During the past few decades, Bangladesh’s population has been more inclined towards metropolitan lifestyles and employment opportunities. A massive void has been created for the rental industry in metro cities as a result of this rush.
Currently, property owners can easily find ways to make a handsome amount of money renting their assets. It is clear that the rental market is booming, and there is no reason why you should not be a part of it.
A few factors might be worth considering when preparing a flat rental for the first time in Bangladesh:
The objective of flat rent
Your property needs to be clear in your mind about what and why you want to rent it out. Your house may be for rent for a variety of reasons. You could earn an additional source of income from it, which is one of its most notable advantages.
A residential property rental in Bangladesh happens faster than any other kind of rental in Bangladesh, so the succeeding approach will be within your reach.
There is a possibility of getting a large-scale advance payment with a rental agreement for a commercial building since they are generally made for longer periods of time than residential ones. Additionally, commercial properties usually rent for more than residential properties in many cases.
Get your apartment ready for renters:
Renting an apartment or home in a down market is impossible. The availability of rental homes causes tenants to be more picky and attentive at such times, especially after COVID-19.
Clean your home completely, check that all of the appliances are in good working order, and get your house ready for the tenants. Make careful to isolate the space from the rest of the building if you are renting a room or an apartment.
Always remember to obtain property insurance before moving through with apartment leasing. If there is a contract, your renter, not you, will manage the property. So, always get in touch with your agent and work to secure the highest level of liability protection for your unit.
The sum of your apartment’s rent
When the preparation and the goal are set, you may proceed to determine the appropriate rent for the flat. The rent should be determined using a valid formula and particular factors.
The building cost of the property plus 15% of the land’s worth should determine the rent of housing flats, according to Bangladeshi tenancy legislation. As a landlord, you must bear in mind that the amount may vary depending on the location, local amenities, transportation, and other factors.
It could appear simple to convert your flat into a home. However, it’s always preferable to speak with real estate lawyers to make sure you are considering tax laws and local property regulations.
In Bangladesh, you may decide how much to charge for rent by researching the prices of nearby rental homes. Remember that prospective tenants will search the website for better offers, so place the rent within a reasonable range and emphasize all the beneficial features you have to offer.
Where to look for Lodger?
So where do you begin your search for the ideal renter for your apartment? There are several approaches to solving this problem. You might start by putting your house up for rent on a well-known website or by contacting nearby real estate brokers.
If you want to rent out a luxurious bungalow or apartment that you own, you might want to speak with a real estate expert to make the rental process easier.
How to screen your Lodger carefully?
Whether it’s your first time renting out a property or not, you should never skip doing a thorough background check on the prospective renter.
Make sure to note over your advertisement that bachelors are not permitted in the neighborhood where your home is located. Your ambitions for apartment rent will be aided by it.
Before entering into a lease agreement with your renter, comply with the appropriate norms and regulations of the society in the same node.
Additionally, you must get the “Renter Information Form” after or before the tenant moves in and give a copy to the neighborhood police station.
Why is it important for you to have your rental agreement prepared?
A lease binds a tenant and a landlord in a way where both sides will experience certain shared interests.
For this reason, while creating a rental agreement, it should contain details such as tenure, an advance deposit, monthly house rent, the reason for staying, and so on. A thorough lease will specify who is responsible for paying utilities (water, electricity, and maintenance) bills.
Registering a rent agreement
According to the Premises Rent Control Act of 1991, any contract or arrangement that lasted for a year had to be recorded.
This implies that if your lease agreement with your renter lasts more than a year, you must register it. A rent agreement that has not been registered cannot be used in court as justification for future disputes or factions.
Hidden costs of a flat rent
There is a utility charge (gas, water, maintenance), which may or may not be included with the main price, in addition to an upfront deposit fee and the monthly rental. This needs to be clarified in the rental agreement for the flat as well as discussed with the renter.
There may be an additional fee for enjoying clubhouse amenities in certain pricey housing societies, which may be added to your monthly expenses. Along with the primary one, you also need to consider the costs of a CCTV camera, a night guard, and an intercom. Additionally, if you choose to reside in some upscale neighborhoods in Dhaka, like Uttara, you may incur additional costs in addition to your usual rent.
Although a landlord-tenant relationship may develop into a close one over time, it must be seen as a commercial partnership generally. The agreement must be signed and all details must be documented.
You can visit your property to do periodic inspections in addition to the aforementioned advice for renting your apartment to ensure that the tenant is maintaining it properly and not breaking any rules. After all, it is still your home.
Renting a house or apartment may be advantageous for both parties. The bottom line is that you need to be fully aware of what you are signing up for. If you are successfully achieving your goal, renting will significantly increase your monthly revenue.