Family and friends are good sources to verify a tenant. If the person is clean he won't hesitate to share a few references. Still, it is only sometimes necessary that you will get this information as some tenants may not be comfortable sharing some information with you. You can politely ask for friends' numbers or colleagues' details just to keep them as a record.

What has been said so far is what you have to do from your side. There is no harm if you skip them. What is an absolute must from the legal side is police verification.

Tenant police verification: Remember, tenant verification is different from a background check. As a landlord, you have to make sure you know about the tenants you will be getting. Checking their background is part of your renting process for your safety. Still, the tenant police verification is also another part of this process. It is pretty integral and mandatory.

• Some people ignore the importance of tenant verification and rent out their properties without performing legal due diligence. This is not only risky for your property but also for you as a landlord. If you do not verify your tenant, you can be held responsible for this negligence if your tenant is involved in any criminal act. A landlord can be charged for the crime the tenant does.

How to do police verification of tenants: A police verification form is available online for tenant verification. Landlords should download this form and give it to the tenants for verification before handing over the house keys. This form requires a tenant to give his permanent address and other required details. It verifies a tenant and makes it easy for the landlord to involve the police in case of a dispute.

The process: Get a Police tenant verification form at the police station or download it online.

• Fill out all the details asked on the tenant verification form
• Fix a passport-size picture
• Provide ration card passport or driver’s license detail as proof of Identity
• Sign the form
• And after submitting the form, save the acknowledgement receipt

What is a good rule to calculate maintenance costs a renter should pay a landlord?
- Avika

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Disclaimer: This newsletter is intended for informational purposes only and should not be construed as professional advice. Please conduct your own due diligence prior to making any decisions.